Unused contribution room RRSP loan

Who should get this loan?

Tax payers who want to borrow money to invest their unused RRSP contribution room. An unused contribution room RRSP loan (often called a "catch-up loan") is an excellent choice for tax payers in the highest income tax bracket who will be able to pay off the loan quickly.

If you haven't made the maximum allowable RRSP contributions each year, the difference has been carried forward since 1991¹ as unused contribution room, which you can use to contribute at any time.

The benefit of borrowing to contribute to your RRSP is that the amount you contribute can be deducted from your annual income, giving you tax savings or a substantial income tax refund. You can then use your income tax refund to pay off your loan ahead of schedule.

Features


Interest rate	Same rate as an RRSP loan.

Amount available	Up to the amount of unused contribution room you have.

Repayment	Loan payment frequency is flexible: weekly, bi-weekly or monthly. No prepayment penalties: Pay off your loan whenever you want, in part or in full, without being charged extra fees.

Loan term	1 to 10 years.

Other	Loan insurance (death and disability) available. See Loan Insurance.




	By phone	Call 1-888-283-8333


	At the branch	Make an appointment with an advisor at a branch.

1. To find out more about your unused RRSP room limit, consult your CRA (Canada Revenue Agency) notice of assessment.