Straight Talk on RRSP Loans  Last year we saw the government cut
rates and now we have some of the lowest rates in many years.
This year, the prime lending rate is 3.75% and most financial
institutions will lend you money at prime for your RRSP
contribution.  Does borrowing for your RRSP make sense?  If you
borrow $10,000 to buy your RRSP, it will cost you a little over
$200 in interest over the course of a year. Even though you
cannot deduct the interest on loans for RRSP contributions, this
is a relatively small price to pay considering the tax benefit
you will get. Depending on your marginal tax rate, you are
likely to get somewhere between $2300 to $4900 in tax savings.
Add in the tax-deferred growth inside the RRSP and you’ve got a
pretty solid investment.  Use common sense  Regardless of how
good the RRSP loan might sound, you still have to pay back the
loan. In this same example, you have to pay $850 per month. So
common sense is that you should borrow within your means.
Remember, most RRSP loans are f