You are on: Using Your Home Equity
If you need access to additional funds, using the equity in your home can be a lower cost way to borrow the money than taking out a traditional loan. For example, you can use your home equity to:
Another common reason for refinancing a mortgage is to consolidate debt such as higher interest credit card balances and loans. By consolidating these debts into your mortgage at a lower interest rate, you can save money and have all your debt in one place. Plus, our pre-payment options give you the flexibility to pay off your loan more quickly.
Whatever your reasons for wanting to refinance your mortgage, an RBC® mortgage specialist will take a look at your current home equity and your goals for the future to recommend the best solution. Depending on your situation, here are a few of the refinancing solutions that may be available to you:
You are on: Mortgage prepayment Charges
Thinking about refinancing, prepaying a large amount or renegotiating your current mortgage to take advantage of lower interest rates? Before you do, there are several things to keep in mind—the most important one being whether or not you will have to pay the mortgage pre-payment charge.
The purpose of a prepayment charge is to compensate the lender for the economic costs it incurs when a prepayment amount exceeds the prepayment privileges permitted under the mortgage.
The best way to know whether you can still save money in the long run after paying the mortgage pre-payment charge is to visit your RBC branch and talk with us.
Our "Mortgage Prepayment Charge Calculator" can also help you determine how much it could cost to break your mortgage. If you have a fixed rate closed mortgage, our calculator can help you determine what interest rate you would need to get in order to "break even."
To learn more about breaking your mortgage and mortgage pre-payment charges, see:
Call us today about managing your mortgage. We can help explain your options and offer advice on mortgage solutions to help you achieve your goals.