Once every 12 months you have the option to skip mortgage payments (principal and interest), provided that:
You can skip up to four consecutive weekly payments, up to two consecutive bi-weekly or semi-monthly payments, or one monthly payment. You will still be responsible for paying your usual insurance premiums and property tax installments, where applicable.
There is no fee for this option, and your payments won't change during the term of your mortgage. Instead, any skipped interest is added to the principal balance.
One thing you need to keep in mind is that you may significantly increase your interest costs over the life of your mortgage, so it's important to carefully evaluate your financial situation and priorities with us before exercising this option. Try our calculator to find out what it could cost.
Please note that Skip-A-Payment is not available with terms of 10 or 25 years. Additional requirements apply for CMHC-insured mortgages.
If you wish, you can repay your skipped payment anytime during the term of your mortgage. If you have made double-up payments during the term of your mortgage, you have the option to skip an equal amount of payments.
If you face exceptional circumstances such as parental leave, temporary lay-off with recall, or other unexpected expenses you may consider skipping up to 4 consecutive months of mortgage payments once during your mortgage term.
The Extended Skip-A-Payment option is subject to credit approval. It is offered with Conventional and Genworth mortgages, except for those with terms of 10 or 25 years. The mortgage must be up to date and the current balance, together with the amount of the payment you wish to skip, cannot exceed the original amount of your mortgage.
By taking advantage of Extended Skip-A-Payment, you may significantly increase interest costs over the life of your mortgage, so it's important to carefully evaluate your financial situation and priorities with your RBC Royal Bank mortgage specialist before exercising this option.
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.