Barrie Mortgage Agent
Seniors Issues
Mortgage Agent, Level 2. Brokerage 10801
Elder Planning Counselor
Certified Equifax Credit Professional
Certified Reverse Mortgage Specialist
Self-Directed Mortgages
You may wish to hold a mortgage as an investment within your portfolio. With returns typically higher than GICs of a comparable term. Self-Directed Mortgages are an attractive asset, providing higher returns in exchange for the additional risk.
Canadian tax regulations allow self-directed Registered Retirement Savings Plans (RRSP), Registered Retirement Income Funds (RRIF), Tax-Free Savings Accounts (TFSA), Locked-In Retirement Accounts (LIRA), and Life Income Funds (LIF) to be used for a mortgage investment.
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Registered plans are not legally allowed to own a piece of real estate directly; however, they are able to lend money secured on title by a mortgage on a residential or commercial property. Certain conditions apply when investing in self-directed mortgages.
Arm's Length Mortgage
What is an Arm's Length Mortgage? One of the investments which an individual is permitted by CRA to hold in their Self-Directed Plan including Locked-In Plans, is an investor mortgage called an Arm's Length Mortgage. In this scenario, you are lending money from your registered Self-Directed Account to a borrower. The mortgagee and, mortgagor are at “arm's length” as defined in the Income Tax Act, section 251/252. Not related by blood, adoption, or marriage..
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Eligible Investments
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New purchases and re-finances
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Up to 90% Loan-to-Value (LTV)
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Mortgage insurance is not required
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Mortgages are required to be on real property (residential or commercial) located in Canada (excluding Quebec) registered in Land Title Office.
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Rental properties.
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Raw land is eligible however leased land is not
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Mortgage Funding
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1st, 2nd, or 3rd mortgages
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One mortgage can be funded using multiple plans
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Each plan will be administered separately as if the mortgages were unrelated
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The interest rate (minimum of 2% and maximum of 30%),
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Maximum term 10 years),
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Payment details: blended (principal and interest) or interest only payments are permitted.
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Professional Advice Recommended
A mortgage investment is a commercial transaction that involves the identification, consideration and evaluation of various risks. We strongly recommend that you obtain professional advice in connection with any mortgage investment
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Learn More
Please contact us to learn more about self-directed mortgages.
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