While a mortgage or loan is the most common way to finance a real estate investment, banks require a substantial down payment for this. If you do not have this budget, it is possible to finance your investment property in other ways: By using the equity in your home, i.e. the part of your main property that is no longer subject to a loan. By using other people's RRSPs and more specifically, a self-directed RRSP held by a third party. This third party can lend you cash to finance your investment in exchange for interest. By creating a partnership: as we will see in more detail below, it is also possible to invest in real estate in partnership with other people. By applying for a private mortgage: while private lenders are more flexible than banks and lending institutions, their interest rates are also higher and you will have to take this into account when calculating the profitability of your investment.