Mortgages

• At RBC you can obtain a mortgage primarily for the purpose of purchasing an owner occupied residential property, including: townhouses and condominiums.
• Financing is available up to 95% (as Mortgage Indemnity Insurance is available for amounts in excess of 80%); therefore a minimum downpayment of 5% is required.
• Amortized monthly payments of principal and interest can be granted for up to 30 years (maximum term and age of client not to exceed government age of retirement). Options include weekly, bi-weekly and monthly payments. 

• At RBC you can obtain a mortgage to purchase residential lots in government approved subdivisions for the purpose of eventually constructing an owner-occupied home.
• Financing is available for up to 90%, therefore a minimum downpayment of 10% is required.
• Amortized monthly payments of principal and interest can be granted for up to 15 years (maximum term and age of client not to exceed government age of retirement). Options include weekly, bi-weekly and monthly payments.

• RBC offers financing to build or undertake major renovations for owner occupied residential property.
• This type of mortgage is set up as an interest only facility during the stages of construction.
• During the period of construction (maximum of 1 yr), the client can draw down balances in pre-determined phases as needed up to the approved limit. Upon completion, the final amount will be converted to a residential property mortgage with a monthly blended installment of principal and interest.
• Amortized monthly payments of principal and interest can be granted for up to 30 years (maximum term and age of client not to exceed government age of retirement). Options include weekly, bi-weekly and monthly payments. 

• At RBC you can utilize the equity that has been built up in your property for your goals including: Home Improvements, Debt Consolidation, Investments, Educational or Medical expenses with the supporting collateral being a mortgage over the property.
• RBC financing is available for up to 80% of the value of the property.
• Amortized monthly payments of principal and interest can be granted for up to 30 years (maximum term and age of client not to exceed government age of retirement). Options include weekly, bi-weekly and monthly payments.

EXAMPLE:
Assume you have a property with an original valuation of $500,000 in 2007.
Existing mortgage facility is $400,000 @ 10% for 20 years, original down payment was $100,000
Mortgage balance is $360,000 in 2012

Scenario 1:
What is the available equity in 2012 that can be utilized assuming the original value of the property remains the same?

Scenario 2:
If in 2012 the property has increased in value to $560,000, what is the new available equity?

Answer:

Purchase of residential property and residential land:

Collateral:

• Assignment of Home Owner's Insurance cover over the property
• Registered first mortgage of a continuing nature over property being financed

Documents:

• Agreement of Sale
• Deed for property
• Current Valuation Report

Construction/Renovation:

Collateral:

• Assignment of Home Owner's Insurance cover over the property
• Registered first mortgage of a continuing nature over property under construction

• Copy of Builder's/Contractor's estimate
• Approved building plans and copy of site plan 
• Quantity surveryor's report
• Land and building tax receipt

For further details please refer to the Residential Mortgage Checklist

For what purpose can I apply for mortgage financing?

You can apply for mortgage financing for any of the following purposes
- Purchase of your new home
- Purchase of residential land
- Construction of your home
- Home renovation
- Consolidation of debts
- Investments
- Education
- Medical expenses

What are the basic requirements for obtaining mortgage financing?

- Minimum age: 18 years
- Gainfully employed (salaried / self employed)
- Good credit history
- Total loan / rent payments, inclusive of the proposed mortgage, should not to exceed 40% of your gross income
-The loan must be repaid by government age of retirement, however special conditions apply

What are some of the basic documents required?

- 2 valid forms of identification
- Current job letter & most recent pay slips / audited financial statements, for the last three (3) years supported by income tax assessment notices (if self – employed)

How long does the entire process take?

Just call us or come in to discuss your request, and receive conditional pre-qualification. Upon submission of all the required documents you will receive final approval and issuance of the Letter of Offer. We will request the necessary searches to be done through our Attorneys after which the deed will be signed and funds disbursed.

It’s that simple! You own your home!

What are the benefits of mortgage financing?

- Facilitates acquisition of a home where you would otherwise have to utilize savings

- For homeowners, mortgage interest, and property tax may be deducted on annual income tax returns

- Homes typically increase in value over time, building valuable equity for the homeowner which will result in significant benefits including:
1. The equity will typically provide homeowners with a net profit on the sale of their homes
2. Homeowners can increase borrowing power by utilizing equity to finance key needs such as education, home improvement projects or for major purchases, emergencies or investment property

Can I apply for a mortgage with another person?

Yes. You may enter a mortgage as an individual or with one or more persons. However, in cases where the mortgage over a couple’s matrimonial home is to be taken, both parties must be joint on the loan.

Can I make lump sum payments towards my mortgage loan?

Yes lump sum payments can be made towards RBC Mortgage loans.

How can I pay less interest to the bank over the period of the mortgage?

Making lump sum payments to the mortgage, and specifying that the funds are to be applied to the principal, will reduce the term of the loan. Early re-payment will reduce the amount of interest paid to the bank.

Example:

- Double-Up your mortgage payment on any or every payment date
- Increase your mortgage payment up to 10% once every 12 months
- Make bi-weekly accelerated payments instead of monthly payments. It's like making one extra mortgage payment per year, which can save you substantial interest over the lifetime of your mortgage.

Are there penalties for early liquidation of my mortgage loan?

If you decide to liquidate your Residential Mortgage without giving three (3) months prior notice, you will be charged a penalty fee of three (3) months interest.
However, once you provide the three (3) months notification you will not be charged a penalty fee for early liquidation.

What types of insurance are available when it comes to mortgage financing?

- Mortgage Indemnity Insurance - financing is available for up to 95% of the appraisal or purchase price, whichever is lower. If the loan amount exceeds 80% of the property value/purchase price mortgage indemnity insurance is required. This is a one time purchase to cover the difference between the 80% and 95%.

- Homeowners comprehensive policy is mandatory to cover your investment in the property in event of a loss.

- Life Insurance is highly recommended to protect your family's interest in their home.

- Contractors All Risk Policy (Construction) - to cover risks during construction.

Even if you have not yet made that final decision on your dream home, come in or call one of our friendly and professional Account Managers, and we can advise you on the amount that you will qualify for, or the steps you need to make the move towards owning your home.

Where do I go to apply for a mortgage?

Call our Account Managers at 467-4000 or 431-2500 and we will meet you at your convenience.