An Alberta first-time buyer makes their first Home Buyers' Plan (HBP) withdrawal from their RRSP in 2026. What is the maximum withdrawal, and when must repayment begin?
Correct Answer
D) Maximum $60,000, repaid over 15 years, beginning in 2031
Under s. 146.01 of the Income Tax Act, HBP withdrawals are limited to $60,000 and are repaid over 15 years. Repayment normally begins the second year after the withdrawal, but the temporary relief in s. 146.01(4.1) applies where the completion date (October 1 of the year after the withdrawal) falls after 2022 and before 2030, which covers withdrawals from 2022 to 2028 and pushes the start back three years. A 2026 withdrawal has a completion date of October 1, 2027, so repayments begin in 2031, the fifth year after the withdrawal.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Mortgage & Real Estate Finance Question
Background Knowledge for Mortgage & Real Estate Finance
Real World Application in Mortgage & Real Estate Finance
Common Mistakes to Avoid on Mortgage & Real Estate Finance Questions
Key Terms
More Mortgage & Real Estate Finance Questions
What happens to monthly payments in a variable rate mortgage when interest rates increase, assuming the mortgage has a fixed payment structure?
What is the primary purpose of the B-20 stress test for uninsured mortgages?
An Alberta buyer wants to purchase a property for $600,000 with a down payment of $50,000. How is the minimum down payment calculated for this price?
A borrower has a $400,000 mortgage at 5% annual interest, amortized over 25 years. If they make an additional principal payment of $10,000, what is the primary benefit?
A client is purchasing a $750,000 home. What is the minimum down payment required?
- → A borrower's variable rate mortgage has reached the trigger point. The outstanding balance is now higher than the original mortgage amount despite making regular payments. What is the most likely explanation and immediate consequence?
- → A self-employed borrower with irregular income is applying for a mortgage. Which documentation requirement is most likely to be emphasized by the lender?
- → In Ontario, under what circumstances can a mortgage lender place a property under Power of Sale proceedings?
- → Under what circumstances might a conventional mortgage (with 20% or more down payment) still be covered by mortgage default insurance?
- → Which scenario would require mortgage default insurance?
- → Which organization is the primary provider of mortgage default insurance for high-ratio mortgages in Canada?
- → Under CMHC's current requirements for homeowner mortgage loan insurance, what is the maximum Total Debt Service (TDS) ratio?
- → Which Canadian mortgage default insurer is a federal Crown corporation?
- → A client has a gross annual income of $80,000 and monthly debt payments of $500. Using a 32% gross debt service ratio, what is their maximum allowable monthly housing payment?
- → What happens to mortgage payments when interest rates decrease on a variable rate mortgage with fixed payments?
People Also Study
Real Property Law
60 questions
Contracts & Agreements
60 questions
Agency & Professional Ethics
60 questions
Land Use & Planning
50 questions
Related Study Resources
Helpful Resources
Previous Question
An Alberta buyer is purchasing an acreage property with a private water well and septic system. How do these features affect the buyer's ability to obtain CMHC-insured financing?
Next Question
An Alberta buyer wants to purchase a property for $600,000 with a down payment of $50,000. How is the minimum down payment calculated for this price?