It's Time To Talk RSP Loans

It’s time to start the RSP conversation. After all, it’s an important part of your overall financial plan. But have you considered the advantages of contributing to your retirement savings with an RSP loan?

Here are three reasons why you should talk to your advisor today about an RSP loan.


The earlier you start saving, the more time your investments have to grow. With an RSP loan, you’ll be able to invest a greater amount upfront so your investments will have more opportunity to benefit from compound returns.1

Many Canadians fear that they haven’t saved enough for retirement; however, they may be missing the opportunity to contribute to their RRSP. In fact, Canadians have over $1 trillion in RRSP contribution room. This equates to approximately $41,000 in unused contribution room on average per tax filer.2

Consider this. Every day, we use borrowed money to satisfy our financial needs and spend on items such as furniture, clothes, electronics and vehicles. Rather than borrowing to spend on items that depreciate quickly, consider using your borrowing power to catch up on your unused RRSP contribution room and build your wealth instead.

An RSP loan can help you make a larger contribution to your RRSP without using your own existing savings. Declaring RRSP contributions on your tax return reduces your taxable income, which can in turn potentially get you a larger tax refund.3

Talk to your financial advisor today.

How it helps

How much money do you unwittingly spend each year?

Joe is, well, your average Joe. He’s a 41-year old who works hard but can never seem to save enough money to put into his RRSP. Like many of us, Joe spends his money on things throughout the day. Things such as:

And what does he have to show for it at the end of the year?


What if Joe were more disciplined and brought his lunch to work each day, brewed his own coffee, and curbed his daily spending habit?

Joe could be using the money he spends unwittingly during the week for his retirement savings. With his financial advisor, he looks at a few options to support his financial goals:


Instead of spending $200 a month, Joe could be putting that amount toward monthly payments on an RSP loan. By setting money aside today, he is investing in his future. Over 30 years, that could grow to more than $100,000. Here’s how:

A $200 monthly payment amount translates to:

  • A total loan amount of $18,344.85
  • Over 10 years at a rate of 5.60%

With a savings horizon of 30 years, he could end up with $105,363.50.

Note: Based on 6% rate of return.

Chart over 30 years

The first option seems pretty good, but if Joe wants to boost his savings even further, he could reinvest his potential tax refund. This would allow him to obtain a larger savings at 71 years of age.

A $200 monthly payment amount translates to:

  • A total loan amount of $18,344.85
  • Over 10 years at a rate of 5.60%

+ reinvesting his tax refund:

  • In year 1, a refund on an $18,344.85 RSP contribution would be around $5,714
  • In year 2, if he reinvests his $5,714 refund, he’d get back $1,780, which can further be reinvested

With a savings horizon of 30 years, he could end up with $147,829.00.

Note: Based on 6% rate of return.

A $200 monthly payment chart

If these are the possible results of an average Joe simply investing $200 a month, don’t you think it’s time you talked to your advisor about an RSP loan?
Contact your financial advisor today to see if this option is right for you.

“RSP MV” represents the market value of an RRSP account with the loan proceeds. The calculations shown are for illustration purposes only. Dollar amounts do not include cost of borrowing. Actual rates and amounts may differ. Assumes that the interest rate remains constant throughout the amortization period. All loans are subject to B2B Bank credit approval and the calculations shown may not be the actual figures used for B2B Bank's loan application and underwriting processes. B2B Bank cannot be held responsible for the accuracy of the calculations performed or the amounts indicated. Opportunity costs of the monthly contributions or payments are not factored into the illustration. Does not factor tax rate, income or province. Potential tax refunds are dependent on a number of factors, and making an RRSP contribution will not yield a tax refund in all circumstances.

Start Today

Our goal is to deliver outstanding value as you invest for your future. At B2B Bank, we believe that means competitive rates and flexible options to meet your individual needs.

Start today and take advantage of our 6-month payment deferral option.

Make no payments for up to 6 months.

A B2B Bank RSP Loan can start working for you today, with no upfront payments.3

Kick start your savings.

A B2B Bank RSP Loan can help you get started, or get back on track, if you haven’t had the money to contribute to an RSP in the past.

Money has more time to grow on a tax-deferred basis.

The longer the investment horizon, the better. Investment returns can compound over time in an RRSP, but the time to start is NOW.1

Plan today to save for tomorrow.

Learn more

About B2B Bank

B2B Bank is proudly 100% Canadian, and we have an independent spirit – much like the advisors we work with.

We’re dedicated to you and your advisor because we strongly believe that all Canadians should have access to independent
financial advice.

We give Canadians a choice. We serve independent advisors who are able to offer you advice and financial solutions that are appropriate for your individual needs.

It's time to talk with your financial advisor today to see if an RSP loan is right for you.



Are you an advisor?

1 Leveraging involves greater risk than purchasing investments using only your own cash resources because it has the potential to magnify investment losses.

2 Source: Statistics Canada, 2015:

3 Clients can defer their first payment for up to 180 days on all B2B Bank RSP Loans. If a deferral payment option is selected, the first payment is due on the first payment date after the expiration of the deferral period. The interest accrues from the date of funding and extends the term of the loan by the length of deferral.

While RSP loans have the ability to magnify gains, they also have the potential to magnify market losses. B2B Bank does not provide investment advice to individuals or advisors and does not endorse nor promote any investment products. The dealer and advisor, not B2B Bank, are responsible for determining the suitability of investments for their clients and for informing them of the risks associated with borrowing to invest. B2B Bank acts solely in the capacity of lender and loan account administrator. Any loan approval from B2B Bank should not be construed as an endorsement of any investment choice, program or strategy. All loans are subject to credit approval and borrowed monies are due and payable regardless of the performance of the investments purchased. B2B Bank reserves the right to request additional information or documentation at its sole discretion. The B2B Bank RSP Loan Program is available exclusively through licensed financial advisors. Individuals should consult qualified tax specialists.