How are investments in syndicated mortgages, held in an RRSP account, protected?
A Registered Retirement Savings Plan (RRSP) is an account, registered with the federal government, that you can use to save for retirement. They have special tax advantages. Investments that can be held in an RRSP are called qualified investments. Qualified investments are described on the federal government’s website. Syndicated mortgages are not listed as qualified investments.
Our resource GetSmarterAboutRealEstate.ca provides details on what syndicated mortgages are, how they work and the risks associated with them. In particular, Investing in Real Estate states that “Syndicated mortgages are not insured by the Government of Ontario or any other investor protection fund, meaning there is no way to guarantee you will get your money back.”
Learn more about syndicated mortgages and other real estate investments in Understanding real estate investments.
All investments carry a certain amount of risk. Before deciding if any particular investment product is a good choice for you, create your investment plan and understand the relationship between risk and return. Speak to a registered financial advisor for advice about the options that are best for your investment plan.