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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: MyPlanBLife on November 19, 2016, 07:17:40 PM

Title: Any fellow Canucks accessed their RRSP for a Non-Arm's Length Mortgage?
Post by: MyPlanBLife on November 19, 2016, 07:17:40 PM

To paraphrase our mighty leader, MMM, I have a "shitload" of money in my RRSP, and I'm trying to figure out how to get some of that $$ really working for me.  I'd like to liquidate $200,000 from my RRSP as a downpayent on an investment property without being penalized.  Any fellow Canadians applied for a "non-arm's length" mortgage before, and would you recommend going that route?  I bought my $310,000 condo cash, then slapped a mortgage on it to purchase an 3 bdrm investment property at $350,000, now would like to slap a mortgage on that house, and add $200,000 from my RRSP to purchase a third property of about $450,000. Is a non-arm's length mortgage a good plan? 
Thanks Gang!

Title: Re: Any fellow Canucks accessed their RRSP for a Non-Arm's Length Mortgage?
Post by: Goldielocks on November 20, 2016, 09:46:24 PM

I looked into it, and the fees did not make sense for funding my own mortgage, versus the low bank rates, even with the tax advantages, etc.

However, the peer to peer type lending market, if you are a player, can return more than the stock market, if you want to carry mortgages / secondary financing in your RRSP.  You do need a self directed RRSP that allows this, however.