Who should get this loan?
Borrowers who want to contribute to an RRSP to benefit from tax deductions and who will be able to repay the loan.* This type of borrowing to invest can be a wise choice for tax payers who will receive an income tax refund promptly since they can use it to quickly reduce their loan.
- Fixed or variable rate (lower than the rate on a personal loan).
- You can switch from a variable rate to a fixed rate, and vice-versa, at any time.
- $500 minimum
- Loan payment frequency is flexible: weekly, bi-weekly, monthly, or single payment in full.
- Option to only pay the interest on the loan.
- No prepayment penalties: Pay off your loan whenever you want, in part or in full, without being charged extra fees.
Your caisse may agree to a longer term depending on your use of the loan (e.g., your unused RRSP contribution room) and, in some cases, on the collateral provided.
- Loan insurance (death and disability) available.
- See Loan Insurance.
* Borrowing to invest is a leverage opportunity. If the loan amount is invested in investment funds, the risk is even higher. See a Mutual Funds Representative to find out more.