How it Works:

The Planholder must not be related to the mortgagor (i.e. borrower) by blood, marriage or adoption. The mortgagor cannot be a company owned or controlled by the Planholder or a relative of the Planholder.

Step #1: A Self-directed RRSP account is opened with B2B Trust, the administrators and trustee for the Planholder. The account will occur cost for the set-up and Trustee fees; however these fees are ultimately paid by the borrower.

Step #2: The Planholder’s current RRSP existing elsewhere are rolled over tax-free into the Self-Directed RRSP. The Planholder’s future RRSP contributions are made directly into the Self-Directed RRSP, and a top-up or new RRSP loan is made.

Step #3: We will inform the planholder of a mortgage opportunity. Upon acceptance of the offer the planholder will sign all the necessary documents.

Step #4: Upon all documents signed and accepted, the Planholder will authorize the trustee B2B Trust to release the required funds from the Self-Directed RRSP account to an appointed solicitor in trust for the selected mortgage on the subject property. 

Step #5: 30 days after funding and every 30 days thereafter monthly mortgage payments or biweekly mortgage payments are automatically debited from the mortgagor’s bank account and deposited into the Self-Directed RRSP account by the trustee.

Step #6: The trustee sends out monthly statements to the Planholder showing all deposits, withdrawals and administrative charges on the Self-Directed account. 

Note:
Under Revenue Canada Guidelines Planholder account cannot yield more than 30% per annum.  In addition mortgages CAN be funded from a locked-in RRSP plan. All related cost is paid by the mortgagor/borrower.

For further information contact: 
Mike McCalla, AMP
Senior Mortgage Consultant
Tel: 416.496-1220 ext23 or 416.410-2150
Toll Free: 1-866.496-1220
Fax: 416.496-8666
Email: mike@4mortgages.ca