Not all property investors know, or take advantage of, the fact that RRSP savings can be tapped to assist with mortgages and down payments. Individuals have leeway to do so, and this gives them the freedom to do a little creative loan structuring. Cash, as well as TFSAs also can be part of the package.
If an investor is looking for some private funding for investment, it is out there. That is good news, because banks, especially commercially leaning ones such as CIBC may be scaling back on the investment mortgage deals. At least, they will no longer be actively pursuing those deals in such an aggressive fashion. That means those discounts on variable rates are set to vanish.
Even seasoned investors are looking to the private sector for funding, and they are finding that this way of financing is attractive. RRSP holders who decide to invest from their portfolios find better returns without excess management fees. As an example, if a lender is interested in a ten percent interest payment on a monthly basis, the investor may counter with a 12 percent payment to be paid annually. Negotiations could also include a balloon payment to be made at the loan’s term. Lenders and investors have the freedom to come up with the best deal that is advantageous to both parties.
