Jody,
I have used a lot of RRSP money over the years, but I have never tried to leverage off of equity in a "AFS" (Agreement For Sale) situation. A nice idea, but you may very well run into some roadblocks on this one. Why? Not that many years ago RRSP`s were abused by many as a result of overstating the value of the real estate the RRSP`s were being registered against. And in some cases by as much as 25%.
As a result, the Federal Government stepped in and imposed a whole bunch of new rules. This was a good thing, but it essentially made the use of RRSP money a little less attractive. They did this to protect "their" money, or as I otherwise like to refer to it as..."the sacred money".
At one time a "CMA" (comparative market analysis) was acceptable. Now they require a "certified" appraisal. At one time you could use 100% of the market value. Now they discount the value by 10% before you even start. They did this to build in a safety factor or cushion.
Let me know how you make out with this one.
Good luck!
QUOTE (workman @ Jan 30 2010, 08:45 PM) Can anyone give me a solution for placement of RRSP`s? I purchased a home with an "Agreement for Sale". I am not on title. The home has lots of equity. I would like to place a second mortgage on the home but can I do this? I have spoken to Olympia Trust and they were unsure.
Thanks
Jody Workman