RRSP Mortgages
RRSP Mortgages
RRSP Mortgages
Olympia Trust
Does this just work with RRSP money, or can I use cash to invest in
Mortgages?
You can absolutely use cash to invest in mortgages, or you could learn how to invest in real
estate yourself, or if you prefer a hands-off approach, invest with a partner via Joint
Ventures.
A STEP-BY-STEP GUIDE
1) Go to a Canadian Trust company and open a selfadministered
RRSP account. There is a list of contacts below to help you locate the representative
nearest you.
2) Transfer your RRSP or RRIF or LIRA funds to your selfadministered account.
3) Determine whom you are lending money to. Do your due diligence on the borrower
and the property.
4) Determine the type of mortgage (is it a first or second mortgage?) and negotiate the
terms, conditions and interest rate.
5) Take the mortgage commitment to a lawyer. If the funds are less than $50K, one
lawyer may represent both parties, otherwise, legally two lawyers have to be involved.
6) Complete and sign the mortgage commitment. The lawyer will register the mortgage
on title.
7) Fill out and sign an Arms Length Mortgage Package with your Trustee of choice.
8) Set up an automatic payment system with the borrower, and watch the monthly
returns go into your account.
LIST OF TRUSTEES
1. Olympia Trust
Does not administer SDRRSP Mortgages on properties located in QUEBEC
http://www.olympiatrust.com/plans/
1-877-565-0001
2. Canadian Western Trust
Does not do business in QUEBEC
http://www.cwt.ca/iris/individuals/default.htm
1-800-663-1124
Sources:
This information has been discussed with our lawyer, accountant and mortgage broker.
Disclaimer:
The content contained herein is for informational purposes only, and is the opinion of the
authors only. The authors are not responsible for nor verified the accuracy on the site of any
links contained herein which are provided for convenience only. Particular investment
strategies should be evaluated relative to each individuals objectives and in consultation
with their advisor. The information contain herein should not be relied on, or be a substitute
for professional accounting, investment or legal advice. Please consult your legal and tax
advisor prior to implementation