The two Canadian financial technology startups are offering an RRSP top-up loan.
“In many cases, if you have unused RRSP room, you can increase the contribution to your RRSP by 67% by using a personal loan to top it up, and then pay back the loan out of your tax savings,” says Borrowell.
According to the companies, the RRSP Top-Up Loan is right for you if:
- You’re making an RRSP contribution but still have room to top up
- You have good credit and can qualify for a loan with a reasonable interest rate
- You have the financial discipline to pay back at least a portion of the loan with your tax refund
- Check your rate on an RRSP top-up loan now. It only takes a minute and won’t affect your credit score.
From raising one of the largest series A funding rounds in Canadian history, announcing $400 million in assets with over 10,000 clients in less than a year, acquiring a brokerage, and the launch of mobile app in Canada, Wealthsimple has become Canada’s largest online investment manager and was a finalist for the Canadian Startup Awards.
Meanwhile Borrowell has gained traction as lending moves away from institutional and toward micro-loans from individuals.