Potential Savings with an RRSP Loan

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

You Would Save

Your Tax Rebate: $1,000.00
Less Total Interest Paid Over Loan Term: $140.00
Your savings(3)disclaimer $860.00
Charts are for illustrative purposes only.

Features and Benefits of an RBC Royal Bank RRSP Loan

Attractive rates and terms make an RRSP loan from RBC Royal Bank a great way to maximize your RRSP savings.

  • Flexible Limits

    Borrow up to $50,000(2)disclaimer to make a single year’s RRSP contribution or to catch up on previous years’ missed contributions.

  • Interest Rate as Low as Prime

    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.

  • Deferred Repayment

    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.

  • Flexible Terms

    Repayment terms range from 1 to 10 years.

  • Easy Payment Options

    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.

  • No Early Prepayment Charges

    Pay more than your fixed payment at any time, or even pay off your loan in full, without penalty.

  • Optional LoanProtector® Insurance.

    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.

RRSP Loan Caclulator

See how much an RRSP loan investment applied to this year's tax return could be worth at your retirement.

Apply for an RRSP Loan

Call to Talk to a Credit Specialist

1-800-769-2511

1-800-769-2511

Find the Right Investment Options

Interest rates used for examples are for illustration purposes only. Interest rates are subject to change at any time without notice.

Personal Loan accounts are available to clients who meet RBC Royal Bank standard credit criteria.

Your savings would be offset by future taxes on the withdrawal of this $2,500. Also, the income on the $2,500 would eventually be taxable, but the $140 of interest expense is not tax-deductible.