Arms length Mortgages/Private Lending

[Roman Stefaniw]

Hello everyone. I'm interested in lending money out using a self directed RRSP or TFSA account (I'm Canadian). They are called Arms length mortgages in Canada. I was wondering if anyone has done this before and can offer any advice on how to get started. I've read that a good way to get started is to contact some Mortgage brokers who like to partner with people using this strategy. If anyone has any experience on either end of a transaction like this i would be interested in hearing from you. Thank you. :)  

[Roy N.]

It's been a few years since I last updated the list of providers (there are older threads on this topic here on BP), but at last blush there were five trust companies offering the ability to write and service mortgages from registered accounts:

• B2B Bank
• Canada Western Trust
• Olympia Trust
• Eastern Trust
• Community Trust Company

Of these, Canada Western and Olympia has the best offerings at the time.  B2B Bank had just introduced liquidity requirements which seemed to indicate they really did not want to be providing that service.

TD was the last of the Big Five to offer the ability to write and hold arm's length mortgages.  They withdrew this service in 2012.