General Overview

The Canada Customs and Revenue Agency (CCRA) lists mortgages as an eligible investment in a Registered Retirement Savings Plan (RRSP) and that means your client can hold this investment in their self-directed registered plan. When they hold this investment, they become the ‘lender’ and the loan proceeds come from cash held inside the self-directed RRSP. Your client’s investment then becomes the mortgage receivable and it earns interest income as contracted in the mortgage agreement or charge.

Understanding all the advantages and disadvantages of holding this investment type in your client’s plan is important before investing. Be sure to review these materials before recommending this investment.

For more information on Self-Directed Mortgages please click on the following links to download additional files in pdf format (Adobe Acrobat portable document format)

> Self-directed Registered Mortgages Policy and Procedures for financial advisors