WHO qualifies as a potential “RRSP-Mortgage” investor?
There are three basic categories of people qualified to participate in this type of investment. They are:
- Current RRSP account holder (people who have their RRSP account somewhere already)
- New RRSP account holder (people who have cash to put into their RRSP but don’t have an account yet)
- Those with RRSP contribution room (people who have not made contributions, but have ‘credits’ that have accumulated – see your tax return)
An Arm’s Length Mortgage is available to people who have these types of registered investment accounts that are held at financial institutions:
- RRSP: Registered Retirement Savings Plan
- RRIF: Registered Retirement Income Funds
- LIRA: Locked In Retirement Account
Eligible investments that can be used for Arm’s Length Mortgages include:
- Mutual Funds
- Term Deposits
- Gold & Silver Certificates
- Equity Linked Notes
- Guaranteed Income Certificates (GICs)
Arm’s Length Mortgages are eligible for ALL types of properties (residential, commercial, industrial, vacant / raw land, recreational) but NOT for mobile homes or house boats (because the property must be registered in the land registry system / land titles).
One caveat: the property for which the mortgage will be used MUST be located in Canada.
More than one lender can have an Arm’s Length Mortgage on the same real estate (for example, one person holds a first mortgage while another person holds a second mortgage, or two people pool their money and hold a first mortgage together).
Arm’s Length Mortgages are exactly what the name implies: ARM’S LENGTH—they CAN’T be used for self, parents, siblings, spouse, children, and in-laws.
If you’d like to learn more or if you would like to invest your RRSPs in other people’s mortgages, please fill out our expression of interest and one of our agents will be in touch with you.
Interested? Fill out an Expression of interest »
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