Mini-Case E: (5 marks) It is February 18, 2022, Asra and Yadi are looking to buy their first home but prices during this pandemic seem especially high. To come up with the down payment, they will need to dip into their Registered Retirement Savings Plan's (RRSP's) to take advantage of the Home Buyer's Plan (HBP). To date, Asra has made a total of $27,000 in contributions to her RRSP while Yadi has made $24,000 in total to his. Their RRSP's have grown over the years and the market value for Asra's RRSP is $38,763 while Yadi's RRSP is valued at $31,222. They are now looking to withdraw from their RRSPs under the HBP, for the which they will use as a total down payment on their dream home. They have turned to you for some help to their questions. a) Based on the information they have provided you, what is the total amount that Asra and Yadi can withdraw from their RRSPs under the HBP for their down payment on their first home? See Table E (.5 mark) Total: b) Asra and Yadi must start re-paying into their RRSP beginning in the second year of withdrawal. Calculate the minimum annual repayment amount that Asra and Yadi must re-pay to their respective RRSPs? (1 mark) Asra's calculation for the minimum annual RRSP repayment amount for the withdrawal under the HBP (5 mark) Yadi's calculation for the minimum annual RRSP repayment amount for the withdrawal under the HBP (-5 mark) c) Calculate if the down payment on the home through the Home Buyer's Plan would qualify for a conventional mortgage (they are looking to purchase a property on the market for $331,000). (.5-.25 marks each) Conventional mortgage calculation (.25 marks) Will they qualify for a conventional mortgage? Underline and highlight response Yes or No 0.25 marks) d) Asra and Yadi are going to the CIBC to discuss a potential mortgage. Based on the following information, calculate the Gross Debt Service (GDS) ratio. Asra's gross annual salary is $125,150, while Yadi's is $123,750. The property they are looking to purchase would result in monthly heating costs of $360, condo fees of $3,950 per year, while their annual property taxes would be $6,484. Asra's only debt is a car loan of $835 per month, while Yadi has a student loan of $220 per month. Calculate the GDS ratio using a monthly mortgage payment of $5,572. (1 mark) Calculation of the GDS ratio (1 mark) e) Asra and Yadi forgot they had to pay the "Welcome Tax" (also called Property Transfer Duties) on the purchase of a new property. Using the table below or the link for Montreal properties, calculate their Property Transfer Duties https://montreal.ca/en/articles/how- property-transfer-duties-are-calculated-9279 (1 mark) Montral Rates by value brackets 5. Menu Property transfer duties are calculated according to value brackets that correspond to certain rates. These brackets sometimes called threshold change every year. in Montreal, the value brackers from January 1to january 31, 2022, are as follows Tax base value Rate Up to 553200 05 553,200 to $266,200 5266,200 to 5527,900 15 5527,900 to 51,055,800 Calculate the Property Transfer Duties (1 mark) f) As Asra and Yadi could barely afford the down payment for a conventional mortgage and as they forgot about the Property Transfer Duties, they are now trying to re-work their numbers. They are curious to know how much it would cost in Default Mortgage Insurance if they only put 15% as a down payment. Calculate their mortgage default insurance using the table Default Mortgage Insurance rates using 15% as a down payment. (1 mark) Canada Mortgage and Housing Corporation (CMHC) Default Mortgage Insurance rates: Down Payment Size Premium Charged 5% 4.00%{for a traditional down payment) 4.50% (for a non-traditional down payment) 1096 3.10% 1596 2.80% 2096 2.40% 2596 1.70% 35% 0.60% alculation of Mortgage Default Insurance (1 mark) Mini-Case E: (5 marks) It is February 18, 2022, Asra and Yadi are looking to buy their first home but prices during this pandemic seem especially high. To come up with the down payment, they will need to dip into their Registered Retirement Savings Plan's (RRSP's) to take advantage of the Home Buyer's Plan (HBP). To date, Asra has made a total of $27,000 in contributions to her RRSP while Yadi has made $24,000 in total to his. Their RRSP's have grown over the years and the market value for Asra's RRSP is $38,763 while Yadi's RRSP is valued at $31,222. They are now looking to withdraw from their RRSPs under the HBP, for the which they will use as a total down payment on their dream home. They have turned to you for some help to their questions. a) Based on the information they have provided you, what is the total amount that Asra and Yadi can withdraw from their RRSPs under the HBP for their down payment on their first home? See Table E (.5 mark) Total: b) Asra and Yadi must start re-paying into their RRSP beginning in the second year of withdrawal. Calculate the minimum annual repayment amount that Asra and Yadi must re-pay to their respective RRSPs? (1 mark) Asra's calculation for the minimum annual RRSP repayment amount for the withdrawal under the HBP (5 mark) Yadi's calculation for the minimum annual RRSP repayment amount for the withdrawal under the HBP (-5 mark) c) Calculate if the down payment on the home through the Home Buyer's Plan would qualify for a conventional mortgage (they are looking to purchase a property on the market for $331,000). (.5-.25 marks each) Conventional mortgage calculation (.25 marks) Will they qualify for a conventional mortgage? Underline and highlight response Yes or No 0.25 marks) d) Asra and Yadi are going to the CIBC to discuss a potential mortgage. Based on the following information, calculate the Gross Debt Service (GDS) ratio. Asra's gross annual salary is $125,150, while Yadi's is $123,750. The property they are looking to purchase would result in monthly heating costs of $360, condo fees of $3,950 per year, while their annual property taxes would be $6,484. Asra's only debt is a car loan of $835 per month, while Yadi has a student loan of $220 per month. Calculate the GDS ratio using a monthly mortgage payment of $5,572. (1 mark) Calculation of the GDS ratio (1 mark) e) Asra and Yadi forgot they had to pay the "Welcome Tax" (also called Property Transfer Duties) on the purchase of a new property. Using the table below or the link for Montreal properties, calculate their Property Transfer Duties https://montreal.ca/en/articles/how- property-transfer-duties-are-calculated-9279 (1 mark) Montral Rates by value brackets 5. Menu Property transfer duties are calculated according to value brackets that correspond to certain rates. These brackets sometimes called threshold change every year. in Montreal, the value brackers from January 1to january 31, 2022, are as follows Tax base value Rate Up to 553200 05 553,200 to $266,200 5266,200 to 5527,900 15 5527,900 to 51,055,800 Calculate the Property Transfer Duties (1 mark) f) As Asra and Yadi could barely afford the down payment for a conventional mortgage and as they forgot about the Property Transfer Duties, they are now trying to re-work their numbers. They are curious to know how much it would cost in Default Mortgage Insurance if they only put 15% as a down payment. Calculate their mortgage default insurance using the table Default Mortgage Insurance rates using 15% as a down payment. (1 mark) Canada Mortgage and Housing Corporation (CMHC) Default Mortgage Insurance rates: Down Payment Size Premium Charged 5% 4.00%{for a traditional down payment) 4.50% (for a non-traditional down payment) 1096 3.10% 1596 2.80% 2096 2.40% 2596 1.70% 35% 0.60% alculation of Mortgage Default Insurance (1 mark)