Give Your Employees and Prospects an Incentive to Relocate
If your company hires talent from other provinces or countries, consider the tax-effective RBC Royal Bank Mortgage Relocation Program, which allows you to offer prospective and existing employees an additional financial incentive to relocate.
RBC Royal Bank can offer your business several options, with the flexibility to customize the program to meet your company's unique needs.
How the Program Works
Our specialized team will work with you to ensure a quick and easy setup and we'll build a customized program to meet your company's specific objectives. We provide five ways to offer subsidies to your employees and we'll help you select one or more options to customize your plan.
5 Ways to Offer Subsidies
- Fixed-Dollar Subsidy: This option allows your business to subsidize a predetermined amount per year or for the term of your employee's mortgage. Your business makes payments to RBC Royal Bank based on the mortgage payment schedule chosen by your employee.
- Housing Price Differential Compensation: This benefit helps to compensate your employee for a housing price differential (for example, if an employee is relocating from Edmonton to the more expensive Toronto area). Your business pays a percentage of the employee's mortgage interest, which is based on a maximum fixed amount that you've set.
- Yearly Variable Percentage Subsidy: This option is similar to the Housing Price Differential Compensation option in that you can set a maximum dollar amount for the subsidy. The difference is that the amount is reviewed on an annual basis rather than at the end of the mortgage term. This helps to eliminate subsidy cost uncertainty due to changing interest rates.
- Interest Rate Buy-Down: This option lets you buy down an employee's mortgage interest rate to the government's prescribed rate without creating a taxable benefit for the employee. Your business makes a single payment upfront to RBC Royal Bank that covers the mortgage interest buy-down for the term selected.
- Lump Sum Principal: This option allows your business to subsidize a portion of an employee's mortgage principal upon relocation. Since this option is 100% taxable, it should only be offered as part of a comprehensive relocation plan. Before implementing this type of plan, we recommend that you speak with your company's tax advisor.
Attract new and retain key employees with a strategic, cost-savings program customized to help meet your specific corporate objectives.
Offer a customized and simple program that your competitors may not.
No Loan Risk or Capital Outlay
Your company doesn’t have to provide mortgage financing, as we manage the mortgage transaction directly with the employee.
Reduce your administrative processes with simplified, system-generated reporting. We also encourage you to speak to your tax advisor about how some or all of the subsidy may be tax-free to employees.
Enhanced Corporate Image
Enhance your corporate image and increase employee engagement across your organization.
Employee Customer Service
Specialized bilingual team to manage your employees’ entire mortgage transaction, including access through a dedicated hotline or via email.
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A Capital Accumulation Plan (CAP) is a tax assisted investment or savings plan that permits the members of the CAP to make investment decisions in accordance with options offered within the plan. A Group Savings plan is considered a CAP. The Joint Forum of Financial Market Regulators issued the CAP guidelines to clearly outline the responsibilities of parties involved in a CAP and to ensure that members participating in a CAP were receiving the information and assistance they needed to make investment decisions.
RBC Royal Bank will work with you to ensure that your plan complies with the CAP guidelines.See complete CAP Guidelines