As you pay off your mortgage principal you can immediately re-borrow those funds from the credit line. To get a Homeline you need strong credit and 20% equity minimum. Homeline is a Readvanceable mortgage that's part home equity line of credit (HELOC) and part mortgage. RBC's most popular product by far with their mortgages is it's RBC Homeline Plan. Breaking the mortgage entails a penalty (based upon the certain mortgage you have and the terms applicable), and a discharge/assignment fee (up to $250 in some provinces, as of January 2020). RBC may also charge an approximately 0.10%-point higher rate if your amortization is over 25 years. As for payment frequency, you can choose any of the following on RBC mortgages: monthly, semi-monthly, bi-weekly, weekly, accelerated bi-weekly and accelerated weekly payments. Most RBC mortgage rates come with a standard 120-day rate hold, 10% lump sum and 10% payment increase prepayment privileges, optional double-up payments and a Skip-A-Payment feature. Extended amortizations are available up to 30 years. Its second most popular term is its variable, which comes with fixed payments that don't increase or decrease when prime rate changes. They are not the rates most customers actually pay, even though their penalties are based on this vitally important factor. Special offer rates are rates that RBC promotes as its discounted rates.ĭiscretionary rates are typically the best bank rates available that a lender will match on. They are available to well-qualified borrowers only, and you often need to negotiate to get them.Īs with most lenders, RBC's most popular term is its 5-year fixed. They typically make the first move when it comes to lowering their Prime Rate and most of the big 6 banks follow suit sooner or later! The bank has an advantage in that it has the lowest funding costs of any lender in the country, which means they can match any rate on the market and still make more at the end of the day. Posted rates are non-discounted rates that banks use for reference purposes and penalty calculations. You will often find more flexible mortgages elsewhere for a similar or better rate! Negatives are RBC's 10% once-annual lump-sum prepayment option is one of the most restrictive in Canada. If you want the long and the short RBC is a great bank with a lot of options but also only restrictive to only their products. You heard that right- THE BIGGEST IN THE WOLRD!!! That's a lot of muscle for one lender to have. As of 2019 Q1 they held $271 Billion in Mortgages in Canada 27% of the total mortgage market! Total mortgages in Canada add up as of Feb 2020 to 992 Billion Dollars! RBC also ranks among the largest in the world based on market capitalization (market cap is the market value of a publicly traded company's outstanding shares or share price x amount of shares held). RBC (Royal Bank) is the country's largest bank with more than 10 million clients domestically and 16 million globally from 1209 branches across Canada. RBC is Canada's Biggest Mortgage Lender, but depending on your situation maybe not the best place to get your mortgage. Pro's and Con's of getting an RBC Mortgage
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