Borrow to invest against your RRSPs

[joelhfx]

Is it possible to secure a loan against my RRSP to provide for a REI downpayment?

I read in a blog here: Borrow to invest against your RRSPs something along those lines.

Sounds too good to be true.

 

[Thomas Beyer]

Yes you can.



It's like a line-of-credit, secured by your RRSP instead of other assets (like your home) ?

 

[moparcanuck]

I would be cautious. Using an RRSP as collateral for a loan can cause the RRSP to be included in your taxable income for the year (same as if you had withdrawn it). RRSPs can not be used for collateral, but TFSAs can.