Making Double-Up® Payments
RBC Royal Bank's powerful Double-Up option gives you the flexibility to prepay any amount between $100 and the equivalent of the principal and interest portion of your regular monthly mortgage payment on any or every payment date.
Good news: Your Double-Up payment is applied directly against the principal balance of your mortgage, which cuts down the life of your mortgage and saves interest costs.
This example shows how effectively you can reduce the time it takes to pay off your mortgage simply by doubling up one monthly payment each year.
Example: $80,000 Mortgage at 8.00%*
| |
Monthly payments and 25-year amortization |
With one double payment each year |
| Mortgage repaid (years) |
25 |
20.1 |
| Total interest cost** |
$103,165 |
$80,532 |
| Interest savings** |
N/A |
$22,633 |
* Calculated, semi-annually not in advance.
** Over the life of the mortgage, assuming constant interest rate throughout amortization period.
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