RRSP and Mortgages
Making your first down payment, moving to a new neighbourhood or downsizing when the kids leave home -- let your RRSP do the talking when it comes to mortgage financing.
Toronto area home buyers know just how expensive housing can be. At Axess Law, we understand you've sacrificed to get this far. We appreciate your home is a major investment.
Our mortgage lawyers partner with your bank or lending institution to make your housing dreams a reality and close real estate transactions using RRSP investments.
Leveraging RRSP Down Payments
Axess Law helps first-time home buyers leverage their RRSPs to make down payments.
Withdraw Up to $70,000
A Home Buyers’ Plan down payment gives you up to $70,000 towards a single family home or duplex from your very own RRSP savings account. You and a spouse or common law partner can pool your maximum withdrawals of up to $35,000 each, provided you have not lived in a home either of you owned for four years before applying. Lenders waive the four-year requirement for adults with disabilities.
What Homes Qualify
You can use your RRSP for detached or semi-detached homes, townhouses or condos, mobile homes, co-op housing shares or apartments, including duplex, triplex or fourplex units. You must agree in writing to purchase or build a home for your principal residence -- no cottages or commercial properties are permitted.
Take Up to 15 Years to Pay
Repay the full amount in one lump sum or take up to 15 years to repay yourself. Axess Law's mortgage refinancing lawyers tell you how to take advantage of the purchasing power in your RRSP.
Tax Tip
Pay no withholding tax if you repay the amount in equal annual repayments or be taxed on your 1/15th share if you defer repaying in any year. Home Buyer's Plan withdrawals do not affect annual RRSP deduction limits.
Put 5% Down with Mortgage Loan Insurance
Who doesn't want mortgage assistance if money is tight? High ratio mortgages give buyers with lower down payments a chance to get into Greater Toronto's high cost real estate market.
You can own a home worth up to $1 million for only 5% to 19% down when you purchase mortgage loan insurance -- far less than you would pay for a conventional mortgage. Default insurance covers your lender if the worst happens and you are unable to continue making mortgage payments. You can add the insurance premium to your monthly payments or pay it out in full with a single, lump sum payment.
Maximize your RRSP withdrawal by applying for a Canada Mortgage and Housing Corporation (CMHC), Genworth Financial or Canada Guaranty high ratio mortgage and keeping your down payment as low as possible. You'll pay more interest than with conventional mortgages, but have the added advantage of knowing your payments are more affordable, just when you need mortgage relief the most.
Get a RRSP Mortgage
If you have a substantial self-directed RRSP and don't mind paying higher interest rates, consider holding your principal residence mortgage in your RRSP. You get a low ratio mortgage in return (with a 20% down payment), but pay yourself interest instead of your banker.
Axess Law recommends RRSP mortgages as part of a diversified portfolio. You’ll have to factor in set up fees and charges to administer the RRSP annually, Plus CMHC mortgage loan insurance is mandatory, extra expense for you.
Google local lenders if you’re interested -- ask if they write RRSP mortgages. Axess Law can help discharge your current mortgage and complete legal documents to refinance your mortgages when you apply.
Co-shared Homes Using RRSPs
Co-sharing makes the most of your mortgage money. You and a friend or friends invest your RRSPs to make the down payment on a shared home. Provided you don't mind living in close quarters, you could split up common expenses like yard maintenance, housekeeping, property taxes and home insurance.
Of course, that means making a commitment to work through any conflicts and remain friends despite your differences. As long as you have a strategy for how shares in your new investment will be divied up or bought out in case of a split up, co-sharing can keep your home buying expenses way down. (Just in case, protect your interests by having Axess Law draft a cohabitation agreement for you.)
Why You Need a Lawyer
Our lawyers make land title transfers and mortgage transactions legal. Axess Law online real estate lawyers close the deal quickly and efficiently. Our low cost legal services for buying a new home or getting a RRSP mortgage to change residences are easy to afford.
Axess Law lawyers are notary publics and can witness and sign statutory declarations or mortgage discharge papers you may need to finalize your new home's financing. Your mortgage registration or discharging a mortgage in Ontario is complete in a week or so.
We research your property title and point out problems like mistakes on property surveys or records that can cost you dearly, now or in future when you go to sell.
Only a lawyer or notary lawyer can complete real estate deals in Ontario. Axess Law is available when you are, 7 days a week, day or evening, online or in person for sage mortgage and home buying legal advice.
Low Cost Flat Fee Legal Services
Our flat fees are all inclusive. Axess Law has no surprises or hidden charges. We refinance mortgages for $799.99 and up. You pay just $999.99 to buy real estate in Toronto area or $799.99 and up to sell homes.
Make Online or In Person Mortgage Appointments
Go online to video conference with our lawyer or notary public services anywhere you are in Ontario. Axess Law has open law offices in Toronto and the area, 7 days a week. Use our easy online booking form to make flexible day or evening appointments.
