Registered funds eligible for arms-length mortgage investments:
RRSP, RRIF, RESP, LIRA and TFSA.
Are you unhappy with your Registered Retirement Savings Plan (RRSP) investment returns?
Are you considering using your self-directed Plans portfolio to invest in private mortgages backed by Canadian real estate?
With a self-directed account, the RRSP plan becomes the mortgage holder. Each month a fixed income payment goes directly back to your RRSP account – tax free. As long as all payments are directed back to the self-directed RRSP account, the your entire profit is sheltered from tax. This will create a regular source of funds that you can choose to reinvest, without having to take from your savings or pay tax on. When the time comes to collect your RRSP, you will most likely will be in a lower tax category, which means you pay income tax at a much lower level. A trustee approved under the National Housing Act must administer an RRSP mortgage, such as Olympia Trust, TD Waterhouse, Canadian Western Trust, and B2B Trust. It is important to pick the one that will provide service to your satisfaction.
Mr. Konstantin Kuligin
VP Investors Relation
Private mortgage investor, educator, mortgage expert, motivation guru!
-Bonds and Debentures
-Term deposits and Guaranteed Income Certificates (GICs)
-Equity linked notes
-Rights and warrants
-Covered calls, long calls, puts, and LEAPS
-Gold and silver certificates
-Mortgages secured by real property
For example : A property costs $300,000. Available financing is a mortgage loan covering 80% of value (LTV) or $240,000. The required cash down payment is $60,000. A second mortgage is available from a private individual for an additional $30,000 of value a 90% (LTV), reducing the down payment to $30,000. As long as the cash flow from the property can support the second mortgage payments, this is smart real estate mortgage investing.
– Investing in mortgages is often less risky than mutual funds and stocks, because you are secured by both the borrower and the property.
– The lender has control over choosing the property and borrower to invest in.
– The lender has the freedom to negotiate the interest rates and terms with the borrower through the mortgage broker.
– An opportunity to invest in real estate without becoming the landlord and running after tenants is a smarter investment than owning the property and everything associated with ownership.
– Earn passive income while staying tax-sheltered.