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.
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%(1)disclaimer|
|Loan Term:||12 months|
|Your Monthly Loan Payment (including LoanProtector® premium):||$220.00|
|Your Tax Rebate:||$1,000.00|
|Less Total Interest Paid Over Loan Term:||$140.00|
Attractive rates and terms make an RRSP loan from RBC Royal Bank a great way to maximize your RRSP savings.
Borrow up to $50,000(2)disclaimer to make a single year’s RRSP contribution or to catch up on previous years’ missed contributions.
When you use your RRSP loan to invest in an RBC Royal Bank RRSP, the interest rate could be as low as our Prime Rate opens in a modal box.
Your first payment can be deferred for up to 90 days, so you can use your tax rebate to repay all or some of your loan.
Repayment terms range from 1 to 10 years.
Make your loan payment monthly, semi–monthly, bi-weekly or weekly. You can have it deducted automatically from your chequing account with RBC Royal Bank or another bank.
Pay more than your fixed payment at any time, or even pay off your loan in full, without penalty.
Designed to provide financial backup during difficult times, LoanProtector life and disability or critical illness insurance provides low-cost, valuable protection for you and your family.
See how much an RRSP loan investment applied to this year's tax return could be worth at your retirement.