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- How can decreasing your amortization period reduce your interest costs?
- Can you take your mortgage with you if you move?
- How often can you refinance?
- Can consolidation of your debt save you money?
1. How can decreasing my amortization period reduce my interest costs?
If you choose a shorter amortization period, you can save a lot of money and live mortgage-free sooner.
Just take a look how much you will save on your total interest costs on an $80,000 mortgage amortized over 15 years versus the same mortgage amortized over 25 years.
Mortgage $80,000, 25-year amortization:
| Interest rate |
Monthly payment |
Total repaid* |
Total interest cost* |
| 5% |
$465.29 |
$139,583 |
$59,583 |
| 7% |
$560.34 |
$168,096 |
$88,096 |
| 9% |
$662.39 |
$198,709 |
$118,709 |
| 11% |
$770.03 |
$230,999 |
$150,999 |
Mortgage $80,000, 15-year amortization:
| Interest rate |
Monthly payment |
Total repaid* |
Total interest cost* |
| 5% |
$630.50 |
$113,490 |
$33,490 |
| 7% |
$714.60 |
$128,628 |
$48,628 |
| 9% |
$803.62 |
$144,650 |
$64,650 |
| 11% |
$897.07 |
$161,469 |
$81,469 |
* Calculated assuming a constant interest rate throughout amortization period over the life of the mortgage. Compounded half-yearly not in advance.
You can also accelerate payment frequency, increase amount of mortgage payments, make principal prepayments or make Double-Up payments to further reduce amortization period.
2. Can you take your mortgage with you if you move?
RBC Royal Bank's mortgage portability option lets you transfer the terms and conditions of your current RBC Royal Bank mortgage to your new home, subject to a credit review and property appraisal when you make the new home purchase. You may also qualify to Add-On to the mortgage if you require a larger mortgage amount.
Please note the mortgage portability option cannot be used in combination with the assumable mortgage option.
3. How often can you refinance?
There is no maximum for how many times you can refinance. But you must qualify each time you apply. For more information, contact a mortgage specialist.
Remember, you can use our mortgage add-on option to borrow up to 95% of the appraised value of you home at the time of the Add-On, minus the amount of your outstanding mortgage (Default insurance premiums may apply).
4. Can consolidation of your debt save you money?
You could save a substantial amount by consolidating your outstanding high interest loan and credit card balance using our Add-On Option. Take a look:
| Credit Type |
Balance |
Annual Interest |
Annual Interest with Add-On3 |
Savings |
| Credit Card |
$10,000 |
$28801 |
$600 |
$2280 |
| Loan |
$5,000 |
$3502 |
$300 |
$50 |
| Total |
$15,000 |
$3230 |
$900 |
$2330 |
1 Based on 28.8% annual interest.
2 Based on 7% annual interest.
3 Based on 6% annual interest.
Plus, you'll also enjoy the added convenience of having all your debt, with one monthly payment.
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RBC Homeline Plan
Client Story
Randy & Neil using
RBC Homeline Plan
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