RRSP Loans

Making good on lost time

THE RIGHT LOAN FOR YOU
RRSP loans are generally divided into two categories: one is a smaller loan to help Canadians who haven't maximized their contributions for a few years - a top-up loan. The other RRSP loan is tailored to Canadians who have been behind on their contributions for some time. These loans are generally anywhere up to $50,000 and are paid over a longer term - catch-up loans.

TAILORED TO YOUR NEEDS
How much extra room you have to fill and what kind of payments you can make will determine which RRSP loan suits you best. While interest rates vary, some can be as low as prime.

MAKING IT MANAGEABLE
In both cases, discuss with your Rice Financial advisor what you can afford to pay back on a regular basis. Most will recommend taking out an amount that allows you to pay back the loan while still making regular contributions toward your RRSP-this way, you won't fall behind again.

PLAN TO PAY BACK
Contributing more to your RRSP means you will generally have a higher tax refund than you normally would. You can use the money to immediately pay down the RRSP loan. Some institutions allow you to defer your first payment for a few months after the RRSP loan is taken out to allow for this immediate pay-back (interest still applies).

Visit your Rice Financial advisor for more information on this and other investment and insurance opportunities.