After years of hard work in their family business and by making
careful investments, Mary and Joe are in a position to help their
married daughter, Isabel, and her husband, Bob, buy their first
house together. Although Mary and Joe are extremely fond of their
new son-in-law, they are concerned that the younger couple do not
have a prenuptial agreement. With the knowledge that approximately
43 per cent of marriages end in divorce in Canada, Mary and Joe
want to ensure that their investment in their daughter's new
family remains in the family. With these factors in mind, what are
the various alternatives for Mary and Joe to help Isabel and Bob
buy their first home?
If Isabel and Bob buy a home for $500,000, they could each take
advantage of the First-Time Home Buyers Plan (HBP) to reduce the
mortgage amount to $450,000. The HBP allows a taxpayer and his/her
spouse or common-law partner to each withdraw up to a maximum of
$25,000 from their RRSP to purchase their first
