While this does give breathing room during difficult times, it does mean that you will have to pay more in the long run. Insurance premiums and property tax will still be due as usual. This deferral is only for the mortgage principal and interest amounts. This mortgage payment deferral option gives you flexibility in times when money might be tight and gives you leeway if you are struggling to make a one-off payment. RBC allows you to skip a monthly payment once every 12 months, which can be equivalent to four consecutive weekly payments or two consecutive bi-weekly payments.

Making just a $100 Double-Up prepayment every month can translate into thousands of dollars in interest saved over the life of a mortgage, and it also means that your mortgage will be repaid faster. This mortgage prepayment is directly applied towards your mortgage principal and can range between $100 up to the original regular payment amount. This gives you the option to make a mortgage prepayment as a one-time payment or for every payment.

Your prepayment limits may be higher or lower depending on the specific terms of your mortgage agreement. You can also make a mortgage prepayment when renewing your mortgage. If you have a closed mortgage, you can make a mortgage prepayment of 10% of the original mortgage principal once every 12 months. If you have an open mortgage, you can make an unlimited number of prepayments at any time, provided that they are at least $500 each. Mortgage prepayments are applied directly towards your mortgage principal, which means that your mortgage will be repaid faster and that you will be paying less interest over the life of your mortgage. You can also select the date that your mortgage payment is due, creating choice and convenience. Accelerated weekly and accelerated bi-weekly payment options allow for the equivalent of one additional monthly payment every year, effectively reducing the amortization of the mortgage and saving you potentially thousands of dollars in interest. RBC allows you to change your mortgage payment schedule at any time and provides options from weekly, bi-weekly, semi-monthly, and monthly payments. RBC Mortgage Payment Options Payment Schedule Those who have divorced will qualify as a first-time homebuyer, even if they have purchased a home previously with their spouse. First-Time Home Buyersįirst-time homebuyers are those who have never purchased a home before, and they must also have not occupied a home owned by themselves or their spouse or common-law partner in the last four years. A maximum LTV of 90% is available for the Self Employed Mortgage, while up to 80% when refinancing your mortgage. If the loan-to-value ratio is above 65% and you need to use your business income for your application, RBC requires default insurance which will be subject to mortgage insurance premiums. If you do choose to opt for mortgage insurance, then you can borrow up to an LTV of 95% depending on the home price. If you have sufficient personal income, then no mortgage default insurance is required for loan-to-value ratios below 65%. RBC does require a good credit history and they also require a recent Notice of Assessment. RBC provides a mortgage product that targets specifically those that are self-employed by allowing applicants to use their income from their business when being considered for a mortgage. Mortgage lenders can be more hesitant towards those that are self-employed as their incomes can be more uncertain and unstable. This feature provides security and flexibility, as it enables you to convert to a longer closed term should your variable rate mortgage no longer meet your needs. A convertible mortgage allows you to convert to another term at any time. As a result, this can be a great financial tool for those expecting rates to fall in the upcoming year. If their prime rate goes down, more of your payment will go towards paying off your principal if their prime rate goes up, more of your payment will go towards interest costs. RBC Royal Bank Variable Rate Mortgages provide you with fixed payments over the term however, the interest rate will fluctuate with any changes in the prime interest rate. If interest rates go up during that time, you will be guaranteed the lower rate. If you are arranging a new mortgage for a future or current home, your fixed interest rate can be guaranteed up to 120 days before the closing date of your home. This can create peace of mind for homeowners, which makes it a fundamentally appealing program for home buyers. RBC Royal Bank Fixed Rate Mortgages reduce the risk of future interest rate fluctuations by “locking in” a specific interest rate for the term. See More Rates Mortgage Programs RBC Fixed-Rate Mortgages

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