For all Canadian, there is an option to save money in federal government registered accounts such as RRSP, TFSA or RESP, LIF, and LIRA. They are also known as Registered funds. Moreover, if you have funds in these said accounts you can invest them in mortgage also to yield more profits. Further, the income generated from this type of mortgage investment falls under tax shelter. However, as an investor you should be fully aware of the taxation current rate and which fund is eligible for which investment from a different registered account. In this blog post, we will shed a light on which registered account can be used for which type of mortgage investment.
The Registered Retirement Income Fund (RRIF) is a retirement saving plan for Canadians in which taxable income is deferred. Additionally, one can move funds from their RRSP account to other pension plans (RPP and PRPP) and these saved funds can be invested in a mortgage. Plus, the provider will pay the money after lending the funds.
Registered Retirement Saving Plan (RRSP)- is a federal government account in which Canadian residents employed and self-employed can save their money and grow funds tax-free. Only marginal tax is deducted when money is withdrawn. And the money in this account can be used for mortgage investment.
Locked-In Retirement Account (LIRA)- It is like an RRSP account, but you cannot withdraw the money until you retire. The funds in this type of registered account are locked in, however, you can invest the funds from LIRA to mortgage, but the income or interest earned will go into the LIRA account only.
With that said, if you are looking to grow your saving with minimum risk then investment in first mortgage and second mortgage are the safest options. We at Morex Capital are offering smart ways to the individual like you to invest money with no risk and secure your future. Do you have any queries? Talk to our certified experts now!