RRSP Loans
Improve your retirement outlook by taking advantage of Columbia Valley Credit Unions RRSP Loans. We offer short and long term loans to maximize this year’s contribution or catch up on previous year’s unused contributions. Both of these loans are available at rates as low as Prime.
It pays to borrow!
If your allowable 2006 contribution is $5,000 and you only have $2,000 does it pay to borrow the extra? The answer is yes. If you borrow the $3,000 extra your tax benefit more than doubles* and you can use the refund to repay your loan , further reducing your cost of borrowing.
| Contribution | $2,000 | $5,000 |
| Tax Refund @ 40% | $800 | $2,000 |
| Interest @ 4.0% | $80 | $200 |
| Less Loan Costs @ 6.0% | $0 | -$99 |
| Net Benefit | $880 | $2,101 |
For more information please contact a lending professional.
* Assuming your marginal tax rate is 40% and the loan is paid off in 12 months.