Which Type of Mortgage is Right for Me?

Do you plan to pay off more than 10% of your original mortgage amount in the next year?

If you can afford to pay off more than 10% of the original mortgage amount off within the next year, and you plan to do so, select Yes. (For example, you have a mortgage for $150,000 and you plan to pay off more than $15,000 within the next year over and above your regularly scheduled payments.)

If you are planning on paying just your regular mortgage payment or 10% or less of the original mortgage amount, select No.

Answering this field accurately is important because it determines whether a closed or open mortgage is better for you:

• Closed Mortgage
  Closed mortgages are usually the better choice if you're not planning to pay off your mortgage in the short term. Interest rates for closed term mortgages are generally lower than for open term mortgages. Closed term mortgages offer you the ability to save on interest costs and pay off your mortgage faster. You will pay a prepayment charge if you wish to renegotiate your interest rate or pay off your mortgage balance prior to the end of its term.
• Open Mortgage
  Open mortgages may be appealing if you are planning to pay off your mortgage in the near future. They can be repaid either in part or in full at any time without prepayment charges. Open mortgages can be converted to any other term, at any time, without a prepayment charge. Interest rates for open mortgages are generally higher than for closed mortgages because of the added pre-payment flexibility.

Are you moving within the next 12 months?

If you are moving within the next year, you may need to take advantage of the portability option of your mortgage.

A portable mortgage may let you transfer the existing balance, interest rate and all the existing terms and conditions of your current RBC Royal Bank mortgage to your new home, subject to a credit review and property appraisal when you make the new home purchase. By "porting" your mortgage, you avoid prepayment charges for breaking your mortgage early. You may also qualify to add-on to the mortgage if you require a larger mortgage amount.

Learn more about the Mortgage Portability option.