Typically, Arm’s Length and Non-Arm's Length Mortgages involve an individual lending money from their registered account (e.g., RRSP) to fund another individual’s mortgage. The borrower then makes mortgage payments to the lender’s account in the form of principal and interest. Through a Non-Arm’s Length Mortgage, a person even has the ability to fund their own mortgage from their registered account as a co-borrower.
These two types of mortgage investments can be held in any type of registered account, including a TFSA. However, holding a mortgage in a locked-in plan (LIRA/LIF) may only be held where not prohibited by applicable pension benefits legislation.
Can other types of assets be held in a CWT account?
Absolutely! CWT self-directed accounts allow you to consolidate different investments into one single account. In addition to Arm's Length and Non-Arm's Length Mortgages, your CWT self-directed account can also hold cash, GICs, mutual funds*, stocks and bonds**, and approved exempt market products.
This means that if you already have an RRSP(s)/RRIF(s)/TFSA(s) at another financial institution, you can easily transfer the plan(s) to CWT and consolidate all your investments into one account.
*Requires a licensed mutual fund representative appointed to the account.
**Held through a Delivery Against Payment (DAP) account with CWT's partner, Qtrade.