RBC Mortgage Rates & Review
In today’s posts we are going to discuss about RBC Mortgage Rates. The Royal Bank of Canada is the largest bank so you will get to know about their mortgage rates.
RBC Mortgage Rates Review
The Royal Bank of Canada is the largest amongst the big 6 Canadian banks in terms of assets and market capitalization, and is one of the largest banks in the world.
RBC operates in over 30 countries around the world, including Canada, the U.S. and England.
They provide a diversified portfolio of financial services to customers with divisions such as: retail banking, commercial banking, wealth management, capital markets and insurance. Many of these products are offered globally, including RBC’s mortgage products and features that help you purchase a home.
RBC mortgage products
In addition to standard fixed and variable-rate mortgages, the Royal Bank of Canada (RBC) offers a variety of specialty mortgage products.
These additional products consist of the RateCapper Mortgage, the RBC Homeline Plan, the EnergySaver Mortgage, a Cash Back Mortgage, and a Self-Employed Mortgage product. These products are all outlined below.
Rate Capper Mortgage
This is a variable RBC mortgage rate with a maximum “capped” rate for a five-year term. This provides protection from rate increases if mortgage rates go up beyond that maximum “capped” rate. If rates go down, your rate goes down just as it would with a variable RBC mortgage rate.
RBC Homeline Plan
The Homeline Plan is RBC’s Home Equity Line of Credit (HELOC) offering. This plan allows you to consolidate existing debt to save on interest charges, then enjoy the benefit of both a mortgage and a line of credit in a single product.
Energy Saver Mortgage
The Energy Saver Mortgage is a financing solution with a rebate to help you reduce your home energy costs and improve your home’s energy efficiency. It essentially provides a $300 rebate on a home energy audit with the choice of a residential mortgage or the RBC Homeline Plan.
RBC Cash Back Mortgage
RBC Cash Back Mortgage provides a cashback payment at the time your mortgage is advanced. The amount of money you receive is based on the size and term of your mortgage, up to 7% of its value.
RBC’s Self-Employed Mortgage
If you’re self-employed, getting approved for a traditional mortgage can be difficult. RBC’s Self-Employed Mortgage is available for those who are self-employed and have difficulty obtaining competitive rates for buying, refinancing, renovating, and more. With this product, financing is available for up to 90% of the value of your home.
Vacation Home Mortgage
This plan is specially designed for vacation homes, letting you finance up to 95% of the value of a property primarily used for holidays.
Accessing RBC mortgage rates
You can access RBC mortgage rates by going to the bank directly. While RBC doesn’t work with brokers, it’s also worth speaking to a mortgage broker when comparing mortgages. This is because brokers work with multiple lenders, have access to exclusive deals, and can negotiate on your behalf. Even if you want to get a mortgage from one of the big banks, using a mortgage broker can still get you a better deal.
RBC mortgage pre-approval
After gathering the necessary background information such as annual income, employment information, existing assets and liabilities, and financial history, you can complete an online pre-approval application for your RBC mortgage rate in less than a few minutes.
RBC mortgage application checklist
As part of your mortgage application process, RBC will ask you questions relating to what you owe and own. These questions might include questions about: your current asset and debt mix; the projected expenses relating to the property you wish to buy (including taxes, heating costs, and condo fees); and whether you will be using the property to generate income. You’ll need information on all of these issues before you start an application.
RBC will also require also be some basic information about you, your finances, and the property you’re buying, including:
- Information that describes the property you’re buying
- Confirmation of your down payment
- Employment verification
- Information that describes your existing property
RBC Mortgage Features
Many RBC mortgages come with extra features that can help you pay down your mortgage faster or provide assistance during times of financial stress.
RBC Double-Up Payments
This feature lets you pay off your mortgage faster, allowing you to make mortgage payments for up to double your regular RBC monthly payment. This feature is in addition to your normal mortgage payments, and you can pre-pay any amount from $100, all the way up to matching the amount of your regular mortgage payment. Any prepaid amount will go directly to paying down your principal and can save you tens of thousands of dollars in interest over the lifetime of your mortgage.
RBC Annual Mortgage Prepayment
You can prepay up to 10% of the original principal amount of your mortgage once in every 12-month period without a mortgage penalty. Any additional prepayments over your monthly mortgage payment will go directly to your mortgage principal. Prepaying your mortgage can help you to limit the total amount of interest you will owe during your mortgage term, and helps you repay your mortgage much quicker.
All big 6 banks in Canada offer you the ability to pay down a maximum amount on closed mortgages ranging from 10% to 20% per year of the original principal amount:
RBC Fixed Mortgage Rates
RBC’s fixed mortgage rates help you reduce the risk of future interest rate fluctuations by “locking-in” a specific interest rate over your whole term. This gives peace of mind to many homeowners without having to worry about your interest rate potentially rising over your term, keeping your monthly principal and interest payments flat throughout.
If you are arranging a new mortgage for a future or current home, your fixed interest rate can be guaranteed for up to 120 days before the closing date of your home. If interest rates go up during that time, you will still be guaranteed this lower rate.
RBC posted mortgage rates
All of Canada’s big banks, including RBC, advertise three types of rates:
Posted rates are non-discounted rates that are mostly used as a point of reference and for calculating prepayment penalties (the fees charged if you break your closed mortgage early). Well-qualified borrowers should never accept a posted rate and are rarely offered one, except perhaps on renewal when the bank hopes to catch borrowers napping.
Special mortgage rates are typically limited-time promos that the bank offers on select terms. They sometimes come with specific restrictions and are rarely market-leading.
Discretionary rates are the best mortgage rates that RBC and other big banks can offer, but they’re only available to well-qualified borrowers. The big banks don’t publish discretionary rates. Instead, clients typically get quoted them by bank representatives following a negotiation process. The discretionary pricing available to individual borrowers can differ and is impacted by factors such as one’s credit-worthiness, history with the bank, assets and their negotiating ability.
10-year history of RBC prime rate