An RRSP is a deferred tax savings vehicle. Contributions will accumulate with investment income tax free. When the money is taken out of the RRSP it is taxed as income. Money may be withdrawn at any point, but generally it is accumulated until retirement and an annuity or RRIF is purchased. Reverse Mortgage Reverse mortgages allow individuals with significant equity in their homes to use it as a source of income.
Individuals receive either a lump sum or a series of payments and use their residence as collateral.
The principle and interest is repaid from the estate upon death or sale of the home. Reverse Mortgages are currently available to residents of British Columbia and Ontario. The YMPE is used in determining maximum benefits and contributions to the Canada Pension Plan. All Rights Reserved.