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Financing, Mortgages and Insurance What options are best for you and your situation?


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Old 2019-08-26, 08:10 AM
eastendguy eastendguy is offline
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Default Is there any way to purchase an investment property and make it count as an RSP?

Any accountants on here?

I am looking to build duplex but would like my 20% down payment to count as an RSP. Is there any way to do this? Perhaps thru a corporation and make it count as a qualified investment?
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Old 2019-08-26, 08:35 AM
eastendguy eastendguy is offline
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I'll add a second question.

If I create a corporation and invest it in, would that count ?
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Old 2019-08-26, 08:47 AM
OttawaC OttawaC is offline
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You can invest in mortgages with a Self Directed RRSP (https://retirehappy.ca/self-directed-rrsps/), but I don't know if that is exactly what you are looking for. You may want to research self directed RRSPs to see if it meets your needs.
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Old 2019-08-26, 09:48 AM
eastendguy eastendguy is offline
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So the scenario would be to build a duplex for which I put 20% down (required for this type of property).

I would like my 20% down payment that is coming from me personally to count as an RRSP investment so that I save on my taxes up front this year to have more investment money while I need it and build a second unit. Say 30k at 37% tax bracket that would be close to an 11k+ in investment money available to me.


It seems I cannot just open a corporation and count the investment as a qualified investment.

https://www.canada.ca/en/revenue-age...ifs-tfsas.html

Theres gotta be a way!! I don,t get why the CRA wouldn't allow investment properties. I can see a loophole if they allowed people to open corporations and count that as qualified investment but an investment property should be eligible. We are in need of rental housing. My friends investing in stocks can make it count as an RRSP so this should be eligible as well and helps out with the housing crisis on top of that.

Last edited by eastendguy; 2019-08-26 at 09:53 AM.
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Old 2019-08-27, 05:14 PM
oakvillehomeowner oakvillehomeowner is offline
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you can't use your RSP to buy rental property - https://lmgtfy.com/?q=can+i+use+my+r...l+property&p=1

Last edited by oakvillehomeowner; 2019-08-27 at 05:17 PM.
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Old 2019-08-27, 06:47 PM
eastendguy eastendguy is offline
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Google searches are showing me no but perhaps thru a corporation there is a way. An accountant will be able to help, was wondering if there are any on here that could say.

Our gvt should definitely allow this. It would incite people to create rental offerings. The offerings are pretty scarce right now.

Sometimes we gotta think outside the box but always within the limits of the law

If someone is buying stocks, others should be just as able to invest in property and benefit from the tax savings RRSP's can offer. Rentals benefit everyone!

Last edited by eastendguy; 2019-08-27 at 07:06 PM.
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Old 2019-08-28, 01:49 PM
oakvillehomeowner oakvillehomeowner is offline
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accountants wouldn't (and shouldn't) give professional advice on a web forum.

keep in mind that your RRSP cannot leverage. if you did what you wanted and the housing market crashed, your RRSP would owe more than it had in assets. that cannot be allowed to happen. stocks can never drop below zero.
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Old 2019-08-28, 02:00 PM
oakvillehomeowner oakvillehomeowner is offline
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As for incentives to create rental housing, the biggest issue with that these days is the Landlord and Tenant Act. Record low interest rates should boost supply, but it's so risky renting that many property owners are choosing short term rentals instead.
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