Samuel and Samantha were married 3 years ago. Since then, they have been looking for a house and everything has been out of their price range. They finally decided to buy a home that was affordable but that needs a lot of renovations. Both are quite handy and they are excited about moving forward. It is April 2, 2024 and later this afternoon, they will be closing on the offer for this new home. Both are looking to withdraw from their respective Registered Retirement Savings Plan (RRSP) under the Home Buyer’s Plan (HBP). Over the years Samantha has contributed $33,050 to her RRSP, while Samuel has contributed $36,320 to his RRSP. Samantha has invested wisely in mutual funds, as a result, as of today, the market value of her RRSP is $36,650, while Samuel's has had a few losses in some of the stocks he invested in, resulting in a market value of $32,350. How much can they withdraw today from their RRSP's under the HBP to use as their downpayment? Hint: The withdrawal limit is $35,000 per person ($70,000 per couple).
Samantha can withdraw $35,000 from her RRSP since the market value is higher than her total contributions ($36,650 > $33,050).
Samuel can withdraw $32,350 from his RRSP since the market value is lower than his total contributions ($32,350 < $36,320).
Therefore, they can withdraw a total of $67,350 ($35,000 + $32,350) from their RRSPs under the HBP for their downpayment.