Frequently Asked Questions

1. How can decreasing your amortization period reduce your 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 vs. 15-Year amortization

Interest rate	Monthly payment	Total repaid⁽¹²⁾	Total interest cost⁽¹²⁾
25-Year amortization
5%	$465.29	$139,583	$59,583
7%	$560.34	$168,096	$88,096
9%	$662.39	$198,709	$118,709
15-Year amortization
5%	$630.50	$113,490	$33,490
7%	$714.60	$128,628	$48,628
9%	$803.62	$144,650	$64,650

You can also accelerate payment frequency, increase amount of mortgage payments, make principal prepayments or make Double-Up payments to further reduce amortization period.

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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.

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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).

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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: