Users' questions 

Can I use my RRSP to invest in real estate?

Leia Doyle

Can I use my RRSP to invest in real estate?

Unfortunately, you can’t hold real estate within a registered retirement savings plan (RRSP). The Canadian government designed this account for assets such as cash, GICs, and stocks (known as “qualified investments”). Using your RRSP to buy investment property would mean selling these assets and withdrawing the cash.

Can RRSP be self-directed?

A Self-directed RRSP is an RRSP account that allows you to hold many different types of investments under consolidated within one single account. Self-directed RRSPs give you more investment freedom and control. Contrary to the name, self-directed RRSPs do not have to be self-managed.

Is Wealthsimple RRSP self-directed?

Grow wealth with humans + technology. Wealthsimple Invest is automated investing powered by real humans to give you advice. Get started now. A self-directed RRSP is a type of RRSP that can hold a number of different investment types under one roof.

Can I use RRSP to buy foreign property?

As the RRSP Home buyer’s plan will not allow you to withdraw funds for vacation property, your only option to use RRSP funds would be through a regular withdrawal that is fully taxable.

Can I hold stocks in my RRSP?

Yes, you can buy and hold stocks in an Registered Retirement Savings Plan (RRSP) providing it is considered a qualified investment by Canada Revenue Agency (CRA). Funds held within an RRSP can grow tax free until withdrawn where it is taxed accordingly.

Can I use my RRSP to pay down my mortgage?

For those tired of paying mortgage interest to a bank, there is a technique that allows you to use your retirement savings to help buy your home or even finance a cottage or investment property. Those payments go directly into your RRSP and you keep all the interest.

Can you have 2 Wealthsimple accounts?

Yes, you can have multiple Joint Wealthsimple Save accounts with different co-owners or multiple accounts with the same co-owner.

Can I use my RRSP to buy my first house?

With the federal government’s Home Buyers’ Plan, you can use up to $35,000 of your RRSP savings ($70,000 for a couple) to help finance your down payment on a home. To qualify, the RRSP funds you’re using must be on deposit for at least 90 days. You must also provide a signed agreement to buy or build a qualifying home.

Can an RRSP hold a mortgage?

Homeowners can hold their mortgages inside their RRSPs and make interest payments to themselves — not the bank. But, experts say, the associated set-up costs and ongoing fees can far outweigh the benefits, and clients are urged to look closely at the financial implications before moving ahead with it.

Can I transfer money from one RRSP to another?

Transfers between RRSPs You can transfer cash and investments between RRSPs you hold at the same or different financial institutions. Tax will not be withheld if the transfer is made directly by the financial institution. One or both of the financial institutions involved may charge you a transfer fee.

Where is my RRSP money invested?

Investments you can hold in an RRSP

  • Cash.
  • Gold and silver bars.
  • GICs.
  • Savings bonds.
  • Treasury bills (T-bills)
  • Bonds (including government bonds, corporate bonds and strip bonds)
  • Mutual funds (only RRSP-eligible ones)
  • ETFs.

Is it better to put money in RRSP or mortgage?

If your retirement is around the corner, pay your mortgage more quickly to reduce your budget for the next few years. Also to be considered, if you are taxed at a high rate, RRSP contributions might be more advantageous than mortgage payments because of the associated tax savings.