Loan types

What is an RRSP Loan?

A Registered Retirement Savings Plan (RRSP) Loan helps you maximize your retirement savings by helping you contribute more to your RRSP before tax season. With flexible fixed and variable interest rates, you can borrow the amount you need to top up your RRSP contributions, lower your taxable income, and grow your retirement savings. Repayment is straightforward with flexible terms, and there are no prepayment penalties.

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Why choose an RRSP?

Lower your taxable income

Contribute more to your RRSP and potentially receive a larger tax refund.

Every dollar you contribute to your RRSP reduces your taxable income for the year. By borrowing to top up your contribution before the deadline, you capture the full tax deduction now — and your potential refund can even help repay the loan.

Catch up on unused room

Make up for any unused RRSP room from previous years.

Unused RRSP contribution room carries forward indefinitely in Canada. If you’ve missed contributions in past years, an RRSP Loan lets you catch up all at once — taking full advantage of your accumulated contribution room and the larger tax deduction that comes with it.

Flexible payment schedules

Make payments weekly, bi-weekly, semi-monthly or monthly — your choice.

We offer flexible payment options, allowing you to choose from weekly, bi-weekly, semi-monthly or monthly repayment schedules based on your preference. Match your loan payments to your pay cycle for easier budgeting.

How does it work?

To get started, meet with a Conexus Advisor to discuss your financial situation, contribution room and how much you’d like to borrow. Your approval and loan amount will depend on factors such as your income and credit history. You’ll need to provide documents such as proof of income and your previous year’s Notice of Assessment or RRSP contribution limit from the CRA. 

Once your loan is approved, the funds are deposited into your RRSP, where they can begin working toward your retirement goals. If you’re depositing the funds into a Conexus RRSP product, you may be eligible for an interest rate as low as prime + 1.25%.*

You’ll then repay the loan over time through a repayment schedule that works for you, with weekly, bi-weekly, semi-monthly and monthly options available. You can choose between a fixed or variable interest rate, and you can defer your first payment for up to 45 days. There are also no prepayment penalties if you decide to pay off your loan early.

Is this right for you?

Right for you if you: 

  • Are in a higher tax bracket and are looking for a way to contribute more to your RRSP, reducing your taxable income and potentially increasing your tax refund.
  • Want to grow your retirement savings. By contributing more to your RRSP now, you give your savings more time to grow, which can significantly benefit your retirement fund over the long term.
  • Missed contributing to your RRSP in past years or haven't maximized your contribution limit, an RRSP Loan helps you catch up and take full advantage of your available contribution room.

May not be right for you if you: 

  • Are already managing existing debts, taking on an RRSP Loan could add financial stress. A budget review with a financial advisor may be a better first step.
  • If your income is inconsistent or you're having trouble making regular payments, a loan could add pressure. Consider making smaller contributions to your RRSP using a savings plan with different investment products or an RRSP QuickLine for more flexible access to funds over time.
FAQs

Common questions.

Here’s what people ask us the most.

An RRSP Loan may be useful if you have available RRSP contribution room but don't have enough cash available to make the contribution before the deadline. Making a larger contribution may reduce your taxable income and could result in a larger tax refund.

The amount you can borrow depends on factors such as your income, credit history and available RRSP contribution room. A Conexus advisor can help determine an amount that fits your financial situation.

An RRSP Loan may make sense if you have available contribution room, want to increase your retirement savings and can comfortably manage the loan payments. If you're already managing significant debt or have inconsistent income, making smaller RRSP contributions may be a better option.

Have questions about borrowing?

We’re here to help.

Have questions about our loan options, rates, payments or the application process? Fill out our quick form and a member of our team will be happy to help.

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*Subject to change without notice.

Loans and line of credits are available to members who meet Conexus’ standard credit criteria.