RRSP Loan
RRSP Loan
Choice of rates, terms and payment frequency
Ideal for borrowers who want to contribute to registered retirement savings plan (RRSP) to benefit from tax deductions and who will be able to repay the loan soon1.
Key features
- Interest rate Rate lower than that of a personal loan.
- Fixed rate Between 7.20% and 7.90%, depending on term selected2.
- Flexible payment options Choose the type and frequency of your payments.
- Deferred payment3 Defer your payment for up to 6 months during the RRSP period.
Maximize your RRSP contribution
The calculator tells you approximately how much to borrow to maximize your RRSP contribution so you can use your tax refund to repay your financing capital, which excludes the interest due.
Remember that your annual contribution limit is 18% of your earned income from the previous year, or $30,780.
Annual interest rate
In effect on November 24, 2024
-
Repayment period: 1 year7.20%
-
Repayment period: 3 years7.30%
- Fixed rate
- Payment schedule: Weekly, every 2 weeks, or monthly.
- Defer your payment for up to 6 months during the RRSP period.
- Prepayment possible at any time, in part or in full, without being charged extra fees.
- Up to 10 years, depending on the amount.
- Proof of income (pay stub, etc.)
- Investment statements
- Other loan statements (including consolidated loans)
- Tax bills or leases
- Last Federal Notice of Assessment
Features
Interest rate
Amount available
No maximum amount
Repayment
Loan term
Other
Loan insurance (death and disability) available. See Loan Insurance.
Documents to bring to your meeting with an advisor
Good to know!
- When you borrow to contribute to your Desjardins1 you can:
- maximise your unused RRSP contribution room
- contribute even when you don't have available cash
- maximize your annual contribution
- Your RRSP investments grow in a tax shelter.
- It's a good idea to use your tax refund to pay back your financing.
Further reading
Registered retirement savings plan (RRSP)
Learn more about this profitable plan that allows you to save money tax-free for your retirement and long-term goals.
Learn more about RRSPsLearn more about Registered retirement savings plan
Is an RRSP loan right for you?
There are a number of reasons to invest in an RRSP, but the money isn't always there. Should you borrow to make it happen? It all depends on your situation and other considerations.
- Borrowing to invest is leveraging. The risk associated with using borrowed money to buy securities is higher than when using your own cash. If you borrow to buy securities, you're required to pay back what you've borrowed plus the interest stipulated in the terms of the loan even if the securities you bought drop in value. Talk to your mutual fund representative for more information about leveraging.
- In Ontario, the annual percentage rate (APR) is equal to the posted interest rate, assuming that there are no additional charges applicable to the loan. Should there be such charges, the APR might be different.
- The term offered is for a maximum of 6 months. You will have to repay your loan no later than the date set out in your loan contract through a single payment that will reimburse all the principal borrowed and interest due.