Royal Bank of Canada (RBC) Mortgages - A Detailed Guide - Best Mortgage Rates

Getting a mortgage can be a time-consuming process that can fluster some individuals. Educating yourself on the subject will benefit you in the long-run.

Mortgage Rates RBC

Royal Bank of Canada mortgage brokers are available and can provide guidance on the pre-approval of loans, the acquisition of real estate, the transfer of your mortgage to RBC and the referral of mortgage rates. RBC will describe the types of mortgages available as well as their terms and conditions so you can identify the right mortgage for all of your needs.

RBC will contact your current financial institution if you change mortgages and will make all arrangements for you.

  • RBC offers a number of specialty mortgage forms apart from the key mortgage products (fixed / variable rate, open/closed):
  • The Homeline Plan by RBC is a way to manage your mortgage and line of credit in one single plan while minimizing debt and saving on interest charges.
  • RBC Investment Property Mortgage will finance up to 80% of your rental property’s assessed value.
  • RBC Vacation Home Mortgage gives you the opportunity to finance up to 95% of the total worth of your vacation home.
  • RBC Cash Back Mortgage is intended for first-time homebuyers who need cash to help with their cost of moving. The amount of cashback is based on your mortgage’s size and name.

RBC allows you to postpone one payment per year once you are up and running, provided the current mortgage balance (combined with the number of payments you want to miss) does not surpass the original mortgage amount and you are not in debt with your current mortgage. There is no additional fee for this option and you have the freedom to repay the missed payment during the loan period at any time.

If you are a first-time buyer or buying your second home, using will assist you in comparing mortgage rates.

Just How Big Of A Mortgage Can I Afford?

It’s a good idea to figure out how much you can afford to Decide about your affordable monthly payment before you start looking for a dream home, which is why we recommend using the affordability calculator at

After knowing your monthly payment, you’ll know how much you’ll need to pay down.A down payment is a major step and part of the process of purchasing a home. In fact, the size of your down payment will influence how much you qualify for a mortgage. The minimum down payment in Canada is 5 percent on the first home price of $500,000, and 10 percent on any part that reaches $500,000, up to $1 million. A home valued over $1 million requires a minimum of at least 20 percent down.

One risk that borrowers need to be mindful of is that they have to purchase mortgage default insurance when they put down less than 20 percent of their home’s value. If you are able to put down more than 20 percent of your home purchase, you can qualify from your lender for a conventional mortgage product. If you don’t, then you can expect to pay an additional premium of 0.50–2.75% of the mortgage value, depending on your loan-to-value ratio (LTV) and depreciation duration.

The additional costs that come after the bid has been accepted are part of the costs that are usually not thought of when you start looking for a home or are in the budgeting process. It can really add up from the closing costs and property taxes to the cost of living!

Should I Involve A Bank Or Mortgage Broker In The Process?

With all of the various mortgage questions that come to mind, prospective home buyers may turn to their bank or mortgage broker, but many people aren’t sure what’s best with their needs.

When it comes to deals, by going to the bank, home buyers go straight to a lender that is taking care of most of the legwork. By deciding to sign with a mortgage from a bank, all of your services can be consolidated with a provider you have worked with and trusted, plus you may be eligible for discounts.

On the other hand, a broker provides home buyers with the advantage of having access to a number of rates provided by various lenders, and they do the legwork and negotiate to receive the best terms and rates currently offered on the market. In the vast majority of the cases, mortgage brokers do not offer these competitive rates so this is one of the reasons why we provide comprehensive mortgage rate market comparisons throughout Canada. We compare different brokers, credit unions, banks, and lenders.

Should I Decide On A Fixed Or Variable Rate Mortgage?

When you are shopping for the home of your dreams, it is important to decide if you want a fixed mortgage or variable rates. With a fixed mortgage rate, you have the option to lock in at a predetermined rate for a set period of time. The most common lock-in rate is 5 years, but they can last all the way up to 25 years.

Benefits of a fixed mortgage rate:

  • A certain sense of peace of mind knowing what your principal and interest will remain at for the course of the term.
  • Budgeting is a lot easier with fixed rates.
  • Less risk is involved in comparison to variable rates.

Downsides of a fixed mortgage rate:

  • For securing a fixed rate, you might pay more to secure it.
  • The payment for breaking the contract might end up costing you more in the long-term.

A variable mortgage rate is all based on the lender’s prime rate. This rate is all dependent on the current economic conditions and is just a benchmark rate that is utilized by many banks when they are involved in pricing out loans that are short term. From month to month, prime can go up or down, which results in the variable mortgage rate also going up or down.

Benefits of a variable mortgage rate:

  • As long as the prime doesn’t increase the rate above fixed mortgage rates, then monthly payments should be lower.
  • For breaking a contract, you will be paying three months of interest.

Downsides of a variable mortgage rate:

  • Lowered financial security if prime increases which can result in higher monthly interest.
  • Budgeting tends to be more difficult

Still can’t decide what rate to choose? Click Here to see the best fixed and variable Mortgage Rates from RBC.