How do I choose between an RRSP loan or line of credit?

Learn how RRSP loans and RRSP lines of credit compare.


RRSP loans1

RRSP lines of credit1,2

Rates and fees

Choice of fixed or variable rate

No management fees

Variable rate

$1/month management fee

Repayment terms

Preset payment schedule and flexible terms from 3 months to 10 years

Repay the loan at your own pace

Payments can be deferred

Defer your first payment by three or six months while you wait for your tax return

Only pay interest on what you borrow while you wait for your tax return

Access new funds

You will need to submit a new application

You can reuse the line of credit without applying for RRSP financing each year

Minimum credit limit







1. Subject to credit approval by National Bank. Consult your accountant or tax advisor to find out if this strategy is right for you.

2. Subject to credit approval by National Bank of Canada. Account statements are produced monthly. Interest accrues as soon as an amount is drawn on the line of credit. $1/month management fee applies. Examples of credit charges calculated for a period of thirty (30) days based on the rate in effect on September 8, 2017:

  Average balance

Regular interest rate (no annual fees)


$3 000

Prime rate + 1.50% (4.70%)




The prime rate means the annual variable interest rate posted by National Bank, from time to time, and used by the Bank to determine the interest rates on the demand loans it grants in Canadian dollars in Canada.

Related questions

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