An RRSP mortgage is a private mortgage agreed to between two parties. Similar to how banks lend money, an RRSP is able to lend money secured on title, by a mortgage on a property. RRSP holders with accumulated funds can lend RRSP funds to other parties for an attractive return. The mortgage cannot be for any property that you own directly or through blood, marriage or adoption (Income Tax Act rule). Lending money through an RRSP Mortgage does not trigger a tax penalty and the mortgage is held within a self-directed RRSP mortgage account. Mortgage lending is considered a safe and secure long-term investment with minimal risk. Done properly, RRSP mortgages can deliver steady long-term growth and solid net returns.
Will you leave the growth of your RRSP savings to erode with high management fees? You can boost your RRSP growth by becoming a lender – a mortgage holder on a property of another investor. We can help you understand the process and determine if an RRSP mortgage is a good option for your situation.