Interest Rates on RRSP Mortgages

Podcast Episode 96:
“RRSP Mortgages.

In Canada, it is possible to use money held in a Registered Retirement Savings Plan (RRSP) to fund mortgages. While this strategy can yield a nice steady return on investment, there are rules in place that can make it a bit tricky to get into. One of those rules is that the lender (i.e., the person with the RRSP) must use a third party trustee to administer the mortgage. This Tale is about dealing with a couple of different trustees and their policies on interest rates. RRSP mortgages must legally be “commercially reasonable,” but apparently there is a lot of room for interpretation of what exactly that means…

 

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“Mortgage” image courtesy of NYPhotographic.com used under Creative Commons Attribution-Sharealike 3.0.

Getting Payments through a Trustee

house with cash register

Podcast Episode 85:
Hurry Up and Wait.”

When dealing with trustees or lenders, there are many things that can delay a transaction. The type of payment can trigger a processing hold, the shipping method can be slow or unreliable, and sometimes clerks just overlook things. If you need a certain result, in a specific amount of time, then you need to lock down every stage of the process! In this Tale, you’ll hear just how many things can go wrong with getting a lump sum payment on an RRSP mortgage. Our client was trying to receive payout money from the borrower, but almost everything that could go wrong did go wrong…

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Buying and/or selling Alberta real estate? Contact Barry now!

“Reverse Mortgage” image from https://www.aag.com/ is used under CC Attribution-ShareAlike 2.0