You are giving incorrect information.
An RSP loan will have the proceeds contributed to the RSP. The brokerage will also not let you purchase high risk securities with the loan. The loan is secure in an indirect sense in that the assets you purchase are sitting in an account at the broker. You would not be able to transfer out the account without settling the loan.
You are mixing stuff up in what you say Tell me where I can purchase an RSP? If I buy an RSP, what do I buy?
(One last thing... with a brokerage, they wont run a credit check on you for an RSP loan. They lend you the money, force you to contribute it and then purchase a security. They make money on the loan and on the trades you make with the proceeds of the loan. An RSP loan is different from an investment loan at a bank.)
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Originally Posted by albertGQ
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
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