Who can facilitate an RRSP loan against a property?

[MarkTorgerson]

I am looking to make an RRSP loan to an individual secured against his property in which he has ample equity to cover the loan. The loan will have a specified interest rate and timeline. Who can facilitate this transaction? I have heard Olympia Trust has been used in the past. Has anyone executed this type of transaction and do they have a contact name? What type of fees were involved?



Thanks in advance,

 

[Thomas Beyer]

It has to be a mortgage, i.e. the RRSP becomes the lender. OT charges a setup fee for the mortgage ($100) and an annual fee for account ($150) and another annual fee for each mortgage ($120), and a lawyer will charge around $1000 to facilitate it, each way, such as Barry McGuire or RMLO in Edmonton. Takes about 2-3 month, faster if $s are already at OT. Contact [email protected] ... CWT, B2B Trust and some other institutions do it too. Perhaps check first with your current institution.

 

[MarkTorgerson]

Great info, thank you Thomas!

 

[Mark Baltazar]

I'm interested in learning more about RRSP loans. I have RRSPs that could amount to a good portion of project.

What are the guidelines? How does the transaction get executed?

Any info on this is very much appreciated.

I was told by a broker and conventional bank that RRSP loans or loans secured by RRSPs can't be done in Ontario.

 

[Thomas Beyer]

RRSP guidelines are Canadawide, not provincial.

Did you phone OT or any of the trustees ? What did they say ? Each trustee has there own guidelines ( say re LTV and interest rates) and paperwork.

Lawyer will facilitate document and $ flow. Easy, but paper and time intensive. Budget several weeks after money is at trustee, and a few more weeks to get money from a trustee that does not do RRSP mortgages to one that does.

 

[Alvaro Sanchez]

Just contact the trustee and see what they need in terms of paperwork as they have their own guideline and fees, etc.

 

[Mark Baltazar]

Thank you. I will call around and pass on the learning.