If you’re looking for a potential great way to invest in real estate, you need to learn what is a self directed mortgage. A self directed mortgage is a great option for people that have savings in RRSP’s and want to invest in real estate through mortgages. You can use this method to invest in your own home, or an investment property.
This type of mortgage financing can be considered an arm’s length transaction, or a non arm’s length transaction and both are different. The way you choose to invest in a self directed mortgage will also determine whether it is arm’s length, or non arm’s length. Most people who invest in self directed mortgages usually have quite a bit of money saved in their RRSP’s and they want to use this to their advantage.
Self directed mortgages are often great options for homeowners when buying their own home with some advantages. But we should also point out that they do come with some risks. This is considered a type of method to invest in real estate and sitting down with an experienced mortgage broker, financial planner, and tax lawyer will help you better understand your obligations, and how to maximize your investment.
For more information on financing or if you need a mortgage broker, contact Tracey Brock of Dominion Lending Centres.
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