Secret #1 of Using your House Equity to save you money.

Here is a little trick I learnt that could save you thaousand.
You will need:
1) $50,000 in your RRSPs
2) a TD Waterhouse self directed RRSP account, which will not be hard to open if you don’t already have one.
With TDcanada Trust you can direct your self directed RRSP’s to lend you your own money at mortageg renewal time, which means that the intrest your paying on the RRSP protion of your mortagage is actually to yourself.  Since most times mortgage rates are better that secure returns, and you know your investing in yourself, you’ll get a reliable rate of return.
Here is an example, a $200,000 mortagage comes up for renewal, you take $150,000 from the bank and direct your $50,000 RRSP to complete the full amount.
According to TD’s website

For a 20 year mortgage for $200,000.00 at the rate of 5.04%, your Monthly payment is $1,318.57

So when you consider you’ll pay $37,470 in intrest over the next 5 years, that means your $50K will grow by over $9,000

Something to think about.

Real Estate Dave
(a.k.a Dave Williams)

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s