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RRSP Loans

RRSP Loans

The RRSP Loan Program is designed to assist our members with saving for their retirement and to help them reduce their income taxes owing on their tax return. A tax receipt reflecting your contributions will be issued.


Product Facts

All RRSP loans are “open” meaning that they can be paid down or paid off in full without penalty at any time.

Loan interest rates fluctuate and are based on the VP Financial Prime Lending Rate. You can view the current VP Financial Prime Lending Rate by clicking HERE.

Weekly, biweekly, semi-monthly and monthly payment options are available.

Affordable payment protection is available.

There are two types of RRSP Loans:

TYPE 1: Standard RRSP loan, which has a 12 month repayment period. Interest rate from Prime + 1%

TYPE 2: RRSP Catch up loan, which has up to a 60-month maximum repayment period. Interest rate from Prime + 1.50%.


RRSP loan proceeds must remain in a VP Financial RRSP investment account until the loan has been paid in full. Alternatively, members may choose other investment options that are available courtesy of our partner companies. All RRSP loan proceeds are first deposited into a VP Financial RRSP Savings account and then may be transferred to one our eligible partner companies.

Please refer to the investment options and our eligible partner companies below:

Term Deposits – Term Deposits are great investment options for those that are seeking a fixed return on their investment without the risk of the stock market ups and downs. There are no fees and you can simply give us a call and email to confirm your investment choice. For more information, please visit our Term Deposit webpage by clicking HERE.

Qtrade Investor – For those that prefer stock and bond market related investments and enjoy managing investments on their own, this option might be for you. We are proud to be partnered with Qtrade as they were most recently recognized for being one of the top Canadian self-directed brokerage by Moneysense.ca. For more information on Qtrade, please click HERE.

Virtual Wealth – Virtual Wealth is also known as a “Robo Advisor”. This investment option is best suited for those that would like to participate in the stock market, but would like to keep fees at a minimum and also have the option of having an advisor to chat with them over the phone. For more information on Virtual Wealth, please click HERE.

Personal Advisor – If you are looking for a Financial Planner that you can sit down with to discuss your entire financial plan this option may be for you. For more information on Financial Planning, please click HERE


Application Process

Please complete a loan application form and provide all supporting documents. You can reach our Loan Application webpage by clicking HERE. Also, please note that these loans are subject to VP Financial credit approval guidelines.

If you have any loan related questions, please call 604 683 2434 or email [email protected].


Questions and Answers

1. How long does it take to get the RRSP loan processed?

Once you have provided us with a completed loan application form and the required documentation, we will respond to your request within 1 to 2 business days. Response times will vary depending on the volume of requests. The most efficient way to submit your request is to email the signed, completed loan application form and your documents to [email protected] .


2. I want to pay off my loan or make an extra payment. How do I do that?

Please email our loans department at [email protected] to submit your request. Alternatively, please feel free to give us a call at 604 683 2434 or visit one of our branches if you have any questions.


3. How does the VP Financial Prime lending rate work exactly?

The VP Financial Prime lending rate is a variable rate. It may increase or decrease based on market conditions. In addition, all financial institutions use the interest rates set by the Bank of Canada as a benchmark when setting their respective Prime lending rate. A summary of the Bank of Canada interest rates can be viewed HERE.


4. Where can I find more information about RRSPs and how the contribution deductions work?

We recommend the following websites for your reference:

Government of Canada RRSP website: This website outlines all the rules and regulations with regard to RRSPs. You can directly access this webpage by clicking HERE.

Get Smarter About Money Financial Literacy Website: This website is a general financial literacy website put together by the Ontario Securities Commission. It offers excellent information regarding RRSPs. You can directly access this webpage by clicking HERE.


5. I heard that you can withdraw from your RRSPs and put the funds toward the down payment of a home purchase or to use for further education. Is that true?

Yes, it is true for both.

RRSP investments can be withdrawn to make up part of your down payment for your home purchase. There are a number of rules that go along with it. For your reference, please see the link below to the Government of Canada’s website for the Home Buyers program.

In terms of withdrawing from your RRSP to fund tuition costs, that is part of the Lifelong Learning Program. For your reference, please see the link below to the Government of Canada’s website for more details on the Lifelong Learning Program.

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