RRSP Loans

Depending on your taxable income level, RRSP loans can work well to lower your income tax bill, while earning tax sheltered growth on your deposits and improving the amount in your retirement portfolio. Over the long term, your tax savings and interest earnings should outweigh any borrowing costs. In addition, applying your tax refund against the loan will reduce your borrowing costs and may reduce your monthly loan payments as well.

Purpose of an RRSP loan:

  • Make current year contributions, but do not have the money readily available
  • To maximize current year allowable contribution room
  • Top-up unused carry forward room
  • Use refund to reduce other debts, such as a mortgage

Features from many loan providers include:

  • Attractive borrowing costs
  • Variety of loan types from fixed terms to lines of credit
  • Fixed or floating rates
  • Deferral of loan repayments for as long as 180 days

To discuss RRSP loan options further and see if they may be right for your situation, contact us.