Compare RBC Royal Bank Mortgage Rates in Canada
Whether you’re considering a fixed or variable mortgage, CompareMortgages.ca provides up-to-date RBC rates alongside offerings from other major Canadian lenders.
Our platform ensures you have access to the most competitive mortgage options that suit your financial goals and budget. Why limit yourself to a single lender when we can help you compare multiple options quickly and easily?
Key Highlights
- RBC offers a range of mortgage options, including Investment and Self-Employed Mortgages.
- Skip-A-Payment allows you to skip the equivalent of a monthly mortgage payment once every 12 months.
- RBC allows you to prepay up to 10% of your original principal amount annually.
Compare RBC Mortgage Rates
Below is a table displaying the best rates from the five largest banks in the country. You can easily compare the rates offered by major Canadian lenders and banks, including TD, RBC, CIBC and Scotiabank. We do the research to guarantee you the lowest possible rates upfront every time.
Compare Big Bank Rates
Securing Canada’s most favourable mortgage or loan terms starts with comparing rates from big banks. Interest rates and promotional offers can vary significantly, potentially leading to substantial savings over the life of your loan.
Take Action Today:
- Explore Multiple Options: Don’t settle for the first offer. Research rates from various top lenders and banks across Canada to identify the most competitive options.
- Consider Your Financial Needs: Assess your budget, financial goals, and risk tolerance to determine the loan term and type that best suits you.
- Make an Informed Decision: With comprehensive rate comparisons, make a confident choice that matches your financial needs.
Comparing rates can translate to significant savings and a more favourable financial future.
RBC Royal Bank overview & stock information
Incorporated in 1869, RBC began as the Merchants’ Bank of Halifax, founded by maritime merchants. In 1901, the name was changed to The Royal Bank of Canada to symbolize the bank’s expansion into the rest of the nation. Today, RBC is Canada’s largest bank in market capitalization and total assets among the “Big 6″.
Stock information
What to Know About RBC Mortgage Posted Rates
RBC’s posted rates are used to calculate prepayment penalties. When obtaining a mortgage, borrowers are typically offered a discount from the posted rate.
RBC’s advertised rates may differ from those offered through mortgage specialists or in-branch. Special offers, promotional rates, or alternative channel discounts often offer lower pricing than advertised. The actual rate you will be offered depends on personal factors like your mortgage amount, loan-to-value (LTV) ratio, property type, risk profile, and credit profile.
RBC also provides a limited-time cashback offer if you meet the eligibility criteria. However, this incentive may come with higher rates or require repayment (clawback) of the cashback if you break your mortgage before the end of the term.
RBC Royal Bank Mortgage Products
Fixed-rate mortgages at RBC offer security and peace of mind by locking in an interest rate, allowing you to know exactly how much your mortgage payment will be over the term. RBC offers closed fixed mortgages with 6-month convertible,1, 2, 3, 4, 5, 7, 10 and 25-year terms and 6-month and 1-year terms on open fixed mortgages. Each mortgage payment will remain the same over the mortgage term and comprises a principal and interest component. You must renegotiate a new interest rate at the end of each term.
Variable-rate mortgages (VRM) at RBC offer interest rates based on the RBC prime rate, which may increase or decrease over the mortgage term based on changes to the BoC policy rate. You only have the option of a 5-year closed or open variable term at RBC.
Variable mortgages at RBC have payments that remain the same over your mortgage term, regardless of changes to interest rates. However, the amount applied to the principal and interest will fluctuate based on changes to RBC’s prime lending rate.
When the prime rate increases, more of the mortgage payment goes toward the interest and less toward the principal. When rates increase significantly, RBC does not permit negative amortization on its variable mortgage. When the prime rate decreases, more of the mortgage payment goes toward the principal and less toward the interest, helping you pay off your mortgage faster.
Besides the typical core mortgage products offered by most banks, RBC also provides a variety of other mortgage products, including:
RBC Homeline Plan
This collateral charge mortgage allows you to combine your mortgage with a line of credit. As you pay down your mortgage, your available credit grows and can be reused as you pay down your balance. This mortgage plan requires 20% equity or a 20% down payment and allows you to split your mortgage between variable and fixed rates, or pair it with a secured line of credit.
RBC Self Employed Mortgage
This mortgage solution is for business owners and self-employed individuals who find it difficult to finance a home through traditional mortgage solutions. If your most recent Notice of Assessment (NOA) shows sufficient income to qualify, you can finance up to 80% of the purchase price or property value, or up to 95% with default insurance under a standard charge mortgage.
For those who have opted to minimize personal income, whether for tax optimization or to grow their business, the Self-Employed Mortgage Program allows borrowers with strong credit histories to finance up to 90% of the property’s value.
Second/Vacation Home Mortgage
This mortgage allows you to finance up to 95% of the value of a vacation or second home. The RBC Vacation Home Mortgage allows you to choose specific mortgage features that work best for you to finance a second home used year-round or a cottage.
Investment Property Mortgage
This mortgage allows you to finance up to 80% of the appraised value of your rental property. This solution is ideal for those acquiring a rental portfolio of one or more properties to build income and equity, converting their current home to a rental property, or purchasing a property for their child to live in.
To qualify, you must have a good credit history, demonstrate sufficient rental income through existing tenancy or opinion of market rent and have enough non-rental income to meet the mortgage obligations.
Key Features of RBC Mortgages
- Skip-A-Payment Mortgage Option: This allows you to skip the equivalent of one monthly mortgage payment once every 12 months. If the mortgage is not in arrears, and the payment you want to skip plus your current mortgage balance do not exceed the original mortgage amount, you can skip up to 4 weekly, 2 bi-weekly, or 1 monthly payment.
What Determines RBC’s Mortgage Rates?
Lenders like RBC set their mortgage rates based on the Bank of Canada (BoC) policy rate or bond yields. The state of the economy in Canada and globally, inflation, and employment can all impact the direction of bond yields and the BoC’s monetary policy decisions, impacting mortgage rates.
Variable mortgage rates are directly tied to the Bank of Canada policy rate. When the BoC changes the policy rate up to 8 times a year, lenders adjust their prime rates accordingly. Most lenders set the prime rate at 2.20% higher than the policy rate.
Fixed mortgage rates are directly tied to the movement of bond yields with a corresponding maturity. For example, 5-year fixed rates follow the direction of 5-year bond yields. Bond yields are indirectly influenced by what the market thinks the BoC will adjust the policy rate to in the future. Depending on the lender, fixed rates are typically priced 1% to 2% higher than the corresponding bond yield.
Other factors, such as your credit score, loan-to-value (LTV) ratio, down payment, debt service ratios and more, can impact the rates or discounts RBC offers you.
RBC Mortgage Payment Increases
In the mortgage industry, a prepayment is when a borrower pays off a portion or the entire mortgage early, either with a lump sum payment or by raising their regular monthly payments. Your annual mortgage prepayment limit will vary from one major bank to another. If you want the freedom to pay off your mortgage early, you will want to shop around for a mortgage with favourable prepayment terms.
Whether you have a RBC variable-rate mortgage or a RBC fixed-rate mortgage, flexible payment options allow you to pay off your mortgage faster. If you currently make monthly payments, you can switch to an accelerated weekly or bi-weekly schedule to help you pay off your mortgage faster.
Depending on your mortgage, you can increase your regular payment amount once each calendar year by up to 10% of your current mortgage. For example, if you currently pay $800 biweekly toward your mortgage, you can increase your payment by up to $80 once per year. You will continue to pay the increased mortgage payment of $880 for the remainder of the term unless you opt to increase again after a year.
RBC Annual Mortgage Prepayment
If you take advantage of yearly prepayment privileges at RBC, you can prepay up to 10% of the original principal amount annually without penalty. You can also Double Up your regular mortgage payments as long as all prepayments don’t exceed 10% of your original principal mortgage amount every 12 months.
If you have an open mortgage, you can make as many lump-sum principal payments of $500 or more as often as you like each year without a prepayment penalty.
Since the entire lump sum will be applied to the principal balance of the mortgage, you will pay significantly less interest throughout the mortgage’s lifetime and be able to pay it off much more quickly.
Important: You will incur a penalty if you choose to prepay your RBC mortgage by more than 10% of the mortgage principal per year on a closed mortgage.
| Canadian Bank Closed Mortgage | Prepayment Amounts |
|---|---|
| RBC | 10% |
| National Bank | 10% |
| CIBC | 10% |
| TD Bank | 15% |
| Scotiabank | 15% |
| BMO | 20% |
Frequently Asked Questions
Can I negotiate my mortgage rate with RBC?
You should always negotiate your mortgage rate, as the first offer is rarely their best. However, RBC may offer rate discounts that will vary based on your credit profile, LTV, down payment, and debt service ratios.
What is the difference between fixed and variable mortgage rates?
Fixed rates provide predictable payments that remain constant throughout the mortgage term. Variable rates fluctuate with the RBC prime rate, but your payment won’t. If rates decrease, less of your payments go toward interest and more toward principal, helping you pay off your mortgage faster.
If rates rise, more of your payments will go toward interest and less to principal, which could require you to increase your payment amount, prepay, or convert your mortgage to a fixed term should rates increase to the point your regular payment no longer covers the full interest amount (negative amortization). RBC does not allow negative amortization on its variable mortgages.
Does RBC offer mortgage pre-approvals?
Yes, RBC offers mortgage pre-approvals. You can lock in your pre-approved rate up to 120 days from the application date to shop for the perfect home.
Final Thoughts
RBC offers a variety of mortgages to suit many borrowers’ needs. While RBC may be a great option, it is always advisable to shop around for the best rate and terms whenever borrowers are in the market for a new mortgage, renewing, or refinancing.
Ready to find the best mortgage rate for your needs? Use Compare Mortgages to explore RBC offerings alongside those of other top Canadian lenders.