Benefits of borrowing for your RRSP
Your RRSP contributions may reduce your income tax.ⓘ
Your loan can have a fixed or a variable interest rate.
Borrow up to $75,000 and repay it over a period of up to 10 years.
While interest will still accrue, you have the option to defer your first scheduled payment by up to 60 days.
This loan is for you if you want:
- A potential tax refund by maximizing your RRSP contribution
- To borrow money to contribute to your RRSP, with affordable monthly payments spread out over periods of up to 10 yearsⓘ
- To benefit from tax-deferred growth within your RRSP
- Access to larger amounts between $1,000 and up to $75,000
- The ability to pay off all or part of your loan without penalty
- Use funds to contribute to a range of CIBC RRSP products
- A simple borrowing experience with no collateral or margin loan account required
Fixed versus variable rate loans
CIBC Fixed Rate Loan
- With a fixed interest rate, your payment amount remains the same throughout the term of the loan, allowing you to budget your cashflow confidently.
- Your interest rate stays the same even if there is a change to CIBC Prime Rate.
CIBC Variable Rate Loan
- With a variable interest rate loan, your payment amounts may increase or decrease based on CIBC Prime Rate.
- If interest rates decrease during your loan term, a higher portion of your regular payment will be applied to the principal, allowing you to pay off your loan more quickly.
- Conversely, if interest rates increases during your loan term, a higher portion of your regular payment will be applied to the interest. This may increase the payment at renewal but does not impact the amortization period of your loan.