Invest in Private Mortgages
Investing in private mortgages provides a regular income stream, tangible security and a real return to the investor that is superior to bank deposits, GIC’s and bonds. They are an eligible RRSP investment that is tax sheltered and you can invest the interest over and over.
Advantages:
No Cost to You
The borrower is required to pay the costs to have the mortgage registered against the title to their property. The investor simply sits back and goes about cashing the monthly payments without incurring costs.
Monthly Income
A mortgage will generate cash flow each and every month. The amount of the monthly payment will depend on the size of the mortgage, interest rate and amortization period.
Capital Protection
There is low risk associated with mortgage investments. They are secured by the real estate property if the borrower is unable to make payments.
Invest My RRSP
Are you unsatisfied with the performance of your registered investment portfolio?
Are you considering using your self directed registered plans 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, your entire profit will benefit from the tax deferral of your RRSP. This will create a regular source of funds that you can choose to re-invest. A Trustee approved under the National Housing Act must administer an RRSP mortgage such as, TD Waterhouse, Canadian Western Trust or B2B Trust.