Mortgages

Let RBC Royal Bank make your dreams of home ownership - a reality. Our dedicated mortgage specialists will guide you through the mortgage process while ensuring all your needs are met.

We offer a range of mortgage financing options including:

Purchase of residential property
Purchase of residential lots
Construction or renovation
Utilization of equity for investments, emergencies, expenses, debt, education, medical, etc.

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You are on: Purchase of Residential Property tab

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 90% (as Mortgage Indemnity Insurance is available for amounts in excess of 80%); therefore a minimum downpayment of 10% is required.
Amortized monthly installments of principal and interest payments over the term of the facility.
Maximum term of loan is 30 years (not to exceed government age of retirement).

You are on:Purchase of Residential Lots tab

At RBC you can obtain a mortgage to purchase residential property in government approved subdivisions for the purpose of eventually constructing an owner-occupied home.
Financing is available for up to 90% (with Mortgage Indemnity Insurance), therefore a minimum downpayment of 10% is required.
Amortized monthly installments of principal and interest over the term of the debt.
Maximum term of loan is 10 years (not to exceed government age of retirement).

You are on: Construction tab

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 monthly blended installment of principal and interest.
Amortized monthly payments of principal and interest are granted over the term of debt
Maximum term loan is 30 years (not to exceed government age of retirement).

You are on: Utilization of Equity tab

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 are granted over the term of the debt.
Maximum term of loan is 30 years (not to exceed government age of retirement).

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?

Answer:

LTV	Maximum Equity Available
	Maintains current market value of $500,000.
with standard 80%	[80% * $500,000] - $360,000 = $40,000

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

Answer:

LTV	Maximum equity available
	Appreciates to $560,000
With standard LTV	[80% * $560,000] - $360,000 = $88,000

You are on:What do I need tab

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
WASA Clearance Certificate and up to date land and taxes

Construction/Renovation:

Collateral:

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

Documents:

Approved Plans - Town and Country
Builder's estimate and references
Quantity surveryor's report
Most recently paid WASA bill (for renovations only)

You are on: Frequently Asked Questions tab

For what purpose can I apply for mortgage financing?

What are the basic requirements for obtaining mortgage financing?

What are some of the basic documents required?

How long does the entire process take?

What are the benefits of mortgage financing?

Can I apply for a mortgage with another person?

Can I make lump sum payments towards my mortgage loan?

Type of Payment	Description
Partial Prepayment	One (1) annual lump sum payment of up to 10% of the original Loan Amount is permitted. Any partial prepayment in excess of 10% will attract an additional payment of three (3) months interest. All prepayments must be made on a regular payment date.
Full Prepayment (Early Liquidation)	Permitted, provided you make an additional payment of three (3) months interest.

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

Mortgage Features	Standard Mortgage Financing Option	Early Pre-payment Option
Mortgage financing amt.	$900,000	$900,000
Tenor	25 years	25 years
Monthy Payments	$5,937	$5,937
Annual Lumpsum payments made	$0.00	$10,000
Total number of monthly payments	300	229
Total interest paid	$881,107.32	$646,631.94
Total interest savings	$0.00	$234,475.38