The Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under the master brand name RBC. They are recognized as one of the largest banks in Canada and hold a prominent position in the global market based on their market capitalization. With a workforce consisting of over 97,000 dedicated full-time and part-time employees, RBC efficiently serves a vast customer base of 17 million individuals in Canada, the United States, and 27 other countries.
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If you're looking for a mortgage, you might have considered RBC mortgage rates. RBC is one of Canada’s Big 6 Banks and offers a range of mortgage options to suit different needs and preferences. We'll go over an overview of RBC, RBC mortgage rates, RBC mortgage features, and other RBC products.
The Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under the master brand name RBC. Recognized as one of the largest banks in Canada and hold a prominent position in the global market based on their market capitalization. With a workforce consisting of over 97,000 dedicated full-time and part-time employees, RBC efficiently serves a vast customer base of 17 million individuals in Canada, the United States, and 27 other countries.
Renowned as one of North America's leading diversified financial services companies, RBC offers a comprehensive range of banking solutions, including personal and commercial banking, wealth management, insurance, investor services, and capital markets products and services. Their influence extends globally, catering to the diverse financial needs of customers around the world.
Benefit from competitive rates and peace of mind with a fixed rate mortgage. RBC offers this mortgage option to provide you with the stability of a locked-in interest rate for the duration of your mortgage term. Opting for a Fixed Rate Whether you are a first-time homebuyer, relocating to a new house, or renewing an existing mortgage, selecting a fixed rate mortgage eliminates concerns about potential interest rate fluctuations during your mortgage term. Secure Your Future with a Fixed Rate Mortgage A fixed rate mortgage ensures a specific interest rate that remains constant or "locked-in" for the entirety of your mortgage term. This guarantees clarity on the following aspects: The interest rate applied to your mortgage. The amount of your regular mortgage payments. The division of your payment between principal and interest. The duration it will take to fully repay your mortgage (amortization period).
Relish Rate Assurance For new mortgage arrangements, RBC offers a rate guarantee of up to 120 days before your home's closing date. Even if interest rates rise during this period, you will still benefit from the lower rate, as it is guaranteed. When it's time to renew your mortgage, RBC also provides a 30-day rate guarantee leading up to your renewal date.
Choose What Suits You Best RBC offers closed, open, and convertible fixed rate mortgages, allowing you to choose the term that aligns with your desired level of security and interest rate.
Unlock Potential Savings with a Variable Rate Mortgage With an RBC Royal Bank Variable Rate Mortgage, your payment amount remains fixed for the agreed term, but the interest rate fluctuates in accordance with changes in the prime interest rate. If our prime rate decreases, a larger portion of your payment will contribute to reducing the principal amount. Conversely, if our prime rate increases, more of your payment will go toward covering interest costs. Flexibility with Convertible Feature Our Variable Rate Mortgage offers the advantage of convertibility. This means you have the option to convert your mortgage to a different term at any time. This feature enhances both security and flexibility, enabling you to switch to a longer closed term if the current variable rate mortgage no longer aligns with your requirements.
Pre-Qualification: It's a quick assessment based on your financial information, such as income, debt, and assets, to determine how much a lender may be willing to lend you for a home purchase. It can be done over the phone or online and is often free. However, it's not a guaranteed loan. RBC's True House Affordability tool provides personalized calculations without affecting your credit score.
Pre-Approval: This is a more significant step where a lender checks your credit and verifies your financial details. If pre-approved, the lender makes a commitment (subject to conditions like property valuation) to lend you money. Pre-approval doesn't guarantee a specific rate or mortgage, as circumstances may change. To get pre-approved: A credit bureau report will be obtained, and any conditions must be met for full approval. Pre-approvals typically last for 60, 90, or 120 days, depending on the lender. Benefits of pre-approval include saving time by house-hunting within your budget, knowing your monthly payments and down payment, gaining credibility with real estate agents and sellers, and potentially having more negotiating power. Pre-approval may also offer a rate lock to protect against rising interest rates. Remember, there's no cost or obligation to accept the mortgage with that particular lender when pre-approved.
Increasing your regular payment
Take advantage of the flexibility offered by RBC Royal Bank's powerful Double-Up feature, allowing borrowers to make extra payments towards their mortgage. This unique option permits individuals to prepay any amount, starting from $100 and extending up to the principal and interest portion of their regular monthly mortgage payment, on any chosen payment date.
Did you Know?
It's worth noting that the Double-Up payment made by borrowers is directly allocated towards reducing the principal balance of their mortgage. This proactive approach effectively shortens the overall lifespan of the mortgage and results in substantial savings on interest costs.
RBC recognizes that making annual principal payments can be an effective strategy to save on interest costs and shorten the lifespan of your mortgage. Here are the options available to borrowers:
Closed Mortgage Prepayment: If you have a closed mortgage, you have the opportunity to prepay up to 10% of the original principal amount of your mortgage once within a 12-month period. This prepayment is directly allocated to reducing the principal balance of your mortgage, effectively accelerating your progress towards full homeownership.
Double Up Regular Mortgage Payments: Another option is to double up your regular mortgage payments, which consist of both principal and interest. By choosing this method, you can make significant strides in paying down your mortgage and potentially reduce the overall interest paid over time.
Open Mortgage Principal Prepayment: If you hold an open mortgage, you have even more flexibility. You can make lump sum principal prepayments of $500 or more as frequently as you desire. This allows you to actively manage and reduce your mortgage balance according to your financial capabilities.
Principal Prepayment at Renewal: When it's time to renew your mortgage, you also have the opportunity to make principal prepayments of any amount you wish towards your mortgage principal. This provides you with the chance to make substantial progress in paying down your mortgage right from the start of the renewal term.
RBC's approach to lump sum mortgage prepayment offers borrowers various avenues to save on interest costs and actively contribute to reducing their mortgage balance.
RBC offers borrowers one of the industry's lowest prepayment options, allowing them to contribute 10% towards their original mortgage amount annual.
RBC's Skip-A-Payment Mortgage Option: Providing Flexibility with Consideration
RBC understands that financial situations may sometimes require flexibility in mortgage payments. To address this, they offer the Skip-A-Payment option, allowing borrowers to skip mortgage payments (including both principal and interest) once every 12 months, under certain conditions:
Eligibility Requirements: To qualify for Skip-A-Payment, your mortgage must be up to date with no outstanding arrears. Additionally, the total of your current mortgage balance and the payments you wish to skip must not exceed the original amount of your mortgage.
Duration and Payment Types: You can choose to skip up to four consecutive weekly payments, up to two consecutive bi-weekly or semi-monthly payments, or one monthly payment. It's important to note that while mortgage payments are skipped, you are still responsible for your usual insurance premiums and property tax installments, where applicable.
Impact on Mortgage Balance: When a payment is skipped, there is no fee associated with this option, and your regular mortgage payments will remain unchanged throughout the term. However, the interest on the skipped payment is added to your outstanding balance, resulting in an increased mortgage balance. This additional amount accrues interest, which will be taken into account at the time of renewal when adjusting your monthly payment to accommodate the higher balance. It's essential to consider that using the Skip-A-Payment option may lead to increased interest costs over the life of your mortgage.
Financial Considerations: Before opting for Skip-A-Payment, it is crucial to carefully evaluate your financial situation and priorities. While this option provides temporary relief, it's important to understand that it may result in higher interest costs in the long run. Assessing your needs and considering the potential impact on your overall mortgage balance is recommended.
RBC's Skip-A-Payment Mortgage Option offers borrowers the ability to manage their cash flow in challenging times. However, it's essential to weigh the benefits against the potential consequences to make an informed decision that aligns with your financial goals and circumstances.
When individuals embark on the journey of purchasing a home, it represents a significant milestone and financial commitment. To ensure the continuity of mortgage payments in the face of unexpected events such as disability, critical illness, or death, it becomes essential to take proactive measures to safeguard both the home and the well-being of loved ones.
Choosing a home involves careful consideration of factors like the neighborhood and schools, creating a unique lifestyle for the family. With RBC HomeProtector insurance, homeowners can secure their mortgage balance through customizable coverage options. This insurance program offers various choices, including life insurance, critical illness insurance, and disability insurance. By tailoring the protection to their needs, individuals can have peace of mind, knowing that in the event of death, critical illness diagnosis, or disability, the outstanding mortgage balance will be paid off or reduced.
HomeProtector insurance helps preserve personal insurance coverage, safeguards savings, and provides non-taxable benefits. Homeowners can select coverage options such as life insurance, which pays off or reduces the outstanding insured RBC Royal Bank mortgage balance in the event of death, critical illness insurance, which pays off or reduces the outstanding insured mortgage balance if diagnosed with a covered critical illness, or disability insurance, which maintains regular mortgage payments in the event of a disability. The coverage amounts vary, with up to $750,000 for life insurance, up to $300,000 for critical illness insurance, and up to $3,000 per month for up to 24 months for disability insurance. These coverage options not only provide financial protection but also help preserve personal insurance and safeguard savings for their intended purposes. HomeProtector Insurance, underwritten by The Canada Life Assurance Company, offers homeowners the assurance that their home and mortgage are protected, allowing them to focus on enjoying their investment and nurturing their loved ones.
The Mortgage Break Penalty Calculator by RBC helps borrowers determine the potential cost of prepaying their closed mortgage. Here are key points to understand:
Calculation: The prepayment charge is the greater of three months' interest or interest for the remaining term, calculated using the interest rate differential (including any discount in your mortgage docs) for fixed-rate mortgages and a three-month interest charge for variable rate mortgages.
Annual Prepayment Option: Closed mortgages allow prepayments up to 10% of the original mortgage balance once per anniversary year. If the prepayment exceeds this limit, a charge applies to the entire prepaid amount.
Reducing Prepayment Charge: By utilizing the Annual Prepayment Option before fully paying off the mortgage, borrowers can lower the outstanding balance and, consequently, the prepayment charge.
Situations for Prepayment Charges: Prepayment charges may occur when making prepayments exceeding the 10% option, fully prepaying the mortgage before the maturity date, renewing or refinancing the mortgage early, or transferring the closed mortgage to another financial institution prior to maturity.
For more detailed information and to estimate your prepayment charge, you can access RBC's Mortgage Break Penalty Calculator.
When individuals are interested in purchasing an investment property, they can explore the features and benefits of the RBC Investment Property Mortgage. This mortgage option offers financing for up to 80% of the appraised value of the rental property, providing a suitable solution for their needs.
With competitive rates and a variety of terms available, the RBC Investment Property Mortgage is ideal for those considering various investment strategies. Whether individuals aim to create an income-generating rental portfolio, convert their current home into a rental property, or purchase a property for their child's residence, this mortgage option caters to their requirements.
To qualify for the RBC Investment Property Mortgage, individuals need to have a good credit history and demonstrate sufficient rental income. This can be established through existing tenancy documentation or an opinion of market rent. Additionally, it is important to have enough non-rental income to meet the mortgage obligations.
By meeting these qualifying criteria, individuals can take advantage of the RBC Investment Property Mortgage and turn their investment property goals into a reality.
Owning a vacation home can become a reality with the RBC Vacation Home Mortgage. This innovative mortgage solution allows you to finance up to 95% of the appraised value of your dream vacation property, making it easier than ever to turn your vision into a tangible asset.
With competitive rates and flexible terms, the RBC Vacation Home Mortgage offers a range of features and benefits tailored to meet your needs. Whether you're seeking a peaceful retreat or a place to create lasting memories with family and friends, this mortgage option provides the financial support to make it happen.
To qualify for the RBC Vacation Home Mortgage, you'll need a solid credit history, demonstrate sufficient rental income or market rent potential, and have enough non-rental income to meet the mortgage obligations. By meeting these criteria, you can take advantage of Canada's first mortgage solution that empowers you to finance up to 95% of your vacation home's appraised value.
Now is the time to make your dream of owning a vacation home a reality with the RBC Vacation Home Mortgage. Experience the joy of having your own personal oasis where relaxation, adventure, and unforgettable moments await you. RBC provides specialized mortgage solutions for Canadians seeking to purchase their dream homes in the United States. With comprehensive support throughout the U.S. home buying process, RBC assists customers at every step, from pre-approval to doorstep.
Highlights of RBC's U.S. mortgage offerings include pre-approval with a 120-day validity period and a limited-time special offer of no underwriting fee on new mortgages until October 31st, 2023.
RBC's U.S. mortgages cater to the unique needs of Canadian buyers, allowing the use of Canadian credit history, financing in all 50 U.S. states, and flexible term options (3, 5, 7, or 10 years) with free renewals. These mortgages are amortized over 30 years, ensuring affordable monthly payments. By making a 20% down payment along with closing costs, customers can reduce upfront foreign exchange costs. Additionally, RBC's U.S. mortgages offer the convenience of penalty-free lump-sum payments for increased payment flexibility.
The RBC Self-Employed Mortgage, a mortgage solution designed specifically for self-employed individuals seeking competitively-priced financing for their homes. Whether you're a business owner or self-employed, RBC can help you finance your new home or tap into the equity of your existing property.
With the RBC Self-Employed Mortgage, you have flexible options. If your recent Notice of Assessment shows sufficient income, you can borrow up to 80% of the purchase price or property value without default insurance, or up to 95% with default insurance. Additionally, if you require additional income from your business to qualify, and you have a good credit history, you may be eligible to finance up to 80% of your home's appraised value when refinancing, or up to 90% of the home you're purchasing.
Documentation requirements typically include your most recent Notice of Assessment and proof of your self-employed status. However, additional documents may be requested depending on your application's structure.
The RBC Homeline Plan, also known as a HELOC (Home Equity Line of Credit), offers valuable benefits for homeowners:
Low interest rate: Enjoy a competitive variable interest rate on the Royal Credit Line, making it an attractive borrowing option compared to other products.
Flexible repayment options: Take advantage of flexible repayment options, such as interest-only monthly payments or paying off the balance partially or in full whenever it suits you.
Growing available credit: As you pay down your mortgage, the available credit on your HELOC increases, allowing you to access additional funds based on your home equity.
Convenient access to credit: Access your credit limit easily through various channels like RBC Online Banking, the RBC Mobile app, RBC ATMs, branches, or by writing a cheque.
Is the RBC Homeline Plan (HELOC) Right For You?
The RBC Homeline Plan (HELOC) empowers homeowners to leverage their home's equity for various purposes:
Home improvements: Enhance your home's value by using the Homeline Plan (HELOC) for renovations, repairs, or appliance upgrades.
Education: Invest in your future or the education of a loved one by utilizing your home equity through the Homeline Plan (HELOC).
Debt consolidation: Consolidate high-interest debts into a single, lower-interest Homeline Plan (HELOC) to save money and simplify your financial management.
Emergency readiness: Access funds from your Homeline Plan (HELOC) during unexpected financial challenges, such as job loss, medical expenses, or urgent car repairs.
The RBC Homeline Plan (HELOC) offers homeowners a flexible and convenient solution to tap into their home's equity and achieve their financial goals."
RBC Cash Back Mortgage, a mortgage option designed to provide financial assistance when purchasing a new home. The RBC Cash Back Mortgage offers the opportunity to receive cash back, allowing you to cover various expenses such as land transfer tax, lawyer's fees, moving costs, closing costs, and more.
This mortgage solution is particularly beneficial for first-time home buyers who have a minimum down payment of 5%. Depending on the purchase price, a higher down payment percentage may be required.
The amount of cash you can receive with the RBC Cash Back Mortgage is based on the size and term of your mortgage, offering up to 7% of its value or a maximum of $20,000.
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