With RRSP Loan , you can get approved quickly for a minimum amount of $1,000 with a fixed or variable rate. Your first payment can be deferred for three or six months. Payments are automatically debited from your account in most cases.
Access RRSP Loans – RBC Royal Bank
Access RRSP Loan – iA Financial Group
If you are temporarily short on cash and can’t contribute to your registered retirement savings plan (RRSP), an RRSP loan may be just the thing for you. In fact, the money you receive from your tax return and investments might even cover the cost of the loan.
This way, you can continue to contribute to your RRSP or increase your contributions, no matter your financial situation. What’s more, if you use your tax return towards payment of your loan balance, the loan will be repaid more quickly.
Potential Savings with an RRSP Loan
As shown in the example below, the potential cost savings can outweigh the cost of borrowing to make your RRSP contribution.
Plus, the money you borrow to invest will grow together with the rest of your RRSP investments—sheltered from tax as long as it’s in your RRSP.
| Amount You Want to Borrow: | $5,000.00 |
| Your Marginal Tax Rate: | 40% |
| Loan Interest Rate: | 3.2%(1)disclaimer |
| Loan Term: | 12 months |
| Your Monthly Loan Payment (including LoanProtector® premium): | $423.92 |
You Would Save
| Your Tax Rebate: | $1,000.00 |
| Less Total Interest Paid Over Loan Term: | $140.00 |
| Your savings(3)disclaimer | $860.00 |
iA Financial Group Interest rates
The rates shown are fixed in accordance with the Royal Bank of Canada’s prime rate (PR), which is currently at 4.70%. The interest rates are provided for information purposes only and are subject to change at any time, without notice.
| Repayment term | Less than $5,000 | $5,000 and over |
|---|---|---|
| 1 year | PR + 2.25% | PR + 0.75% |
| 2 years | PR + 2.25% | PR + 1.25% |
| 3 to 5 years | – | PR + 2.25% |
| 6 to 10 years | – | PR + 3.00%* |