RRSP loan

  • Main feature: low interest rate for a loan to invest in your RRSP
  • Interest rate: fixed or variable rate between 4.75% and 6.35%, depending on term
  • Loan term: 1 to 10 years
  • Payment schedule: weekly, every 2 weeks, or monthly

Features

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. This type of borrowing to invest can be a wise choice for tax payers who will receive an income tax refund promptly since they can use it to quickly reduce their loan.

Interest rate

  • Fixed or variable rate, between 4.75%2 and 6.35%2 (lower than the rate on a personal loan).
  • You can switch from a variable rate to a fixed rate, and vice-versa, at any time. See current rates.

Amount available

No maximum amount

Repayment

  • Loan payment frequency is flexible: weekly, bi-weekly or monthly.
  • Option to only pay the interest on the loan during RRSP season.
  • No prepayment penalties: pay off your loan whenever you want, in part or in full, without being charged extra fees.

Loan term

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

Compare the RRSP loan with Accord D RRSP financing

Calculate

  1. Borrowing to invest is a leverage opportunity. Using borrowed money to purchase securities carries greater risk than purchasing them with cash. If you borrow money to purchase securities, you have an obligation to repay the loan and any interest required by the loan terms even if the value of the securities purchased declines. See a Mutual Fund Representative to learn more.
  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.