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's large presence both online and with its large branch network can be very helpful when doing business with the bank. There are over 1200 RBC branches across Canada and the company has over 85,000 dedicated employees, which means that no matter where you need a loan or mortgage throughout the country, RBC has the resources to meet your needs. RBC's large footprint has allowed the bank to serve over 16 million customers worldwide, with the majority being in Canada.
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.
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
RBC variable rate mortgages provide you with fixed payments over the mortgage term; however, the interest rate will fluctuate with any changes in the prime interest rate. If RBC’s prime rate goes down, more of your payment will go towards paying off your principal; if RBC’s prime rate goes up, more of your payment will go towards interest payments. As a result, this can be a great financial tool for those expecting Canada’s interest rates to fall in the upcoming year.
A convertible mortgage is a variable rate mortgage that will allow you to convert to a fixed rate mortgage at any time. This fixed rate mortgage will be based on the rates your lender is offering at the time you convert it. This feature provides security and flexibility, as it enables you to lock-in a fixed rate longer term if interest rates fall, rise, or stay the same.
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
Canada’s largest bank has a unique history behind it. RBC started off as The Merchants Bank of Halifax in 1864, than continued to grow throughout the years across Canada and globally:
Many RBC mortgages come with extra features that can help you pay down your mortgage faster or provide assistance during times of financial stress.
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.
|Bank||How The Feature Works|
|RBC||Each month you can include an additional mortgage payment for up to 100% of your regular monthly payment.|
|TD Bank||Include an additional mortgage payment for up to 100% of your regular monthly payment once per year.|
|ScotiaBank||Each month you can include an additional mortgage payment for up to 100% of your regular monthly payment.|
|BMO||Permanently increase your mortgage payment by up to 20% each month. This can be changed once every calendar year.|
|CIBC||Each month you can include an additional mortgage payment for up to 100% of your regular monthly payment.|
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 has one of the lowest prepayment amounts you can pay at only 10% of your original mortgage amount. For some buyers, this may get in the way of you paying your mortgage off very aggressively, however getting an open mortgage where you can pay the loan off at any time in full may be a better option if this is the case.
This feature lets you quickly and easily skip a month's worth of mortgage payments once every 12 months. depending on how frequently you pay your mortgage, you are able to skip mortgage payments in the following intervals:
When you skip a mortgage payment, the interest for this time period is automatically added back to your mortgage. Overtime this will mean you will pay more in interest over your term, however your monthly mortgage payment will not change and you can pay back your skipped payments at any time. If you have an RBC mortgage and want to use this feature, you can do it by logging into your mortgage account and selecting the “Skip A Payment” link, then following the instructions on that page.
|Bank||How The Feature Works|
|RBC||Every 12 months, skip up to the equivalent of 1 months worth of mortgage payments.|
|TD Bank||Every 12 months, skip up to the equivalent of 1 months worth of mortgage payments partially or in full.|
|ScotiaBank||You can miss one payment as long as you have doubled your monthly mortgage payment at least once over your term.|
|BMO||Every 12 months, skip up to the equivalent of 1 months worth of mortgage payments.|
|CIBC||CIBC does not offer this feature.|
|National Bank||National Bank does not offer this feature.|
This program can help you to ease your monthly payments if any unexpected expenses or job loss occurs, giving you time to rebound. If you have additional add-ons such as mortgage protection insurance or if you are paying property tax through RBC, you will still be required to make these additional payments during the periods you skip. It's also important to be aware that skipping periods will add to your interest payments that you will owe over your term, as interest still accrues. If you are planning on using this feature for a period, it's important to inform RBC as soon as possible, with requests taking up to 5 days to process.
This is a form of mortgage protection insurance that can help pay for your mortgage in the event of death, critical illness, or disability. Premiums are set when you apply and will not increase as long as your mortgage balance does not increase and you don't refinance your mortgage. Getting HomeProtector Insurance is optional, however it may provide some peace of mind, especially if you do not have individual life insurance. Since this is an add-on coverage, insurance payments are separate from your mortgage.
The monthly cost of RBC HomeProtector Insurance is based on your age, amount of coverage, and how many people are getting covered. Monthly premiums are charged for every $1000 of your initial mortgage balance, with the following costs per $1000 in coverage, per month:
|Age||Single Coverage (SC)||Joint Coverage (JC)||Monthly Premiums on $500,000 in Coverage|
|18-30||$0.09||$0.15||(SC): $45 (JC): $75|
|31-36||$0.13||$0.22||(SC): $65 (JC): $110|
|37-41||$0.20||$0.34||(SC): $100 (JC): $170|
|42-45||$0.29||$0.49||(SC): $145 (JC): $245|
|46-50||$0.40||$0.68||(SC): $200 (JC): $340|
|51-55||$0.52||$0.88||(SC): $260 (JC): $440|
|56-60||$0.70||$1.19||(SC): $350 (JC): $595|
|61-65||$0.95||$1.62||(SC): $475 (JC): $810|
All the big 6 banks in Canada offer their own form of mortgage protection insurance, with mortgage life insurance and critical illness insurance being offered across all 6 banks:
|Bank||Mortgage Life Insurance Coverage Limits||Add-on Coverage(s)|
|RBC||$750,000||Critical Illness & Disability Insurance|
|TD Bank||$500,000||Critical Illness Insurance|
|ScotiaBank||$1,000,000||Critical Illness & Disability Insurance|
|BMO||$600,000||Critical Illness, Disability, & Job Loss Insurance|
|CIBC||$750,000||Critical Illness & Disability Insurance|
|National Bank||$1,000,000||Critical Illness & Disability Insurance|
With an RBC mortgage you will have the option to or be required to make monthly property tax payments to RBC along with your monthly mortgage payments. RBC then uses this money to pay your property taxes on your behalf when they become due.
You may be required to pay your property taxes through the bank depending on: if you are a first time home buyer, your mortgage terms, your down payment amount, and your credit history. Even if you are not required in your mortgage to pay through RBC, you are still able to do this by contacting the bank to arrange this feature with your mortgage. The reason RBC makes this feature mandatory for some mortgages is so that home buyers do not fall behind on property tax payments, which will then act as a lien on the house. All the major Canadian banks also offer the choice to pay property taxes with them through your mortgage.
Every month, even in months where you defer your mortgage amount you will have a property tax estimate that you will pay to RBC. They are able to estimate how much your property taxes will be based on information about the property tax rate in the city, along with your appraised value and amount paid the year prior. This money you pay every month will stay with RBC until it comes time to pay the yearly amount, which RBC will then do on your behalf. If your actual yearly property tax payment is above the estimate, RBC will advance the money needed to cover the shortfall, which you will then need to pay back with interest. If the estimate is above the actual amount of property taxes, RBC will give you interest on the difference.
|✔ Pros||✖ Cons|
The biggest benefits of having RBC pay your property taxes on your behalf is how much easier it makes budgeting and paying. Instead of having to remember to pay the bill and when to pay it, RBC will do this all on your behalf. As well, it allows you to better plan in advance for how much the bill will be with it being included in your monthly mortgage payments. This prevents you from not having the amount in your bank account at the end of the year to pay.
The cons of paying property taxes through the bank is that you will miss out on interest by not holding your budgeted property tax payments in your savings account. Instead, RBC holds the money on your behalf, and you aren't able to earn interest on it. As well, it's likely that your property tax estimate paying through the bank will have a cushion built into it, meaning you will likely be making slightly higher payments than your actual property tax bill will be, which will then be used in the future for your next property tax bill. This leaves more of your money locked up for the year as you wait for your municipal assessment.
The Royal Bank of Canada also offers specialty mortgage products for borrowers with different objectives and criterias.
This is a specialized mortgage for borrowers looking to buy an investment property or convert their current homes to a rental property. You can finance up to 80% of the appraised value of the property with this mortgage.
In order to get an investment property mortgage, you will need the following:
Since most investment properties are not owner occupied, many are not eligible for high-ratio mortgage insurance. This will mean you will need to have a down payment of over 20%, a good credit score, and the financial flexibility to cover the mortgage and your living expenses. It will also mean you will pay higher interest rates on the mortgage amount, meaning you will need to budget for these higher costs when deciding if purchasing an investment property is feasible for your situation. With over 1200 branches across Canada, RBC offers the convenience and flexibility to purchase an investment property almost anywhere in Canada using a mortgage from them.
One of the only things you will not be able to change about a property is where it is located. This means that finding a property in a location that is in a good neighbourhood, with good job prospects, close to amenities, and is in demand to rent may make for a good long term investment.
Some major costs to be aware of when looking to purchase a rental property and determining the attractiveness of the opportunity include:
|Homeowners Insurance||To protect your property from damage. This will vary depending on your coverage, where you live, and the age and type of property you are insuring.|
|Legal Fees & Administrative Costs||This includes the costs of drafting rental agreements, checking a tenant’s credit history, and the day-to-day expenses of managing your property.|
|Property Taxes||No matter what city you live in, you will need to pay property taxes based on your appraised home value.|
|Repairs & Maintenance||Especially with older properties, things will break or need replacing, along with constant maintenance to upkeep the property.|
|Vacancy Allowances||It is important to plan ahead for any times your property may sit empty without rent, which will depend on the demand in the area and tenant turnover.|
How much you pay for a property will ultimately determine your return on investment when purchasing an investment property. This makes the price you're paying very important so that you are able to get a return on your investment that is worth your risk, time, and money. Real estate properties are usually valued based on their capitalization rate, which is how much operating income they produce, divided by their purchase price. A higher capitalization rate may mean you can get a higher return on investment, but it usually will also mean a higher-risk property. A low capitalization rate could mean that a property is expensive for what you're getting, but it could be because of the high demand for properties in the area.
If you decide to manage the property without the help of a property management company, you will be responsible for managing the day-to-day obligations of the property. This includes renting out the property, collecting the rent, resolving tenant issues, and organizing paperwork.
This option includes single family homes, condos and townhouses. These types of rental properties can be attractive for first time real estate investors or those looking for lower priced options to build equity. Single unit properties will usually have 1 tenant, unless each room is being rented out.
Typically this is for properties between 2 to 6 units where the owner owns the entire building, rather than just a unit in the building. Because it has more units, multi-unit residential properties will usually be much more expensive than single unit properties. Since there are multiple units, the owner may choose to live in one unit, while renting out the other units, or rent out all the units and live somewhere else.
This includes income producing properties that are over $750,000, and require a commercial mortgage loan from RBC instead. Commercial real estate includes the following:
Since these properties usually have much higher prices, you will likely need a much larger loan than a single unit or multi-unit income property. Commercial real estate is typically purchased by more experienced real estate investors with a large amount of equity.
This is a specialized mortgage for borrowers looking to buy a second home or vacation property. You can finance up to 95% of the appraised value of the property depending on if you already own a home and the purchase price.
In order to finance 95% of the appraised value of the home you will need mortgage insurance, which is only available if you don't own a home. If you do own a home already, you will need at least 20% down. If it isn't your first home and you have substantial equity in your other home(s), you may be able to finance the down payment using some of that equity.
For those looking to get a property to rent out and use in a vacation destination, an income property mortgage may also be another option to purchase with. Considering that another home to pay a mortgage on would mean higher overall housing costs and therefore higher debt service ratios, including your potential rental income and renting out your vacation home when it's not in use can help you pass mortgage stress tests and make getting a vacation home more affordable.
For those looking to purchase a vacation home outside of Canada, RBC’s presence throughout the USA can make the process of getting approved for a mortgage much easier. RBC allows Canadians who bank with them to potentially leverage their Canadian credit score in order to get qualified for a mortgage in the US. This can be very helpful, considering some Canadians can struggle getting financing outside of Canada or may require a very high down payment in order to get financing. This may open up more opportunities to buy a vacation home in Florida or in states throughout the USA.
If your vacation home is not a permanent residence and you already have one home, you will be subject to capital gains tax if you sell your home in the future for more than your adjusted cost. Your adjusted cost will be your total purchase price and the money you spent on any renovations for the home, meaning it's important to keep track of these.
Another important tax implication of a vacation home is how rental income is taxed. You are able to deduct all the expenses that you have from renting the home out, including maintenance, advertising, utilities, interest, and even depreciation on the home. This is an important tax benefit that will make any rental income you earn from the property that much more lucrative.
This is a special program that allows you to get up to 7% of your mortgage value, for up to a maximum of $20,000 in cash back. The cash back will be added to your mortgage amount and paid back as part of your mortgage.
The amount of money you will be able to get with a cash back mortgage will depend on your credit history, mortgage terms, mortgage size, income, and if you're occupying the home or not.
Depending on your home purchase price and your eligibility, you may be able to receive the following amounts in cash back when you purchase:
|Mortgage Amount||2% Cash Back||4% Cash Back||6% Cash Back||7% Cash Back|
A cash back mortgage allows you added financial flexibility, which can help you to consolidate debts that have a higher interest rate into your mortgage, cover home closing costs, do a renovation, pad your savings, and even put money towards expenses or investments. Consolidating debts, which is very common with cash back mortgages, can especially save you money if you consolidate high interest debt such as a credit card or auto loan with the lower interest cash back you receive.
For example, you have an unpaid credit card balance at a 15% interest rate for $8000. This is costing you $100 per month in interest payments alone. You decide to take out $8000 in a cashback mortgage to pay this, at a 3.5% interest rate, which will cost $24 per month in interest payments. This would mean you would be saving $76 per month in interest by consolidating your debts with a cash back mortgage!
Since you are getting cash back when you purchase your home, it will also mean higher monthly interest and principal payments. In addition, it will sometimes mean a higher interest rate on your mortgage, as the lender looks to be compensated, and less flexibility in choosing your mortgage length, with terms only between 1 to 10 years. Overtime, this may mean you pay more in interest over your mortgage term, while you have less options for choosing a mortgage.
This mortgage offering is tailored specifically for people who own a business or are freelancers. An RBC self employed mortgage lets you finance up to 80% of the appraised value of your home when refinancing and 90% when purchasing. Additional mortgage insurance may be needed for Loan-to-values of higher than 65%.
To get a self-employed mortgage at RBC, you will need the following:
In addition, it's likely that the bank will want to see other supporting documents about your self-employment status, which may include:
All 6 big banks in Canada offer options for self employed people to get mortgages. The amount you will be eligible for and your minimum down payment will differ, however:
|Bank||Minimum Down Payment||Additional Requirements|
|RBC||20% with no mortgage insurance, 5% - 19.99% with mortgage insurance.||Notice of Assessment, proof of self-employment status.|
|TD Bank||20% with no mortgage insurance, 5% - 19.99% with mortgage insurance.||Last 2 Notice of Assessments, information on your outstanding debts and assets.|
|ScotiaBank||Minimum 10% downpayment.||Proof of income such as a business's financial statements and Notice of Assessments.|
|BMO||20% with no mortgage insurance, 5% - 19.99% with mortgage insurance.||T1 form for the last 2 years, financial statements for the last 3 years.|
|CIBC||20% with no mortgage insurance, 5% - 19.99% with mortgage insurance.||2 or 3 years of financial statements, a list of assets and liabilities, article of incorporation (if applicable).|
|National Bank||Minimum 10% downpayment.||Being self-employed for at least 2 years with proof of 2 years or more of good financial and credit management.|
With branches throughout 6 southeastern states in the USA such as Georgia, Florida and North Carolina, getting a mortgage in the USA is easy for Canadians even without a US credit history. RBC is able to leverage your credit history from Canada along with your assets in order to help you purchase a home in the US.
Usually if you are a Canadian looking to purchase in the US, you likely may not have any or very little credit history in the country, which can be a major roadblock in getting a mortgage. This makes it tough to find any financing, especially if you do not have a very large down payment and strong income. With RBC’s presence in Canada, you are able to leverage your Canadian credit history, which makes getting a mortgage in the US through them very doable, especially if you don't have much of a credit history in the US.
RBC offers Canadians the following benefits and terms when buying in the US:
The RBC Homeline Plan® is an all-in-one lending solution that combines a traditional mortgage with a HELOC (RBC Royal Credit Line®). One of its advantages is that you can lock-in a rate for your HELOC to protect yourself from interest rate fluctuations. You can also divide your mortgage into fixed-rate and variable-rate portions. For terms and eligibility, talk to your local RBC branch advisor.
Homeline can be a good option for people who have equity in their home and need money for:
With lower interest than many other forms of credit, RBC’s Homeline Plan® can help you get cash for any situation.
With much lower interest than many other forms of credit, it can be beneficial for homeowners with equity to consolidate debt with RBC’s Homeline Plan®:
|Product||Average Interest Rate|
|Homeline||5-Year Fixed: 2.49%|
|Traditional Line of Credit||~3.5%|
The biggest thing to remember when consolidating debt however is that your home is the collateral.
All big 6 banks in Canada offer mortgages with a line of credit. A list of these products include:
|RBC Homeline Plan®||TD Home Equity FlexLine||Scotia Total Equity Plan|
|CIBC Home Power Plan||BMO Homeowner ReadiLine||National Bank All-In-One|
RBC Homeline Plan®
RBC Homeline Plan®
RBC Homeline Plan®
RBC Royal Bank's Prime Rate is used as the basis for many of RBCs products, including variable rate mortgages, traditional lines of credit, and HELOCs. The Prime Rate is normally combined with a spread depending on the product and the riskiness of it, to make up the final interest rate.
The prime rate is the foundation that RBC uses to make loans to its customers. Higher risk loans such as credit cards, car loans, and personal loans may have an added amount of interest rate added to it because of this, while lower risk loans like a mortgage loan may be lower than the prime rate because of the collateral involved.
RBC posted rates are the official rates used when calculating your mortgage break penalty, which is the fee you pay if you want to break or refinance your mortgage early. Your mortgage payment, interest, and stress test will be based on a different rate, which is usually lower than the posted rate.
RBC calculates your mortgage break penalty by using either a method called an Interest Rate Differential, or by charging you 3 months worth of interest, whatever amount is higher. For the Interest Rate Differential method, RBC uses the contract rate on your mortgage minus any original discounts, then compares it to the posted rate with the most similar term as your mortgage has remaining. The difference between the contract rate on your mortgage including the discounts and the posted rate is the amount of interest you will owe for breaking your mortgage, across the remaining term.
For example, you have a $200,000 mortgage that has 3 years left on its term, and you are planning to break your mortgage contract. The rate that you got when you took out this mortgage was 4% including the discount you were given. The current 3 year RBC posted rate is 3.45%. This means there is a 0.55% difference between the posted rate and your rate. Your mortgage break penalty is therefore 0.55% multiplied by both your mortgage amount left, which is $200,000, and the length left on your term, which is 3 years. This means that you will pay $3300 in a mortgage break fee.
|Term Length||RBC Posted Rate|
Similar to other large Canadian banks, you will not be able to get an RBC mortgage through an independent mortgage broker. Instead, you will need to get a mortgage product directly from RBC. This still can be convenient however, by shopping around online and in person for mortgage rates before committing to getting a mortgage with RBC. When it comes time to get a mortgage with RBC, having over 1200 branches Canada-wide, online options, and over the phone options can make the process much simpler. If you haven't banked with or got a mortgage with RBC in the past, contacting your local branch can help you to get an appointment with one of RBCs mortgage specialists.
When you are ready to get an RBC mortgage, you should speak with an RBC branch advisor or mortgage specialist. You will also likely need the following documents:
During your meeting, you will be able to establish how large of a mortgage you can afford. For a quick estimate however, check WOWA's Mortgage Affordability Calculator.
|Bank or Lender||Variable Rate Mortgage||Fixed Rate Mortgage|
|3 Months’ Interest||Greater of 3 Months’ Interest or the IRD amount|
This is the difference in interest payable between your current interest rate and RBC's posted rate for a term similar to the time remaining, less any rate reduction (contract rate discount from posted rate) that you received.
Are you looking to pay off your mortgage early? Or refinance the terms of your mortgage at a lower interest rate? Maybe you sold your home and purchasing a new home, in which a mortgage transfer will apply. Whatever the case, you most likely will have to pay a mortgage break penalty set by your lender. Whatever the situation, our calculator will help you determine the cost to break your mortgage so you can be confident about your mortgage decisions.
A mortgage pre-approval is when a lender will commit to providing you with a mortgage loan after checking your credit and financial information. The process of getting pre-approved for an RBC mortgage can be done both in person when you sit down and speak with a mortgage specialist, going online and filling out RBC’s pre-approval application, or over the phone. After providing RBC with your information, which includes your employment status, current income, assets and liabilities, and your down payment, you will hear back from the bank with information on how much they are willing to lend you and at what terms. Once you hear back, you will need to confirm the information you provided with proof, then you will be ready to start putting in offers with confidence!
Although you can do this process independently, meeting with an RBC mortgage specialist and filling out the application in person is usually the best choice. This will allow you to discuss your mortgage, including your mortgage amount, down payment, your purchase price or budget, and your individual needs with a mortgage professional.
Since getting pre-approved doesn't cost anything and is a relatively quick process, there is little downside to doing it if you are planning on purchasing a home soon. Some of the benefits of getting pre-approved include:
Generally it is a good idea to get pre-approved before house hunting. This is so that you will be able to have all the information to feel confident searching for a home, and to be able to make an offer without a financing condition.
Getting pre-qualified is the process of submitting your financial and personal information to a lender, who will then provide you with an assessment of how much they'd be willing to lend to you. The lender is not guaranteeing you the loan, only giving you a soft estimate of how much you might be able to spend based on the information provided. This differs from a pre-approval, considering that a pre-approval is a commitment to loan you money, while a pre-qualification is not. Getting pre-qualified is also much faster, with your lender doing only a soft credit check which will not affect your credit score and can give you information in minutes.
An RBC mortgage specialist acts as a mortgage broker for all of RBCs mortgage products. Mortgage specialists operate on commissions and are more independent because of this, however they only will sell RBC mortgages. A major benefit of mortgage specialists being independent bank representatives is that it leaves them more room to be flexible in the rate and terms you may get in a mortgage. This is because they may be willing to trade some of their commission to get you a lower rate and to close the deal.
If you are looking for an RBC mortgage representative to talk to over the phone, the number to call is 1-800-769-2511. If you are looking for a branch to visit, RBC’s branch locator can help you find a branch or ATM in any city or based on where you currently are. From here, you are able to get directions, book an appointment, and find out more information about the branch, including the hours of operation, additional services offered, and the languages that they have customer service in.
To get an accurate representation of what banking with and getting a mortgage with RBC is like, we have analyzed hundreds of reviews from multiple websites. With RBC operating as a financial institution across multiple business lines, these reviews will reflect the overall quality of service the bank provides.
Average Review Result: 3.5/5.0 across 557 reviews
WalletHub: 3.3/5.0 from 271 reviews
Consumer Affairs: 3.6/5.0 from 240 reviews
InsurEYE: 4.0/5.0 from 46 reviews
|✔ Pros||✖ Cons|
Currently you aren't able to defer your mortgage as many mortgage relief plans at RBC have come to an end. If you are in a position where you may need assistance with your finances, talking with your RBC representative can be a good way to analyze your situation and see what is available to help you.