Author: Paul Blacquiere
Category: Mortgages
Reading time: min

Question

I already know how to use my RRSP money with the Home Buyer’s Plan to buy my own property. Why do I need to know about RRSP mortgages and your RRSP course?

Answer

There are actually 3 different ways to use RRSP money to invest in property. Each one is used in a different way:

  1. Home Buyer’s Plan – you borrow from your own RRSP to buy your first home, withdrawals must be repaid over no more than 15 years
  2. Non-Arms Length Mortgage – you borrow from your own RRSP or that of a family member, money is borrowed in the form of a mortgage and must be insured by CMHC, you must qualify through a bank, as you do with a normal mortgage (CMHC’s guidelines)
  3. Arms Length Mortgage – you borrow from someone else’s RRSP (must be unrelated), money is borrowed in the form of a mortgage, no insurance or qualification is required

As you can see, each method is quite different.  I recommend everyone take advantage of the Home Buyer’s Plan to help buy their first home – it’s a great program.

An Arms Length Mortgage is the most flexible way to use RRSP money, with very few rules compared to Non-Arms Length Mortgages.  I teach exactly how to use these types of mortgages in my RRSP Mortgages course.

About the author 

Paul Blacquiere

Paul is an entrepreneur, investor, speaker, educator and publisher. He is founder and editor at Spirepoint Wealth, a financial education company dedicated to helping people improve their finances, create more cash flow and build long-term wealth.

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