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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
What is the available equity in 2012 that can be utilized assuming the original value of the property remains the same?
|LTV||Maximum Equity Available|
|Maintains current market value of $500,000.|
|With standard 80%||[80% * $500,000] - $360,000 = $40,000|
If in 2012 the property has increased in value to $560,000, what is the new available equity?
|LTV||Maximum equity available|
|Appreciates to $560,000|
|With standard 80%||[80% * $560,000] - $360,000 = $88,000|
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For further details please refer to the Residential Mortgage Checklist
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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
- Medical expenses
- 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
- 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)
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!
- 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
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.
Yes lump sum payments can be made towards RBC Mortgage loans.
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.
|Mortgage financing amt.||$900,000||$900,000|
|Tenor||25 years||25 years|
|Annual lump sum
|Total number of
|Total interest paid||$881,107.32||$646,631.94|
|Total interest savings||$0.00||$234,475.38|
- 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.
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.
- 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.
Call our Account Managers at 467-4000 or 431-2500 and we will meet you at your convenience.