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RRSP LOAN

Reach new heights and retire confidently.

Laurentian Bank RRSP loans let you borrow money that you can contribute to your RRSP and reduce your taxable income.1 As your retirement savings reaches new heights, you can secure your financial future.

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Why use an RRSP loan?

If you don’t have the funds for your annual RRSP contribution, there’s another option – apply for an RRSP loan1 to maximize your contributions and still meet your retirement savings goals.

How an RRSP loan can accelerate your retirement savings.

Let’s compare two hypothetical investment examples. Both examples assume the money is invested for 10 years with a 6.00% rate of return.2,3 Example 1: You have an initial investment of $5,000.00 plus an RRSP loan of $15,000.00 at a 10.00% annual interest rate. Your total investment is $20,000.00. Example 2: You have a principal investment of $5,000.00 with no loan.

Details

Initial amount

With loan

$5,000.00

Without loan

$5,000.00

Loan amount

With loan

$15,000.00

Without loan

$0.00

Total invested

With loan

$20,000.00

Without loan

$5,000.00

Loan annual interest rate

With loan

10.00%

Without loan

Not applicable

Years invested

With loan

10

Without loan

10

Rate of return

With loan

6.00%

Without loan

6.00%

Monthly loan payment

With loan

$198.23

Without loan

Not applicable

Cost of borrowing $15,000.00

With loan

$8,787.13

Without loan

Not applicable

Total return on investment

With loan

$35,816.95

Without loan

$8,954.24

Net growth

With loan

$7,029.82

Without loan

$3,954.24

Let's take a closer look.

Start with $1,500.

  • Minimum amount: $1,500

  • Maximum amount: $50,000

Interest rate.

  • Interest rate can be fixed or variable.

  • Interest rate varies according to the amount on loan and the amortization period.

View interest rates

Available terms.

  • 1 year to 10 years.

Repayment terms.

  • Fixed monthly repayments: principal and interest.

  • Reimbursement before term without penalty.

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LOAN INSURANCE

Financial protection that’s within reach.

Peace of mind comes easier when you have insurance for your RRSP loan.
More about loan insurance

Helpful tips and resources.

Your questions answered.

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RRSP LINE OF CREDIT

Keep your retirement on track.

If inflation is impacting your finances, including your RRSP contributions, consider an RRSP line of credit. You can use it to borrow funds to make regular contributions so your RRSP reaches its full potential.4

More about RRSP line of credit

Let's connect.

Laurentian Bank: Laurentian Bank of Canada.

  1. Subject to credit approval. Certain conditions apply. Please read your cost of borrowing declaration and your contract provided when opening your RRSP loan.

  2. Calculated based on an annual compound rate of return of 6%.

  3. For informational purposes only. The calculations shown are for illustration purposes only. Actual rates and amounts may differ. Assumes that the interest rate remains constant throughout the amortization period. The hypothetical Interest rate shown is annual fixed rate and the APR is the same as the rate used in the example. All loans are subject to Laurentian Bank’s credit approval and the calculations shown may not be the actual figures used for Laurentian Bank’s loan application and underwriting processes. Laurentian Bank cannot be held responsible for the accuracy of the calculations performed or the amounts indicated. Monthly contributions or payments are not factored into the illustration and does not factor tax rate, income or any particular province.

  4. Subject to credit approval. Certain conditions apply. Please read your cost of borrowing declaration and your contract provided when opening your RRSP line of credit.

Any loan approval by Laurentian Bank should not be construed as an endorsement of any investment choice, program, or strategy. All RRSP loans are subject to credit approval and borrowed monies are due and payable regardless of the performance of the investments. Depending on your investment choice, RRSP loans have the ability to magnify gains, they also have the potential to magnify market losses. Please consult with an advisor or tax specialist.