Quote:
Originally Posted by Stillman16
Another way that might help, and cost you less, is to go to the bank to get an RRSP loan, and pay it in the installments.
The theory is, the bank has no risk, as they can use the RRSP as colateral, and you get to show you are responsible while saving for retirement.
Also, if you are starting a business, you can also use that RRSP like the home buyers plan, to finance it, and pay it back over time.
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This is actually false. Banks can never take your RSPs as security. It must be registered in your name only. The banks like to make you think that your RSP loans are secured by the RSPs you buy when in fact you don't even have to purchase RSPs with them. In fact, you can even use that loan and invest elsewhere. The way they "force" you to invest with them is that if you don't, you won't qualify for the prefered rate (usually prime minus one). When I worked at ATB, I used to tell people that wanted to buy stocks with the RSP/Investment loan to just get the loan at prime minus one. Put it into a cashable GIC, and then redeem it and invest into whatever they wanted