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RRSP Loans

Borrowing for Your RRSP Could Help You Build a Secure Retirement

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

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: $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
Your savings(11) $860.00

Charts are for illustrative purposes only.

See what your RRSP savings could be.

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

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(10) 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 new window).
  • 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 Insurance provides low-cost, valuable protection for you and your family

You are on: Questions and Answers

Questions and Answers about RRSP Loans

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.

Expand All Collapse All

Expand Why should I borrow to invest in my RRSP?

Expand What types of investments can I hold in an RBC Royal Bank RRSP?

Expand Can I pay off my RRSP loan early? Are there any charges?

Expand How do I apply for an RBC Royal Bank RRSP loan?


Apply for an RRSP Loan


Take Action

  • Apply Now
  • Call 1-800-769-2511 to talk to a credit specialist

Calculate Your RRSP Savings

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


An RRSP Loan May Help with Your Retirement Plan

An RRSP Loan May Help with Your Retirement Plan

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