Comments on: Holding your own mortgage inside your RRSP http://wheredoesallmymoneygo.com/holding-your-own-mortgage-inside-your-rrsp/ A personal finance blog written by Preet Banerjee Wed, 23 May 2012 05:38:46 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: RIFFER http://wheredoesallmymoneygo.com/holding-your-own-mortgage-inside-your-rrsp/#comment-12091 RIFFER Sun, 04 Mar 2012 21:34:37 +0000 http://symbiantcapital.com/2007/11/13/holding-your-own-mortgage-inside-your-rrsp/#comment-12091 Preet. I have my SDMortgage already set up in a RRIF account and its is generating income at the prescribed withdrawal rate based on age. I am 67. Since this is generating taxable investment income, to supplement my pension, can I not deduct the interest  on the mortgage as an expense? This will be the same issue for anyone when they are forced to set up a RRIF(age 71). Preet. I have my SDMortgage already set up in a RRIF account and its is generating income at the prescribed withdrawal rate based on age. I am 67. Since this is generating taxable investment income, to supplement my pension, can I not deduct the interest  on the mortgage as an expense? This will be the same issue for anyone when they are forced to set up a RRIF(age 71).

]]> By: Question http://wheredoesallmymoneygo.com/holding-your-own-mortgage-inside-your-rrsp/#comment-12084 Question Tue, 28 Feb 2012 18:17:21 +0000 http://symbiantcapital.com/2007/11/13/holding-your-own-mortgage-inside-your-rrsp/#comment-12084 Hello, we have recently purchased a condo as an investment property that we will rent out to my parents. My inlaws have the full value of the condo (200k) available in an RRSP and are willing to willing to use it to do a non-arms length mortgage for us. I'm still researching this idea, but I was hoping you would be able to offer some insite and opinions on this. Thank you.      Hello, we have recently purchased a condo as an investment property that we will rent out to my parents. My inlaws have the full value of the condo (200k) available in an RRSP and are willing to willing to use it to do a non-arms length mortgage for us. I’m still researching this idea, but I was hoping you would be able to offer some insite and opinions on this. Thank you.   
 

]]> By: Preet http://wheredoesallmymoneygo.com/holding-your-own-mortgage-inside-your-rrsp/#comment-12071 Preet Fri, 24 Feb 2012 06:23:27 +0000 http://symbiantcapital.com/2007/11/13/holding-your-own-mortgage-inside-your-rrsp/#comment-12071  @Scott O If you max your RRSP you won't get as big of a refund as if you spaced out the contributions. You'll fall through a bunch of tax brackets and might get quite a bit less than you were expecting. Personally, I'd be leaning towards just paying off the mortgage and keeping things simple, but I can't give specific advice with only a few facts on hand. Good luck!  @Scott O If you max your RRSP you won’t get as big of a refund as if you spaced out the contributions. You’ll fall through a bunch of tax brackets and might get quite a bit less than you were expecting. Personally, I’d be leaning towards just paying off the mortgage and keeping things simple, but I can’t give specific advice with only a few facts on hand. Good luck!

]]> By: Preet http://wheredoesallmymoneygo.com/holding-your-own-mortgage-inside-your-rrsp/#comment-12070 Preet Fri, 24 Feb 2012 06:19:47 +0000 http://symbiantcapital.com/2007/11/13/holding-your-own-mortgage-inside-your-rrsp/#comment-12070 Sorry - I don't have the answer for this. Please do let us know if you find out. Sorry – I don’t have the answer for this. Please do let us know if you find out.

]]> By: Preet http://wheredoesallmymoneygo.com/holding-your-own-mortgage-inside-your-rrsp/#comment-12069 Preet Fri, 24 Feb 2012 06:18:19 +0000 http://symbiantcapital.com/2007/11/13/holding-your-own-mortgage-inside-your-rrsp/#comment-12069 Sorry for the delayed reply. As you may know, it's tough to give specific advice with so few facts. If you held the mortgage in your RRSP you might get a lower return than what you seem to be getting now, but a lower interest rate on your mortgage which means it could be paid back sooner. If you do the VTB, that might be a higher rate than what's currently available.  Sorry for the delayed reply. As you may know, it’s tough to give specific advice with so few facts. If you held the mortgage in your RRSP you might get a lower return than what you seem to be getting now, but a lower interest rate on your mortgage which means it could be paid back sooner. If you do the VTB, that might be a higher rate than what’s currently available. 

]]> By: Scott O http://wheredoesallmymoneygo.com/holding-your-own-mortgage-inside-your-rrsp/#comment-12044 Scott O Sat, 18 Feb 2012 19:51:32 +0000 http://symbiantcapital.com/2007/11/13/holding-your-own-mortgage-inside-your-rrsp/#comment-12044 Preet, I have recently discovered this borrowing, strategy threw a book I was reading. Now my question is I’m 29 I have a mortgage of 178,000.00 on a house worth 425,000.00. I have 50,000.00 in RRSP’s now. I’m set to receive a final payment for a company I owned of 180,000.00 that is already taxed. I have a max contribution to my RRSP’s of 98,000.00. Would it be better to max out my RRSP and then hold my mortgage threw my RRSP’s or just pay off my mortgage? Thank you Preet, I have recently discovered this borrowing, strategy threw a book I was reading. Now my question is I’m 29 I have a mortgage of 178,000.00 on a house worth 425,000.00. I have 50,000.00 in RRSP’s now. I’m set to receive a final payment for a company I owned of 180,000.00 that is already taxed. I have a max contribution to my RRSP’s of 98,000.00. Would it be better to max out my RRSP and then hold my mortgage threw my RRSP’s or just pay off my mortgage?

Thank you

]]> By: Lenny http://wheredoesallmymoneygo.com/holding-your-own-mortgage-inside-your-rrsp/#comment-11900 Lenny Thu, 12 Jan 2012 15:47:57 +0000 http://symbiantcapital.com/2007/11/13/holding-your-own-mortgage-inside-your-rrsp/#comment-11900 Hi, I have a question I hope anyone of you can answer to me. I have a Self Directed RRSP with more than 700K, I've been lucky investing in stocks for the past few years. I stopped my rrsp contributions to that account when I joined my current employer 3 years ago, with my current job I have a RRSP group plan with a different institution. I do contribute to the group plan and my company matches my contributions up to 6%. My question is: By holding a mortgage inside my SD-RRSP, and then start paying my mortgage (through contributions). Are those payments consider actual RRSP contributions, that I'd need to report when filing my tax return? What I mean to say is I would like to continue taking advantage of my RRSP group plan and report those as my RRSP contributions. Many thanks. Sorry for the long posting, and my mistakes. Hi, I have a question I hope anyone of you can answer to me. I have a Self Directed RRSP with more than 700K, I’ve been lucky investing in stocks for the past few years. I stopped my rrsp contributions to that account when I joined my current employer 3 years ago, with my current job I have a RRSP group plan with a different institution. I do contribute to the group plan and my company matches my contributions up to 6%.

My question is: By holding a mortgage inside my SD-RRSP, and then start paying my mortgage (through contributions). Are those payments consider actual RRSP contributions, that I’d need to report when filing my tax return? What I mean to say is I would like to continue taking advantage of my RRSP group plan and report those as my RRSP contributions.

Many thanks. Sorry for the long posting, and my mistakes.

]]> By: Jayne http://wheredoesallmymoneygo.com/holding-your-own-mortgage-inside-your-rrsp/#comment-11891 Jayne Wed, 11 Jan 2012 17:54:34 +0000 http://symbiantcapital.com/2007/11/13/holding-your-own-mortgage-inside-your-rrsp/#comment-11891 As per above, its my understanding you can't old "vacant" land in your RRSP as I would like to do as they are suggesting. Only "arms-length" transactions qualify for vacant land. Could you clarify this...very important to me as could lose the land for lack of financing otherwise. Thank you, As per above, its my understanding you can’t old “vacant” land in your RRSP as I would like to do as they are suggesting. Only “arms-length” transactions qualify for vacant land. Could you clarify this…very important to me as could lose the land for lack of financing otherwise.
Thank you,

]]> By: Hudson http://wheredoesallmymoneygo.com/holding-your-own-mortgage-inside-your-rrsp/#comment-11717 Hudson Tue, 03 Jan 2012 07:49:03 +0000 http://symbiantcapital.com/2007/11/13/holding-your-own-mortgage-inside-your-rrsp/#comment-11717 Preet Heres my situation. Looking to purchase a our first house. Purchase Price $550K My Current assets RRSP $350K getting 4.5% return mostly strip bonds Cash $100K Heres the kicker... Owner will finance property for 5 years at 4% with 125k down we can do for 20-25years. Would you still set up a RRSP Mortgage or take the Vendor Take Back Mortgage? Im 37 years old. Thank you very much. Enjoyed learning from this page. Hudson Preet

Heres my situation.

Looking to purchase a our first house.

Purchase Price $550K

My Current assets
RRSP $350K getting 4.5% return mostly strip bonds
Cash $100K

Heres the kicker…
Owner will finance property for 5 years at 4% with 125k down we can do for 20-25years.

Would you still set up a RRSP Mortgage or take the Vendor Take Back Mortgage?

Im 37 years old.

Thank you very much. Enjoyed learning from this page.

Hudson

]]> By: Preet http://wheredoesallmymoneygo.com/holding-your-own-mortgage-inside-your-rrsp/#comment-11335 Preet Mon, 12 Dec 2011 18:21:57 +0000 http://symbiantcapital.com/2007/11/13/holding-your-own-mortgage-inside-your-rrsp/#comment-11335 Hi Sheng - not sure. You may want to check with a cross border specialist. Hi Sheng – not sure. You may want to check with a cross border specialist.

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