Residential Mortgage Group at MCAP offers RMG Mortgages through independent mortgage brokers across the country. This means that RMG has outsourced its mortgage sale process to independent mortgage brokers similar to other mortgage lenders like RFA mortgage or Lendwise mortgage.
As a division of the monoline lender MCAP Financial, RMG offers five main products: residential mortgages, cash-back mortgages, bridge financing, mortgage protection insurance, and a special MCAP Safeguard Mortgage unique to RMG.
RMG mortgages come in terms of 1 year up to 5 years. Because the further in the future, the more uncertain the future becomes, commonly, any increase to your mortgage term would result in an increased mortgage rate. In late 2022 and early 2023, we are in a financial situation known as a yield curve inversion. So at this uncommon time, you can find lower rates for longer terms.
You can choose between a fixed or variable mortgage rate, and payment frequencies include the following options to choose from:
Each year, you can prepay up to 20% of your RMG mortgage's original principal without mortgage penalties. RMG mortgages can also be insured by CMHC insurance or private insurers Canada Guaranty or Sagen Canada.
Like most other Canadian mortgage lenders, RMG offers both fixed-rate mortgages and variable-rate mortgages. It is common for variable-rate mortgages in Canada to have fixed installments. For such mortgages, any increase in the prime rate would result in a smaller part of each installment going toward principal payments. In contrast, any decrease in the prime rate would result in a larger portion of your payment going toward principal repayment.
But RMG variable rate mortgages differ in this regard. Each time the prime rate changes, your installment payment will change for the second payment after the change in the prime rates. Such a mortgage is referred to as an adjustable-rate mortgage by many in the mortgage industry.
Another feature of RMG variable mortgages is that they are convertible mortgages. At any time during your mortgage term, you can convert your RMG variable rate mortgage to an RMG fixed rate mortgage. You can avoid paying any prepayment penalty if your new mortgage has a term equal to or greater than five years.
Neither RMG nor MCAP advertise their rates on their website. To know their rate, one has to talk to a mortgage broker offering RMG mortgages. To find a mortgage broker who is offering an RMG mortgage you can check the find a mortgage broker page on their website.
When a mortgage is initiated, RMG incurs some costs, including payment to the mortgage broker and administration costs. RMG, like other lenders, would incur such costs because of the interest it is expected to earn over the mortgage term. If, after closing, the borrower turns around and repays the mortgage, the lender would be losing money.
Thus RMG would limit the prepayment privilege that it offers its mortgage borrowers to 20% of their principal over the course of each year. If you decide to prepay your mortgage beyond this prepayment privilege, you will face prepayment penalties.
|RMG Mortgage Break Penalty for closed mortgages|
|Variable rate mortgage||Fixed rate|
|Three months of interest||Greater of the three months of interest and interest rate differential|
This table does not apply to RMG’s Low Rate Basic Mortgage. This is a variable rate mortgage which has an exceptionally high prepayment penalty equal to 3% of the remaining balance of the mortgage. In exchange RMG’s Low Rate Basic Mortgage offers an attractive rate.
As a result, if you decide to pay back your mortgage, for fixed mortgages, often you have to pay three months of interest if the current rate is higher than or close to your mortgage rates. But suppose current rates are considerably lower than your interest rate, and you want to repay your mortgage. In that case, you have to pay the interest rate differential (IRD), which can become prohibitively expensive.
In short, IRD is the amount of money the lender would lose by getting back the principal you owe and lending it at current mortgage rates for the remainder of your term.
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 bridge loan is a type of short-term financing that is typically used to finance the purchase of a new home before the borrower’s current home is sold. Bridge loans are usually repaid within a few months when the borrower’s current home is sold, and the proceeds from the sale are used to pay off the loan.
RMG's bridge financing program allows for a maximum term of 45 days or up to 120 days if you collateralize the bridge loan as a second mortgage. All RMG bridge loans above $150,000 must be collateralized as a second mortgage.
With RMG’s bridge loans, you must borrow at least $5,000, while the maximum that can be borrowed is either the greater of:
For example, if your home’s sale price is $500,000 and you have an existing mortgage of $300,000, then the maximum that you can borrow with an RMG bridge loan is:
$500,000 - $300,000 - (0.07 x $500,000) = $165,000
The maximum amount in this example that can be borrowed is $165,000, which must be a second mortgage. This allows a maximum term of 120 days, after which it must be paid back.
A cash-back mortgage is a home loan that allows borrowers to receive a lump sum of cash at closing. This cash can be used for any purpose, such as making home improvements, paying off debt, or funding a major purchase.
RMG's cash-back mortgage lets you receive up to 3% of your mortgage amount as cash back. However, you can't use the cash back as your down payment, and only insurer-approved new home purchases can qualify.
For example, if your mortgage is $500,000, then the maximum you can receive with an RMG cash-back mortgage is:
$500,000 x 0.03 = $15,000
You can receive $15,000 in cash that can be used for any purpose besides the down payment on the home.
MCAP's Safeguard Mortgage is only offered to RMG borrowers. It's a second mortgage that can be added to an existing RMG mortgage at any time and lets you access your home equity without penalties that you would get from refinancing your mortgage early.
Many mortgage lenders in Canada offer mortgage life insurance, sometimes called mortgage protection insurance, and RMG also provides it for their mortgages. Called RMG Secure Start, it's underwritten by Sun Life and offers the following coverages:
RMG requires you to work at least 20 hours per week to qualify for their mortgage disability insurance. For their mortgage life insurance, the maximum age is 64 years of age.
Monthly Premium per $1,000 Coverage
|Age||Single Borrower||Joint Borrower|
|18 - 30||$0.10||$0.15|
|31 - 35||$0.14||$0.20|
|36 - 40||$0.21||$0.32|
|41 - 45||$0.31||$0.47|
|46 - 50||$0.43||$0.62|
|51 - 55||$0.59||$0.85|
|56 - 60||$0.80||$1.23|
|61 - 65||$1.13||$1.70|
Monthly Premium per $1,000 Coverage
|Age||Single Borrower||Joint Borrower|
|18 - 30||$1.35||$2.59|
|31 - 35||$1.76||$3.42|
|36 - 40||$2.17||$4.14|
|41 - 45||$2.74||$5.33|
|46 - 50||$3.45||$6.74|
|51 - 55||$4.35||$8.43|
|56 - 60||$5.40||$10.53|
|61 - 65||$6.45||$12.34|
|66 - 69||$7.50||$14.46|
RMG mortgages office in Vancouver has 87 google reviews in which it has an average score of 2.6 out of 5. Their office in Calgary has no google review. Finally, their Toronto office has received a score of 4 out of 5 from 2 reviews. RMG might have many happy customers, but those customers who have made a review on google do not seem very excited about the service they got.