Making the maximum contribution to your Registered Retirement Savings Plan (RRSP) each year is one of the best ways to build a secure retirement. But there are times when it's hard to find all the money.
Whether you have unused RRSP contribution room from previous years or you need to borrow a lump sum for just this year's contribution, an RRSP loan from RBC Royal Bank® can help you catch up, making sure you don't miss out on the tax savings and investment growth opportunities of an RRSP.
You are on: Cost Savings
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:||$2,500.00|
|Your Marginal Tax Rate:||40%|
|Loan Interest Rate:||4.75%(5)|
|Loan Term:||12 months|
|Your Monthly Loan Payment
(including LoanProtector® premium):
You Would Save
|Your Tax Rebate:||$1,000.00|
|Less Total Interest Paid Over Loan Term:||$140.00|
Charts are for illustrative purposes only.
Try the RRSP Loan Calculator to see how much an RRSP loan investment applied to this year’s tax return could be worth at your retirement.
You are on: Features and Benefits
Attractive rates and terms make an RRSP loan from RBC Royal Bank a great way to maximize your RRSP savings.
You are on: Questions and Answers
Below are answers to some common questions asked about RRSP loans. If you don't find the answer you are looking for here, an RBC Royal Bank credit specialist would be happy to answer your questions.
* If you apply online, from the first screen, you will need to select the option to apply for a "Fixed Rate Personal Loan" or a "Variable Rate Personal Loan". Later in the loan application, you will be able to indicate that you are borrowing to invest in an RRSP.