5 Replies Latest reply on Jul 12, 2013 2:55 PM by Sharon

    Hold your own mortgage

    LACORRJC
      I don't know if it makes sense in the States, but In Canada, we have arranged through our bank to have our mortgage as one of our investments within the Registered Retirement Savings Plan (RRSP) of my wife.  We are, in essence, making our monthly mortgage payments into my wife's RRSP.  It has, of course, to be done at "arm's length" at  a reasonable rate of interest.
        • Re: Hold your own mortgage
          ras3496
          Did you payoff the bank from your wife's retirement account?
            • Re: Hold your own mortgage
              LACORRJC
              ras3496 said...
              Did you payoff the bank from your wife\'s retirement account?
              No, it was a completely new mortgage after a move to Ottawa.
                • Re: Hold your own mortgage
                  Mary515
                  I would love to hear from an expert on this topic.
                  Sounds like an only-in-Canada thing, but who knows?
                   
                  For example, can I fund my own mortgage using my 401(k) as collateral somehow?
                   
                    • Re: Hold your own mortgage
                      LACORRJC
                      Mary515 said...
                      I would love to hear from an expert on this topic.
                      Sounds like an only-in-Canada thing, but who knows?
                       
                      For example, can I fund my own mortgage using my 401(k) as collateral somehow?
                       
                      I don't see why your 401K investments should not include your own mortgage.  We hold our corresponding investments with a brokerage house, Scotia McLeod, so we broached the subject with our broker, and he helped us arrange it through their internal experts.  "Unusual but perfectly feasible" was the impression we got, and it has worked smoothly for the last 10 years.  Both the IRS and Rev. Canada have had no objection.  We're dual citizens.

                      • Re: Hold your own mortgage
                        Sharon
                        I don't understand this.
                        Either you own your home outright or you don't.
                        Either you have a loan on it  or you don't.
                        How can your retirement fund your mortgage?
                        I can understand how you can use your retirement to pay your mortgage, or get a relative to pay it off and loan you the money at a reasonable mortgage rate, but how can you fund your own?
                        Is this a reverse mortgage like in the states?