refinanced the property to increase the mortgage for a down payment on his personal residence. He cannot deduct the additional interest on the mortgage when he calculates his net income or loss from his rental property, because he is making personal use of the funds. Seller financing or VTB(vendor take back) is just like getting a loan through a bank — except you agree to the payback and terms directly with the seller. This loan should include a repayment schedule, interest rate, and consequences, should either party default on their agreement. Often, these agreements include a significant down payment (sometimes higher than mortgages). Many of these agreements also involve the seller holding on to the deed until the buyer has completed all the payments. Using RRSP for real state investing: Utilizing a Registered Retirement Savings Plan (RRSP) to invest in real estate can offer Canadians an avenue to diversify their retirement portfolio. To begin, it's important to establish a self- directed RRSP account. This specialized account allows you to take control of your investments, including the option to invest in real estate properties. With a self-directed RRSP, you can explore various real estate opportunities, from residential properties to commercial ventures. Once your self-directed RRSP is set up, you can fund it with contributions, just like a regular RRSP. The key distinction lies in how you allocate those funds. Instead of sticking solely to stocks and bonds, you can direct your RRSP funds towards purchasing real estate properties. It's crucial to note that the property purchased through your RRSP must be arm's length, meaning you cannot buy a property from or sell it to a family member. Additionally, any income generated from the property, whether
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