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?
Correct Answer
B) 5% of the first $500,000 ($25,000) plus 10% of the remaining $100,000 ($10,000) = $35,000
For purchase prices over $500,000 and under $1.5 million, the federal minimum down payment is 5% of the first $500,000 plus 10% of the portion above $500,000. For $600,000 that is $25,000 plus $10,000, or $35,000, so the buyer's $50,000 down payment exceeds the minimum. The 20% minimum applies only at $1.5 million or more.
Why This Is the Correct Answer
The minimum is calculated in two bands: 5% of the first $500,000 ($25,000) plus 10% of the $100,000 above it ($10,000), for $35,000. This band structure applies to prices up to $1.5 million, so it governs a $600,000 purchase.
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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?
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