RBC mortgage rates

Rates at RBC

Here’s what you need to know about mortgages at RBC.

RBC Brand History

The origins of Canada’s largest bank date back to 1864, when it was known as the Merchants Bank of Halifax. Over time, Royal Bank of Canada (RBC) has become one of the most respected financial institutions in North America. It is the largest of the six major Canadian banks in terms of assets and market capitalization. It offers a wide range of financial products and solutions to its clients through its various business units. These include retail banking, commercial banking, wealth management, capital markets and insurance. RBC operates in 33 different countries (but primarily in North America), including Canada, the United States and England. The bank now employs nearly 81,000 people and has approximately 17,000 customer accounts worldwide.

Its various divisions offer a variety of financial products and services, including the following: retail banking services, commercial loans, wealth management, equity investments, fixed income securities, credit cards, mortgages, insurance and mutual funds. Some of these products are available worldwide, including RBC products and features that help people buy homes.

Thanks to an extensive presence, both online (RBC.ca) and through its vast branch network, RBC offers Canadians, among other things, access to financial services from coast to coast. With more than 1,200 locations across Canada, RBC has the capacity to serve any customer anywhere in the country and elsewhere in the world.

What is a fixed rate at RBC?

To avoid the risk associated with interest rate fluctuation, RBC offers a range of fixed-rate mortgages where you lock in an interest rate for the entire duration of your mortgage. With these products, you get a secure rate for the entire duration of your mortgage loan, whether interest rates fall or rise afterwards. You also benefit from the additional security of knowing that if interest rates increase, you won’t pay additional fees to adjust your payment amount. This security makes RBC’s fixed-rate mortgage loan often more popular than the variable-rate loan.

With a five-year fixed-rate mortgage loan, you don’t need to wonder if you’ll be able to pay your monthly payments when they’re due. You know exactly how much you’ll pay each month, so you don’t have to guess. And since you won’t have to worry about refinancing before the end of the term (unless you want to), you can rest easy knowing you won’t have surprises later.

What is a variable rate at RBC?

RBC’s variable-rate mortgages offer you a fixed payment throughout the duration of the loan, although the interest rate may change. If the prime rate drops, a larger portion of your monthly payment goes toward paying down the balance of your real estate loan, while if the prime rate increases, a larger portion of your monthly repayment goes toward paying interest. Therefore, it can be an excellent investment option for homeowners who expect interest rates in Canada to fall the following year.

With a convertible mortgage loan, you can choose between a fixed-rate loan and a variable-rate loan. If interest rates fall, you can convert your loan to a fixed-rate mortgage loan, which will keep your monthly payments stable for years.

What are the posted rates at RBC?

RBC offers traditional mortgages, including fixed rates and variable rate loans.

With fixed-rate mortgages, Royal Bank of Canada offers to guarantee interest rates for 120 days (30 days for renewals). RBC offers fixed rates of 2, 3 and 5 years.

Variable-rate mortgage loans are generally convertible to fixed-rate mortgage loans. Here are some of the most common variable rates:

• The 5-year fixed-term mortgage special offer;
• The posted interest rate for a 5-year open-term loan.

The RateCapper capped-rate mortgage, for example, allows you to benefit from lower interest rates while having a safety net if rates go back up.

How to get a mortgage at RBC?

You must apply for mortgage pre-approval online, directly on the website, making sure to prepare all required documents before submitting your application:

• The purchase offer for the property (property type, location and size);
• Your down payment;
• Your monthly income (from pay stubs, tax returns, etc.) and any proof of income from the previous three years (if you are self-employed);
• Copies of school or municipal tax bills;
• Your company’s financial statements, if applicable;
• Your debt situation (the amount of your debts relative to your income, etc.);
• Your credit score;
• Your identity and marital status;
• Your property taxes;
• The co-borrower’s situation (if applicable).

If you are considering getting a mortgage from RBC, one of the best starting points is to visit the bank’s website. There you will find information about the types of mortgages offered by RBC and how they compare to similar products offered by other lenders. Once you have decided on the type of mortgage you want to apply for, you can fill out an application. You may also consider taking advantage of special offers that RBC may propose at certain times of the year.

How to check RBC rates?

We update our mortgage rate comparison tool daily so you can see which banks offer the best interest rates for mortgage loans.

If you want to see the mortgage details for yourself, you can visit the Royal Bank website and check the relevant section!

How to get mortgage pre-approval at RBC?

If you want to immediately establish your prequalification for financing, you simply need to click the button on the “Mortgages” page. A mortgage broker will call you back within 24 hours to schedule an appointment with you and determine if you are eligible for financing.

A pre-approval means that your credit score has been verified by a lender who determines if you are eligible for financing. It also helps protect you against rising interest rates if you borrow at a guaranteed rate for a certain period.

Getting mortgage pre-approval before buying a home has many advantages:

• You can determine a range for your financial capacity;
• You can budget your monthly payments;
• You are not obligated to take the loan if you no longer want it;
• You lock in an interest rate for a determined duration;
• You can convince sellers, brokers, real estate agents, etc., that your project is legitimate and serious;
• You have concluded an agreement with the bank for it to grant you a loan if you meet certain conditions.

If you want to compare the best mortgage rates available in Quebec, use our online mortgage rate comparison tool.

Mortgage contract breaking penalty at RBC

Life circumstances sometimes prompt you to break an existing mortgage contract before its expiration date. This can happen if you want to pay off the loan early, modify the loan conditions or refinance with another bank. If you decide to do this, you will have to pay mortgage breaking penalty fees, the cost of which depends on various factors.

To make the best decision, you can count on RBC’s online calculator. In just a few minutes, it helps you determine whether it’s better to pay off your mortgage early or continue paying your current loan.

How to contact RBC’s mortgage lending service?

If you want to apply for a mortgage with Royal Bank, you can call them at 1-844-248-6327.

If you are already a customer of the bank, you can make an appointment by logging into your online banking account, visiting the bank’s website, calling customer service or speaking to a financial advisor at one of the RBC branches.

What is the prime rate used for at RBC?

A bank’s prime rate is used to determine the base rate for most of its products, including variable-rate mortgages, traditional lines of credit and home equity lines of credit (HELOC). The prime rate is generally associated with an additional spread based on the product and its risk level.

The prime rate is used by banks to set their lending rates. High-risk loans tend to have higher interest rates than low-risk loans because of the risks they entail. Low-risk loans, such as mortgages, often have lower interest rates than high-risk loans, such as credit cards and auto loans, because of the security they offer them.

What are the features of mortgage loans at RBC?

RBC offers its customers a wide range of mortgages and other loan products that may suit them. Some RBC mortgages come with additional features that can help you make faster repayments or be better prepared in case of financial stress periods.

RBC Royal Bank’s Double Up® Payment Option

Thanks to this feature, you can pay off your mortgage faster. You can prepay any amount between $100 and the amount of your mortgage’s normal monthly payment. Any amount you pay in advance will be applied directly to reducing your mortgage balance. This can save you several thousand dollars over the life of your loan.

If you pay off your mortgage earlier, you will save on interest charges, which means you can use that money for something else.

RBC Mortgage Annual Prepayment

You can prepay your mortgage up to 10% of the initial principal amount once every 12 months without incurring a mortgage penalty. Any prepayment in addition to your monthly payment will be applied directly to your principal. Prepaying your mortgage can reduce the overall interest cost of your home and allow you to pay off your loan faster.

This low prepayment percentage can be an obstacle from a dynamic repayment perspective. If you’re looking for ways to accelerate your mortgage repayment, an open mortgage could be a good choice. Open mortgages allow you to pay off the entire loan at any time and completely free up your cash flow.

Mortgage Payment Vacation®

You can skip monthly mortgage payments once a year using this feature. Depending on how frequently you pay your mortgage, here are different payment exemption options:

• Four consecutive weekly payments;
• Two consecutive bi-weekly payments;
• One monthly payment.

If you miss a mortgage payment, the interest rate for that period is automatically charged to your account. Over time, this translates to an increase in the total amount due on your loan, but your monthly mortgage payments remain the same. You can repay the missed payments at any time.

Homeprotector® Insurance

This is a form of mortgage insurance that can help you pay off your loan in case something happens to you. Your premiums will not change, unless your mortgage balance changes and you refinance your loan. Homeprotector insurance is optional, but if you don’t have another type of insurance, it can offer you some peace of mind. Your monthly premium depends on your age, the level of coverage you choose, and the number of people covered by your policy.

Other RBC Mortgage Products

RBC offers specialized mortgage products to borrowers who want to buy their dream home but need help financing it. Here are some of them!

The Second Home Mortgage

RBC’s Second Home Mortgage is the first mortgage option offered in the country for Canadians who want to buy their second residence faster. This mortgage allows you to borrow up to 95% of the financing for a second residence.

The Investment Property Mortgage

You can get financing up to 80% of the estimated value of your rental property thanks to RBC’s investment property mortgage. If you are looking for a mortgage on an investment property, this RBC product could be the ideal option for you if you are thinking of:

• Renting one or more rental properties to generate additional cash flow and build real estate equity;
• Converting your current home into a rental property;
• Buying a rental property where your child will live.

The Cash Back Mortgage

This is a special program that gives you up to 7% (or $20,000) cash back on your mortgage loan. The cash back is added to your mortgage balance and is repaid as part of your loan.

The amount available for a cash back mortgage depends on your credit score, mortgage conditions, mortgage amount, your current income and whether or not you live in the property.

If you’re looking for an affordable mortgage option, the RBC cash back mortgage could be the ideal choice for you!

The RBC Self-Employed Mortgage

If your most recent notice of assessment shows that your income is sufficient to pay the loan, you can borrow up to 80% of the purchase price or home value without default insurance, or 95% with default insurance.

If you need to borrow additional funds from your business for eligible purposes, and if you have an excellent credit score, you could potentially get a loan representing up to 80% of your home’s estimated price when refinancing and up to 90% of the property you are purchasing with our self-employed loan.

If you want to finance up to 65% of your home’s value, there are no additional fees or insurance premiums.

To finance between 65% and 90% of your home’s value, additional insurance is required.

American Mortgage Options for Canadians

With branches in six southeastern U.S. states, including Georgia, Florida and North Carolina, it’s easy for Canadians to get a mortgage in America, even without credit history in that country, thanks to RBC.

If you are a Canadian looking to buy a home in the United States, you may not have credit history in that country, which makes it difficult to obtain financing. However, by leveraging your credit history in Canada, you can obtain financing from RBC in the United States, even if you don’t have credit in that country.

Whether you are buying a home in the United States for the first time, renovating an existing property or refinancing an existing loan, Royal Bank of Canada will help you choose the right option for you.

RBC’s Organizational Structure

Royal Bank of Canada is committed to upholding the highest standards in corporate governance. These standards reflect evolving best practices and are consistent with its strategy and the risks it is prepared to take.

Good governance means having an active board of directors that interacts with all stakeholders, that knows the business well and has the courage to challenge management when necessary, that understands the challenges and opportunities associated with industrial and economic changes and that establishes high standards and principles that guide RBC’s success and contribute to community success.

RBC was created in 1869 under a private act of Canada and is regulated by the Bank Act, S.C. 1991, c.46.

The board exercises its powers in accordance with the Bank Act and the rules of the Toronto Stock Exchange, the New York Stock Exchange and the U.S. Securities and Exchange Commission.

If you want to buy a home, make a request for a new purchase without delay.

Do you have a project idea? Then, get the financing you need by requesting refinancing.

Xperto: the mortgage rate experts!