Canadian Self Directed RRSP can it own property in NZ?

[peterballatyne]

Hi,

Is it possible for a Canadian Self directed RRSP to own a Canadian mortgage as a qualified investment and could it own NZ residential property as a consequence of that mortgage provided that the mortgage provider in Canada is willing to let the self-directed RRSP title the property in its name and the mortgage is insured in Canada?

What about a NZ mortgage? Can a self directed RRSP own a NZ mortgage as a qualified investment and could it own NZ residential property as a consequence of that mortgage provided that the NZ mortgage provider in NZ is willing to let the self directed RRSP title the property in its name and it is insured by the NZ QBE mortgage protection insurance?

Thanks much!

Peter Ballatyne

[Michael I. Atlas, CA]

This is my general answer-for me to look into it further, I would have to be retained.

1) Direct insterests in real estate are not qualified investments for a RRSP (I do not know offhand what happens if acquired by foreclosure).

2) There are two situations where mortgages are qualified: (a) Arm's length mortgage on Canadian real estate; (b) NHA insured/administered mortgage-I do not believe that this can pertain to foreign real estate.