Borrowing to Make an RRSP Contribution 

Yes, you can borrow to make an RRSP contribution, but any interest you pay on the borrowed money will not be tax deductible.

For this reason, it is generally better to use available cash rather than borrowing. If you have to borrow to make the contribution, try to repay the loan as soon as possible to minimize the amount of non-deductible interest. Before borrowing, seek professional advice to ensure the benefits of making an RRSP contribution outweigh the costs of borrowing.

If you hold investments outside of your RRSP, it would be more appropriate to borrow to acquire these investments, as the interest on such borrowing would likely be tax deductible.

Information for RRSP Tips is provided as a public service by the Chartered Accountants of British Columbia.