Non Arms RRSP Mortgage - Ontario, Canada

[Dan Falla]

I have hit the $$ wall like most investors.  Many opportunities exist but I don't have the downpayment to further my real estate investment. 

I have been researching how to make my RRSP, LIRA, etc work for me.

I have read Shirepoint site that teaches Arms Length RRSP but I would rather loan to myself.

After further investigation, I have come across TD's web site where you can do a Non Arms Length mortgage.  Before any of you respond that TD no longer does that, I have checked with my branch and they do.  What they no longer do is Arm Length.

Apparently, you can loan yourself from you self directed RRSP.  It is registered through a lawyer and the bank.  A mortgage insurer must also be involved.  Typical fee for CMHC, between 1.5% to 2.5%.  You charge yourself typical market interests rate.  So, you are paying yourself 10%-12% and it is insured by CHMC.  The 10-12% you are putting back in tax free.

Couple questions that I have

I want to take out this mortgage for my principle residence - since I will be using the money to pay off credit lines that I am using to fund my real estate investing - would the interest I am paying be.

What is the maximum rate I can charge myself?

How tough is CMHC on this type of plan? 

My credit is very good - no missed payments in years - but - I have had 15 inquires on my credit in the last year (bought 10 properties). How much will the inquires drop my rating?