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RRSP loans and lines of credit

Borrow a little, save a lot

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RRSP financing at a glance

Do you need funds to increase your RRSP contribution1? By opting for a term loan or a line of credit, you can maximize your income tax return and use it to repay the amount you borrowed, while saving for retirement.

Perfect if you are looking to:

  • Get quick access to financing to contribute to your RRSP
  • Reduce your taxable income
  • Save for retirement, buying your first home, or going back to school
  • Take advantage of unused RRSP contribution room from previous years
  • Use your tax return to repay your loan
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Quick tip

Want to know how much you can afford to borrow? Take a few moments to use our calculator.

Choosing between a loan and a line of credit

RRSP loan

RRSP loans

In most cases, you can get approved quickly for a minimum amount of $1,000 with a fixed or variable rate. Your first payment can be deferred for three or six months.1 Payments are automatically debited from your account.

Perfect if you're looking to:

  • Benefit from an attractive interest rate that is generally lower than the rate on a personal loan
  • Opt for a term ranging from three months to ten years
RRSP line of credit

RRSP lines of credit

Get a line of credit for at least $5,000 with a competitive rate and you won't have to apply for RRSP financing each year.

Perfect if you're looking to:

  • Repay the loan at your own pace
  • Only pay interest on what you borrow while you wait for your tax return

Ready to apply for financing to maximize your RRSP contributions?

Apply
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Tip

Don't leave your debt to loved ones in case of death, disability or critical illness. Make sure you're protected with loan insurance.

Little details that matter

Borrowing scenarios

Example :

If you're taxed at 40% and you contribute $3,000 to an RRSP, your income tax return will be $1,200 (3,000 x 40% = 1,200).

If you're taxed at 40% and you borrow $2,000 to add to your initial RRSP contribution of $3,000, you'll get $2,000 back (5,000 x 40% = 2,000).

So your income tax return repays the entire loan, and you've saved $5,000 instead of $3,000 for your retirement.

Rates for RRSP loans and lines of credit

Prime rate (P) = 3.45, as at January 18, 20183

RRSP loans

Terms (months)

Fixed rate

Variable rate

Less than $10,000

$10,000 or more

3-12

5.25

5.00

P + 0.75 = 4.20

13-24

6.25

5.50

P + 1.25 = 4.70

25-36

6.25

5.50

P + 1.75 = 5.20

37-48

6.50

6.25

P + 2.25 = 5.70

49-60

6.75

6.50

61-84

----

6.75

85-120

----

7.25

 

RRSP lines of credit

$1/month management fee

Rate

P + 1.50 = 4.95

Rate

T + 1.50 = 4.70


Rates are subject to change without notice.

Borrowing to buy a home (HBP) or go back to school (LLP)

Take out an RRSP loan or line of credit* and take advantage of the Home Buyers' Plan (HBP) to buy your first home, or the Lifelong Learning Plan (LLP) to go back to school.

 

Here's how:

  1. Take out an RRSP loan or line of credit.
  2. Put the money you borrowed in your RRSP (up to your contribution limit) and keep it there for 90 days. Interest charges may apply.
  3. Withdraw the amount you need from your RRSP. Note that you will need to pay back your loan in full when you make this withdrawal.
  4. Get a tax refund for contributing to your RRSP and put it toward your downpayment or use it to finance your studies.
  5. Note that you have up to 15 years to pay back any funds you withdraw from your RRSP under the HBP, and up to 10 years to pay back funds withdrawn under the LLP.

*Subject to credit approval by National Bank. Speak with your accountant, tax specialist or financial planner to see if this is the right strategy for you.

Legal Disclaimers

1. Subject to credit approval by National Bank.

2. The prime rate means the annual variable interest rate posted by National Bank, from time to time, and used by the Bank to determine the interest rates on the demand loans it grants in Canadian dollars in Canada.

3. Account statements are produced monthly. Interest accrues as soon as an amount is drawn on the line of credit. Examples of credit charges calculated for a period of thirty (30) days based on the rate in effect on January 18, 2018:

Average balance
Regular interest rate (no annual fees)
$500
$3,000
Prime rate +1.50% (4.95%)
$2.03 $12.20

Learn about our other credit solutions

Personal loans

You can choose a fixed or variable rate loan to help you with a major purchase or goal.

See our personal loans

Lines of Credit

Access a flexible source of financing when you need it.

See our lines of credit

See all our solutions

Ready to apply for financing?

Fill out an online application or meet with an advisor for personalized assistance.

Apply

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