Skip to main content

Changes to Canada's Mortgage Rules

On October 17, 2017, the federal government announced changes to the interest rate used to qualify borrowers for a conventional mortgage (i.e. a mortgage where you have made a down payment of at least 20%). As of January 1, 2018, when qualifying clients for a conventional residential mortgage, RBC is required to approve a conventional residential mortgage at the greater of the client rate plus 2% or the 5-year benchmark rate published by the Bank of Canada.

Understanding the impact of the new rules on client transactions


Scenario Old Qualification Rules Apply1 New Qualification Rules Apply2
You apply for and obtain a firm RBC mortgage approval and a binding purchase agreement prior to January 1, 2018.  
You switch your mortgage to RBC from another financial institution or refi nance an existing RBC mortgage and complete your application prior to January 1, 2018  
You receive an RBC firm mortgage approval before January 1, 2018 and require changes to the application after January 1, 2019. Speak to your RBC Mortgage Specialist Speak to your RBC Mortgage Specialist
You receive an RBC approved pre-approval letter and are ready to proceed with a full application after January 1, 2018. Speak to your RBC Mortgage Specialist Speak to your RBC Mortgage Specialist
You complete a mortgage application on or after January 1, 2018  

Need help understanding the impact of the new rules?

RBC® mortgage specialists are well versed in the new rules and can help you understand them better. We provide homebuyers with fast, firm approvals and competitive extended-rate commitments from the time of the approval, giving you solid financing. We can provide informed advice to help you realize the home of your dreams.

Contact an RBC Mortgage Specialist Today to Learn More.

Find a mobile mortgage specialist in your area.

Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada.
For a term of less than five years or a variable term, RBC will use the greater of the client rate or the fi ve-year benchmark rate published by the Bank of Canada. For a five-year or greater term, RBC will use the client/contract rate.
RBC will use the greater of the client rate plus 2% or the five-year benchmark rate published by the Bank of Canada.

Personal lending products and residential mortgages are offered by Royal Bank of Canada and are subject to its standard lending criteria.