The Planholder must not be related to the mortgagor (i.e. borrower) by blood, marriage or adoption. The mortgagor cannot be a company owned or controlled by the Planholder or a relative of the Planholder.
A Self-directed RRSP account is opened with the Trust Company, the administrators and trustee for the Planholder. The account will occur cost for the set-up and Trustee fees; however these fees are ultimately paid by the borrower.
The Planholder’s current RRSP existing elsewhere are rolled over tax-free into the Self-Directed RRSP. The Planholder’s future RRSP contributions are made directly into the newly opened Self-Directed RRSP, and a top-up or new RRSP loan is made.
We will inform the planholder of a mortgage opportunity. Upon acceptance of the offer the planholder will sign all the necessary documents.
Upon all documents signed and accepted, the Planholder will authorize the trustee to release the required funds from the Self-Directed RRSP account to an appointed solicitor in trust for the selected mortgage on the subject property.
30 days after funding and every month (or quarter) thereafter, mortgage payments are automatically debited from the mortgagor’s bank account and deposited into the Self-Directed RRSP account by the trustee.
The trustee sends out statements to the Planholder showing all deposits, withdrawals and administrative charges on the Self-Directed account.