Can I Use RRSPs to Invest in Real Estate? Yes—Here’s How

Marinella Nicolosi
Aug 25
2 min read

Updated: Sep 1

Woman reviewing RRSP investment options at home with coffee

By Marinella Nicolosi, Private Lending Queen

Yes, You Can Use Your RRSP to Invest in Real Estate — Here’s How

If you’ve got money sitting in an RRSP, here’s something most banks won’t tell you:

You can use it to invest in Canadian real estate—and grow it safely, passively, and tax-deferred.

It’s called RRSP Mortgage Lending, and it’s one of the most overlooked ways to make your savings work—especially for women who want reliable income without becoming landlords.

What Is RRSP Mortgage Lending?

Instead of putting your RRSP into mutual funds or stocks, you can lend those funds to a qualified real estate investor.

In return, you earn steady monthly interest—typically between 8–12%—secured by a legal mortgage on real property. Yes, just like a bank.

How It Works:

You transfer your RRSP to a self-directed RRSP account through a trust company.
You choose a vetted borrower and approve the loan terms.
A lawyer registers your mortgage on title.
You earn interest payments directly into your RRSP—tax-deferred.

For the Mid-Career Mom, This Is Gold:

Between work, kids, and life—time is tight.

RRSP lending lets you build wealth for you and your kids without chasing tenants or fixing toilets. It’s truly hands-off, while offering far better returns than a basic savings account.

For the Pre-Retirement Woman:

If you’re wondering how to stretch your retirement savings without landlord stress, this strategy offers real peace of mind.

You earn predictable income, backed by real property—not the stock market.

Is It Safe?

When done right, RRSP lending is a secure investing strategy. You’re protected by legal contracts, the mortgage is registered on title, and you can control who you lend to—and under what terms.

You don’t need to own real estate to invest in it.

With the right guidance, your RRSP can earn more, while you stay in control.

Published: August 25, 2025 - 2 min read

By Private Lending Queen

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