Mortgage in a RRIF?
Question: I took early retirement at 55. We are mortgage clear, but are now looking to purchase in the area we wish to retire. I was planning on drawing the minimum from my RRIF as our other pension plans should be more than sufficient at age 65 but I read that your RRIFs can be used to invest in your own mortgage. Do you advise using your RRIF for this? Could you clarify.
Holding individual mortgages in a RRIF can be tricky and expensive. If the mortgage is on your home or a family member’s, set-up costs will be high. If it’s a third party mortgage obtained through a mortgage broker, there may be fees to pay. Also, some mortgage brokers have run into financial difficulties, resulting in large losses for investors, so you have to be careful.