RRSP Loans


An RRSP contribution is one of the best ways to build your retirement savings and if you are finding it difficult to make or maximize your contribution, an RRSP line of credit (Loan) can definitely help.

An RRSP Line of Credit helps you get more money growing tax-deferred towards your retirement goals. If you get a tax refund for your contribution, you can use this money to pay down your loan more quickly.

Contributing using an RRSP Line of Credit may help you get there faster by:
  • Reducing your taxable income
  • Generating a potential tax refund
  • Catching up on unused contribution room
  • Growing your savings for retirement

Features:
  • Establish a RRSP loan credit limit and then, with one phone call, borrow up to that limit for RRSPs every year without re-applying
  • Use your tax refund to pay off your loan - you can wait up to 90 days to begin repaying your loan
  • Receive your tax receipt the day you make your contribution.
  • Borrow up to your maximum eligible RRSP contribution per year as defined by Revenue Canada
  • Pay off your loan at any time
RRSP Line of Credit Benefits
Amount to borrow: $2000
Your RRSP line of credit rate: 3.95% ¹
Scheduled loan payments: 12 months ²
Monthly loan payments (loan insurance included) $174 ³
You Would Save: (based on a marginal tax rate of 26%)
Your Tax Refund/Reduction $520
Less interest paid: ($46)
Plus interest earned on a $2000 Term Deposit at 2.00% ⁴ $40
Your Savings $514
Build a dream retirement with the help of a Community Savings RRSP Line of Credit.



Talk to us about how an RRSP Line of Credit can help you reach your retirement goals faster.
To get started: please contact us today, visit a Community Savings branch


RRSP Catch-Up Loan

A Catch-up loan gives you the ability to take full advantage of your unused RRSP contributions from previous years. The Catch-Up RRSP Loan is an easy and affordable way to get caught up. And it works like this. Revenue Canada allows you to contribute up to 18% of your previous year's income to a maximum $26,500 (minus any pension adjustments) each year. Any unused RRSP contribution is automatically carried forward each year. Simply bring in your notice of assessment from Revenue Canada which shows how much you can contribute and we will help you arrange an RRSP loan to maximize your tax benefits and grow your retirement savings.

Features:

  • Borrow up to 100% of the RRSP being purchased
  • 2 – 5 year terms available, on demand
  • Monthly or bi-weekly payment schedules - repay your loan quicker
  • Pay off your loan at any time
  • Life and disability insurance available
  • Wide range of RRSP options.


*Conditions Apply - OAC. See in branch for details how and if you can qualify for this rate.
¹ Interest rates used for examples are for illustrative purposes only. 3.95% rate illustrated based on the prime rate on January 9, 2020. Interest rates are subject to change at any time without notice.  ² RRSP Lines of Credit do not have a fixed payment schedule. Scheduled loan payments indicated are for illustrative purposes only.   ³ Monthly payment based on paying off loan over 12 equal monthly payments and may vary with insurance and loan criteria. ⁴ Term rates used for examples are for illustrative purposes only and represent a 12 month long term. Term rates are subject to change at any time without notice.  ⁵ On approved credit. Terms and conditions apply. Limited time offer.
 
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