An RSP loan can help make sure you’re taking advantage of RSP tax-deferred investing. Maximizing your annual RRSP contribution is one of the best ways to build a secure retirement.
It could make sense to borrow from your RSP if you:
- Are looking for a smarter way to manage contributions and cash flow
- Missed making your full contribution in a previous year
- Have a lot of catching up to do
Advantages of RSP Loans:
- Great way for you to meet your retirement goals
- Allows you to maximize the benefit of saving for your retirement
- Increase the potential tax refund that you receive
- Utilize unused contribution room from past years to accelerate tax-deferred savings
- Maximize investment opportunities with a larger access of cash to invest
- Easy term set up, generally can benefit from lower rates than usual during RSP season
A few RSP Loan features include:
Reduce your taxes – By making a contribution up to your maximum contribution amount, it may help to reduce the taxes that you are required to pay
Repayment schedule – Choose a repayment schedule that works for you
Interest rate options – Choose between a fixed or variable interest rate
Deferred payment option – Defer when the payments start; but interest still accrues