I'm just surprised it took so many posts for someone to ask.
Okay, here goes.... And I don't want any guff about this from any dipshit armchair accountants here. This comes straight from my investment guy's newsletter, he's been managing my portfolio since 2000. The guy knows what he is talking about.
Temporary Loan Strategy: By example.
Bob can afford $1,000 savings/investment and decides to get an RRSP.
He makes $48,000 so his combined marginal tax rate is 35.5% (in Manitoba).
He borrows $536 to go with his $1,000 savings and makes an RRSP contribution of $1,536
No payments are due on the loan for 6 months. The rate is 7%.
He gets a tax refund of $545 because of the RRSP.
He uses the refund to pay the loan off including $9 for 3 months interest.
He has now put $1,536 in his RRSP for only $1,000. His RRSP growth is 50% more than without the Temporary Loan.
There it is.
Check with your own bank's investment advisor or your own accountant, but in Canada it is fully doable. It may even be similarly doable in the US to some degree, I don't know.
6 months from now come tax time some of you who are smart enough to take advantage of this technique will thank me.