Preview Mode Links will not work in preview mode

Feb 1, 2019

Private Mortgages for your RSP’s or Cash Investments

 

We discussed Private Mortgages for your RRSP's or Cash Investments in Free Coaching Friday.

Most RRSPs are held by a deposit-taking institution that offers a variety of investment options. But in a self-directed RRSP, investors are free to choose other types of investment products, such as debt instruments. “In self-directed mortgages, you can use the money saved in your RRSP to fund mortgages".

For instance, if you had $100,000 in your RRSP, you could convert this investment into cash (this won’t trigger a tax hit) that you can then loan out (known as a non-arm’s length mortgage)—either to yourself, a family member a friend, or a stranger.

How do you do this?

There are strict rules. Any RRSP mortgage must be administered by an approved lender, known as a trustee such as Olympia Trust and the interest rate you charge, along with all loan conditions, must reflect normal commercial lending practices. Olympia Trust company allows up to 100% of the value of the property as a 2nd Mortgage.

To learn more, watch Free Coaching Friday live video on Facebook here.

 

https://ednakeep.com/