Posted on: 11th Jun, 2007 11:51 am
I would like to know about RRSP mortgage loans. How do they work? What products are there?\" How big they are (any market share data)?
Hi Valerie,
Welcome to the forums.
The RRSP mortgage is a loan taken out from the registered retired savings plan (RRSP) of an individual . The RRSP Homebuyer's plan allows home buyers to take out as much as $20,000 from their savings plan. The plan allows for a year's grace before the home buyer starts making payments at a certain rate of interest.
Hope I could help you.
Welcome to the forums.
The RRSP mortgage is a loan taken out from the registered retired savings plan (RRSP) of an individual . The RRSP Homebuyer's plan allows home buyers to take out as much as $20,000 from their savings plan. The plan allows for a year's grace before the home buyer starts making payments at a certain rate of interest.
Hope I could help you.
I would differ with what Sarah has mentioned.
In fact, the Home Buyer's Plan is typically offered to first time buyers. But other home buyers can also avail loans from their savings plan. RRSP loans offered to home buyers going for a second time purchase require that the loan funds should be kept as a deposit in a registered self-directed fund.
While repaying the loan, the lender has to pay off the loan with the interest. And, one has to pay costs of setting up the self directed RRSP.
In fact, the Home Buyer's Plan is typically offered to first time buyers. But other home buyers can also avail loans from their savings plan. RRSP loans offered to home buyers going for a second time purchase require that the loan funds should be kept as a deposit in a registered self-directed fund.
While repaying the loan, the lender has to pay off the loan with the interest. And, one has to pay costs of setting up the self directed RRSP.
For the market share data, well, if you can give me some time, I shall try to find out. As far the types of RRSP loans are concerned, they are basically of two types - fixed and variable.