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.
Stock Information: Listed on the Toronto Stock Exchange: TSE: RY Listed on the New York Stock Exchange: NYSE: RYRBC'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.
Best 5 -Year Fixed Mortgage Rates in Canada Select Mortgage Term: See More RatesRBC’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.
Mortgage Amount : Amount : Amortization :| Term | RBC Rate | Lowest Rates of Big 6 Banks |
|---|
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.
Mortgage Amount : Amount : Amortization :| Term | RBC Rate | Lowest Rates of Big 6 Banks |
|---|
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.
Big 6 Banks Comparable Features
| 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 | 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. |
| National Bank | 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:
Note: Limits are for closed mortgages and are current as of September 2022. Your actual limit may vary depending on your mortgage agreement.
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.
Big 6 Banks Comparable Features
| 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. Mortgage protection insurance is different from home insurance. For home and property insurance, such as to cover against fire, flooding, and theft, you can get RBC home insurance
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 | $0.10 | $0.17 | (SC): $50 (JC): $85 |
| 31-36 | $0.14 | $0.24 | (SC): $70 (JC): $120 |
| 37-41 | $0.21 | $0.36 | (SC): $105 (JC): $180 |
| 42-45 | $0.30 | $0.51 | (SC): $150 (JC): $255 |
| 46-50 | $0.43 | $0.73 | (SC): $215 (JC): $365 |
| 51-55 | $0.57 | $0.97 | (SC): $285 (JC): $485 |
| 56-60 | $0.76 | $1.29 | (SC): $380 (JC): $645 |
| 61-65 | $1.02 | $1.73 | (SC): $510 (JC): $865 |
| 66-69 | $1.63 | $2.77 | (SC): $815 (JC): $1,385 |
Note: Premium rates are current as of September 2022
Big 6 Bank's Mortgage Protection Insurance Offerings
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 | $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.
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.
