RRSP Loan

RRSP Loan

Choice of rates, terms and payment frequency

Ideal for borrowers who want to contribute to an RRSP to benefit from tax deductions and who will be able to repay the loan soon1.

Get this product - RRSP Loan

Key features

  • Interest rate Rate lower than that of a personal loan.
  • Fixed or variable rate Between 3.50% and 5.80%, depending on term selected2.
  • Flexible payment options Choose the type and frequency of your payments.
  • Deferred payment of principal Pay only the interest 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 $27,230.

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     - Accord D RRSP financing

    1. Calculations are based on the information entered in the simulator and are subject to the following limitations:
      • The interest rate on your financing is not included in the simulator's calculations.
      • The income tax calculation is an estimate that factors in only gross income and basic deductions (basic personal amount).
      • The amounts shown are rounded to the nearest dollar.
      • Penalties apply if you over-contribute to your RRSP.
      • Your tax refund may be lower if you have income that is not subject to source deductions. An example of income subject to source deductions is your salary.
      • Your unused RRSP contribution room is not taken into account.
    2. The contribution limits set by the Income Tax Act do not take into account your contributions to your employer's pension plan; if you contribute to such a plan, your contribution limit will be lower.

    Annual interest rate

    In effect on April 10, 2021

    • Repayment period: 1 year
      3.50%
    • Repayment period: 3 years
      4.00%

    See all rates - RRSP loans

      Features

      Interest rate

      • You can choose between a fixed or variable rate.
      • You can switch from a variable rate to a fixed rate, and vice-versa, at any time.

      Amount available

      No maximum amount

      Repayment

      • Payment schedule: Weekly, every 2 weeks, or monthly.
      • Pay only the interest during RRSP season.
      • Prepayment possible at any time, in part or in full, without being charged extra fees.

      Loan term

      • Up to 10 years, depending on the amount.
      • Your caisse may agree to a longer term depending on the loan's purpose (e.g., contributing your unused RRSP contribution room) and, in some cases, on the collateral provided.

      Other

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

      Documents to bring to your meeting with an advisor

      • Proof of income (pay stub, etc.)
      • Investment statements
      • Other loan statements (including consolidated loans)
      • Tax bills or leases
      • Last Federal Notice of Assessment

      Make an appointment with an advisor at a caisse.

    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.

    Advice

    My taxation

    Is an RRSP loan right for you?

    Read the article: Is an RRSP loan right for you?

    1. 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.
    2. 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.