Yes you can but there may be additional information needed. Your mortgage professional should be able to prove that this is an "arms length" transaction meaning the seller and the buyer are doing the negotiations and bargaining without one influencing directly the other party through blood relationship or extended degree of relationship, ie. this is not a sale within family members. The purchase and sale agreement needs to be crisp to get a mortgage that is not MLS. Also,. an appraisal may be needed especially if the price does not make sense.

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Hi all, my location is ontario, canada. i'm considering registering a self directed rrsp second mortgage on an investment property(triplex) that i currently own. wanted to ask: - should i ask the mortgage broker (who is arranging the first mortgage) if i can do that in advance or can i just do it even after the purchase/closing date is fine? - should i have a lawyer register the self directed rrsp second mortgage or not necessarily? - does it affect me negatively, in a way, because if i register a 2nd mortgage i will show more debt in my next mortgage application? in other words, does registering a self directed rrsp/2nd mortgage affect our credit negatively? and lastly: - what is the main purpose investors do that - to be able to claim interest as a deductible expense? that's it? i would appreciate any advice on the topic. thanks & regards.

You had better go see a very, very good accountant before you do this. The CRA rules are very narrow, and the consequences are severe.