Mortgage lending from Ontario to other province

[llee]

Hi,

I live in Ontario. If I want to to lend out RRSP or non-RRSP to a borrower in another province (for example, Alberta) as a private deal, do I need to go through a mortgage broker?

If so, does the mortgage broker have to be in Ontario, or can it be other province (ie, Alberta)?

Thanks.

 

[MonteDobson]

QUOTE (llee @ Apr 27 2010, 04:05 PM) Hi,

I live in Ontario. If I want to to lend out RRSP or non-RRSP to a borrower in another province (for example, Alberta) as a private deal, do I need to go through a mortgage broker?

If so, does the mortgage broker have to be in Ontario, or can it be other province (ie, Alberta)?

Thanks.
No you do not need a mortgage broker, but you will need a lawyer in the province where the property is located to draft up the mortgage documentation. They will then send the stack of documents to you to sign in front of a Notary Public/Lawyer in your own province.

 

[MikeMcCrae]

Monte is right. You can do it yourself, but have every one use their own lawyer and they should be in the province where the property is.

 

[Thomas Beyer]

QUOTE (llee @ Apr 27 2010, 03:05 PM) If I want to to lend out RRSP or non-RRSP to a borrower in another province (for example, Alberta) as a private deal, do I need to go through a mortgage broker?
why ?

You need a legal agreement and a lawyer capable of doing the mortgage paperwork and getting the money out of your RRSP into the borrower`s hand. This takes a few weeks usually.

To do that, you first have to have a trustee (such as CWT or B2B or OlympiaTrust) administer your RRSP. This take a month or 2 to get money from another institution to these RRSP that allow mortgages in your RRSP.

Be aware of fees:

There are trustee account opening/setup fees of about $200-$300 .. plus legal fees .. say $1000 .. and then there is an ongoing account maintenance (maybe $100 to $200) and mortgage admin fee (maybe $125 to $200/year) .. so this makes sense usually only on amounts over $20,000 or more .. as $400/year in fees is 2% of $20,000 !