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RRSP loan

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Call an advisor at 1-866-522-6688 for more information.

No RRSP contributions for a year could mean hundreds of dollars less come retirement! The RRSP loan was designed just for this kind of situation! It’s a convenient way for you to optimize your RRSP contributions and make the most of your unused contribution room.


Why use an RRSP loan?

When cash is short to contribute to your RRSP, the RRSP loan might be a good solution for you. It might help you to make the maximum contribution to your RRSP, and thus, help you to save for your future.

Yours to enjoy!

  • Unused RRSP contribution room: $10,000
  • Taxable income1: $60,000
  • Approximate income tax return: $3,712
  • Line of credit monthly repayments: $90.36

 

VALUE OF A $10,000 INVESTMENT AFTER 30 YEARS3
As this example demonstrates, the cost of borrowing a $10,000 RRSP loan is only
$7,5902 based on a taxable income of $60,000!

 

CHARACTERISTICS*
Minimum and maximum amounts $1,500 to $50,000
Interest rate
  • Attractive interest rate can be fixed or variable.
  • The interest rate varies according to the amount on loan and the amortization period.
Terms 1 year to 10 years
The amortization period varies according to the amount on loan.
Repayment terms
  • Fixed monthly repayments: principal and interests;
  • Penalty-free reimbursement before term allowed.

Contact one of our advisors at 1-866-522-6688 to see if this product is for you.


Summary

This financing product is suited for you if:

  • You want to max out your RRSP contribution or your unused RRSP contribution room and need some financing to do so;
  • You want peace of mind come retirement;
  • You wish to invest an additional amount in your RRSP.

This financing product is not suited for you if:

  • You are not disciplined in your debt reimbursements.



Legal notice

1 Approximate calculation based on the exemption for a single individual having no dependants according to the federal and Quebec provincial income tax tables of 2017.
2 Based on 7-year RRSP financing cost carrying interest at 5.50%, and assuming that the income tax return is applied to the loan after 6 months, with interest paid for those 6 months only and the loan refinanced over 84 months. The amount of $7,590 is the borrowing cost (capital and interest) for the example.
3 Calculated based on an annual compound rate of return of 5%.
* Some restrictions may apply. Please read your cost of borrowing declaration and your contract provided when the opening your RRSP loan.

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