The prime lending rate is the loan interest rate that a financial institution uses as a base to calculate interest rates. Today's Royal Bank of Canada Prime Rate: Easy Payment OptionsCompound Interest and Tax Deferral can Outweigh the Cost of Borrowing; You need to borrow: $2, Your marginal tax rate is: 40%: Your RRSP Personal Loan Interest Rate is: (1) Your loan term is: 12 months: Your Monthly Loan Payment (including LoanProtector ® premium): $ You Would Save: Tax Rebate/Deduction: $1, Less total interest over term:Let’s say you have $25,000 in unused room available and have a marginal tax rate of 39%. If you get a catch-up loan and contribute $25,000 to your RRSP, you should have a tax refund of $9,750. By using the proceeds to pay off part of the loan, you’ll reduce what you owe to $15, the rate of return on your Registered Retirement Savings Plan (RRSP) is expected to be higher than the interest rate on your loan, borrowing to invest could put you ahead. But, if your RRSP rate of return is less than your loan rate, an RRSP loan may not be your best a competitive interest rate 1. 1 View footnote 1. Maximize your RRSP contributions for the year. Catch up on any RRSP contributions not made in previous years. Take advantage of tax benefits now while saving for your retirement. 1- to 5-year terms. Weekly, bi-weekly, or monthly payment Loans - RBC Royal BankRRSP Loans - RBC Royal BankRRSP Loan – Loans | Manulife BankRRSP Loan - Registered Retirement Savings Plan Loan

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