How doe`s one use RSP`s to make down payment on a rent to own?

[Mike200]

Greetings everyone;

I have several investors with funds inside rsp`s, that would like to invest in either JV buy/holds and rent to own`s.

I keep hearing that RSP`s can only be used as 2nd mortgages. Or even as entire mortgages but the process cannot use the RSP as a down payment and then obtain bank/mortgage company financing.

Traditional use is such that the RSP is liened/registered as a mortgage against property and the lawyer makes the arrangement for a substantial fee and CCRA keeps their mitts off the tax. Any growth stays inside RSP. Therefore RSP is intact. Essentially, RSP is used as a mortgage.

Could someone give me an idea of how to do this? If its possible to use RSP as down payment and then finding financing elsewhere for the balance in either rent to own`s or buy/hold`s?
Please and thanks,
Mike
mike@wealthrealized.ca

 

[GaryMcGowan]

You answered your own question, NO, RRSPs can only be used in arms length lending. Sometimes in non-arms length but it will have to be CHMC insured.
Only first time home buyers have the privilege of using their RRSP as down payment.