Borrowing for Your RRSP Could Help You Build a Secure Retirement

Making a contribution to your Registered Retirement Savings Plan (RRSP) each year is one of the best ways to build a secure retirement, that’s why we’ve pre-approved you for a $5,000 RRSP loan at our Prime rate(1) to use towards an RBC Royal Bank® RRSP account.

Whether you have unused RRSP contribution room from previous years or you need to borrow a lump sum for 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.

 

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: 2.70%(1)
Loan Term: 12 months
Your Monthly Loan Payment $211.39

You Would Save
Your Tax Rebate: $1,000.00
Less Total Interest Paid Over Loan Term: $36.70
Your savings(2) $963.3

Chart is for illustrative purposes only.

Expand Features of an RBC Royal Bank RRSP Loan

 
 

You’re Already Pre-Approved!

To take advantage of this pre-approved RRSP loan, visit your local branch or speak to an RBC credit specialist before the RRSP contribution deadline.

Remember, any contributions to an RBC® RRSP account before midnight, local time, on Monday, February 29, 2016 will be eligible for a receipt for your 2015 tax return.

 

Personal lending products are offered by Royal Bank of Canada and are subject to its standard lending criteria.

®/TM Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada.

1) The rate is based on our Prime Rate and is subject to change based on changes to the Prime Rate. Prime Rate for RBC Royal Bank is posted in all of our branches and online at www.rbcroyalbank.com (opens new window). As of the date of this Agreement our Prime Rate is 2.70%.

2) 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 interest expense is not tax-deductible.

3) LoanProtector is a creditor's group insurance program underwritten by The Canada Life Assurance Company and is subject to terms, conditions, exclusions and eligibility restrictions.

 

Take Action before February 29, 2016

 
 

Calculate Your RRSP Savings

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

RRSP Loan Calculator (opens new window)

 
 

An RRSP Loan May Help with Your Retirement Plan

An RRSP Loan May Help with Your Retirement Plan

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