Mortgages

Let us make your dreams of buying or constructing your home a reality. Our dedicated mortgage advisors 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.
-Purchase, construct or refinance a non owner occupied residential property for investment purposes

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Purchase of Property - Residents

  • At RBC, as a resident, you can obtain financing for the purpose of purchasing an owner occupied residential property including: townhouses and condominiums.
  • Up to 80% financing is available (Mortgage Indemnity Insurance is available for amounts in excess of 80%); therefore a minimum down payment of 20% is required.
  • Amortized monthly payments of principal and interest can be granted for up to 30 years (maximum term and age of client not to exceed government age of retirement).

 

Purchase of Residential Land/Lot

  • Ar RBC, you can obtain financing to purchase residential lots in government approved subdivisions for the purpose of eventually constructing an owner occupied home
  • Standard financing is available for up to 80% therefore a minimum down payment of 20% is required
  • Amortized monthly payments of principal and interest can be granted for up to 15 years (maximum term and age of client not to exceed government age of retirement )

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  • We offer financing to build or undertake major renovations for owner occupied residential property
  • This type of mortgage is set up as interest only facility during the construction period
  • During the period of construction, (maximum of 1 yr), you 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 mortgage with a monthly blended installment comprising both Principal and Interest.
  • Amortized monthly payments of principal and interest can be granted for up to 30 years (maximum term and age of client not to exceed government age of retirement

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  • You can utilize the equity that has been built up in your property for home improvements, debt consolidation, investments, educational, or medical expenses with the supporting collateral being a mortgage over the property.
  • Financing is available for up to 80%of the value of the property
  • Amortized monthly payments of principal and interest can be granted. The maximum term and age of client is not to exceed government age of retirement. For further details on the maximum tenor please contact your branch.

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
What is the available equity in 2012 that can be utilized assuming the original value of the property remains the same?

Answer Scenario 1:
With standard LTV

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

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
  Maintains current market value of $560,000
With standard LTV [80% * $560,000] - $360,000 = $88,000

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  • At RBC, you can obtain a mortgage to finance the purchase of a non owner occupied residential property for investment purposes, to build or undertake major renovations or to refinance a mortgage on a non owner occupied property.
  • Up to a maximum 66.7% financing is available; therefore a minimum down payment of 33.3% is required.
  • Amortized monthly payments of principal and interest can be granted for up to 20 years (maximum term and age of client not to exceed government age of retirement).

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Collateral:

  • Registered First Mortgage of a continuing nature over property to be financed;
  • Assignment of all risk comprehensive policy over the property;
  • Assignment of Life Insurance for the mortgagor(s) (Optional but highly recommended)

Documents:

  • Agreement for Sale
  • Deed for property
  • Appraisal report (not older than 6 months)
  • Builder’s quotation or purchase agreement

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FAQs

Expand - XYZ For what purpose can I apply for mortgage financing?

Expand - XYZ What are the general requirements for obtaining mortgage financing?

Expand - XYZ What are some of the basic documents required?

Expand - XYZ How long does the entire process take?

Expand - XYZ What are the benefits of the mortgage financing?

Expand - XYZ Can I apply for a Mortgage with another person?

Expand - XYZ Can my partner’s income be included as well?

Expand - XYZ Can I make lump sum payments towards my mortgage loan?

Expand - XYZ What is the interest rate and how is it calculated?

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

Expand - XYZ What will be my monthly installments?

Expand - XYZ What are the costs involved in obtaining a mortgage?

Expand - XYZ When buying a new house, who will appraise its value?

Expand - XYZ What type of insurance is available when it comes to mortgage financing?

 

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