In this second piece on RRSP Mortgages, I will cover the 5 steps involved in setting up a mortgage within your Registered Retirement Savings Plan, which banks you can select as your administrator, and a word of caution to help you steer clear of the most common pitfall when putting this strategy to work. If…
Many people are completely unfamiliar with the idea of RRSP mortgages, so why not shed some light on the subject? The bottom line is that RRSP mortgages are a great tool for both borrowers and lenders to create wealth. The ability lend RRSP funds in the form of mortgages provides a new source of capital…
Have you ever heard the quote “failing to plan is planning to fail?” For anyone who lives by this quote, you know how profound that simple statement is. Planning is one of my greatest strengths and I’ve learned to use this skill to achieve great things that I never would have done otherwise. As a natural…
Intelligence is Only as Good as Its Source Have you ever considered that advice is often worth what you pay for it? Have you ever noticed how broke people love to offer their investment advice? If you take that advice, then how intelligent is your intelligence? Make it a practice to filter the advice you…
Last week another investor brought Bill 112 to my attention. If you’re a landlord, you’re not going to like this one, and it has unfortunately carried in its first reading. Bill 112 and its proposed amendments to the Rental Tenancy Act can be seen here: http://www.ontla.on.ca/web/bills/bills_detail.do?locale=en&BillID=2408 Proposed Changes The amendments take what is already a…
Each year on November 11th, Remembrance Day is observed in many countries around the world. Whether you are Canadian and know this day as Remembrance day, are American and refer to it as Veterans Day, or come from another area where it may be referred to as Armistice Day, we pause to reflect and remember…
As your portfolio grows, you will begin to discover the value of systems in your business. With a single income property things usually remain pretty simple and even if you let things slide a little, you can usually pull it together when a vacancy arises or tax time rolls around. As you begin to acquire…
This morning I led meeting #1003 at Bay Street Breakfast Club as the Toastmaster. At our club the Toastmaster typically selects a theme for the meeting, and with (Canadian) Thanksgiving this weekend, “gratitude” seemed like a great choice. As I reflected more on the theme of gratitude leading up to this morning’s meeting, I realized…
In follow-up to Debt Ratios 101 which covered the GDS, TDS and DCR ratios, we’ll be looking at the differences between “Rental Add-Back” and “Rental Offset” and the impact of some recent changes on qualifying for financing. Unless you’ve attempted to plan out the financing for your first few purchases, rental add-back or rental offset…
When starting your portfolio, the banks will look heavily at your ability as a borrower to service any loans they provide, with minimal focus on the property itself. During this critical startup phase where you remain in the spotlight, it is important to understand and manage your ratios carefully. Doing so will allow you to…