Mortgage Renewal Options
Renewing your RBC Royal Bank mortgage is easy. Find out what to expect as you approach your maturity date and explore your renewal options.
Benefits of Renewing Your RBC Royal Bank Mortgage
- Expert Advice : Renewal time is an opportunity to review your current financial situation - and our goal is to make sure you select the right mortgage options for your particular circumstances. We'll call you before your renewal date to talk about your interest rate preferences, your future plans (home renovations, a move, etc.) and more. You can also call us first or visit your branch whenever you're ready.
- 120-Day Early Renewal Option : Take advantage of our 120-day early renewal option, which allows you to renew early without any penalties1. This could save you in interest costs if rates rise before your regular renewal date.
- 30-Day Renewal Rate Guarantee : When you renew your mortgage at maturity, you are protected from an increase in interest rates, for the interest type and term you selected, in the 30-day period prior to your regularly scheduled renewal date. And, if the interest rate changes before your actual mortgage renewal date, you'll automatically receive the lower rate for the term and type you chose.
- Convenience : Unless you renew early, about three weeks before the end of your current term, you'll receive a renewal form in the mail detailing your payment options and your 30-day rate guarantee. If you have questions, simply call us or visit your local branch.
- No Re-qualification Required : If you're renewing an RBC Royal Bank mortgage, you don't have to re-qualify at renewal time. If your mortgage is held by another financial institution, we can make it easy to switch to RBC Royal Bank2.
Renewing Your Mortgage - How it Works
Renewing your RBC Royal Bank mortgage is simple! Here's how it works and a quick summary of some things you can do to make it even easier:
If you're close to renewal, now is a great time to review your financial goals and your plans for the future. You might want to consider the following types of questions:
- Has your financial situation changed since your last renewal?
- Are you planning any home renovations or will you need additional funds?
- Will you be moving within the next year?
- Do you prefer fixed or variable rates, or are you unsure?
Try the following tool for help choosing the right options:
Renewing for the first time? Have questions?
We'll contact you about 120 days out from your renewal date to discuss your current mortgage needs. (You can also call or visit us.) You can renew early at this point (or any time up to your renewal date), or you can wait and consider your options.
If you renew early, you'll be able to lock in at current interest rates even sooner - which could save you thousands of dollars in interest if rates rise before your renewal date.
About three weeks before your renewal date, we'll send you a renewal letter in the mail. If you have questions about your renewal rate and term, you can give us a call or visit your branch. Otherwise, all you need to do is review your renewal documents, select your renewal option, and sign and return the documents to us before your renewal date.
When you renew your RBC Royal Bank mortgage at maturity, you are protected from an increase in interest rates, for the interest type and term you selected, in the 30-day period prior to your regularly scheduled renewal date. And, if the interest rate changes before your actual mortgage renewal date, you'll automatically receive the lower rate for the term and type you chose.
It's that simple!
Renewal Rate Information
When you renew, there are a variety of mortgages with varying terms and rate types to choose from. Whether you are looking for the security of a fixed rate term, or the potential savings of a variable rate term, we offer a wide range of mortgage terms at competitive rates. Visit our Mortgage Rates page to review the current interest rate offerings.
Whether you decide to take advantage of early renewal or you wait to renew closer to your actual mortgage renewal date, you can rest easy knowing that you'll receive a competitive rate for the mortgage term you select for your mortgage renewal.
Consider more than rates when renewing your mortgage
Matthew - Account Manager
So it's time to renew your mortgage! Chances are, your circumstances have changed since you started your last mortgage term. Renewal is a great time to revisit your financial goals, figure out how your mortgage payments fit into your budget, and find a mortgage option that works best for you.
Don't sign up for the same type of mortgage that you had before without a review of your circumstances and the options available to you.
The first thing to consider is whether you prefer a fixed rate or variable rate term. As you may know, a fixed rate provides you with the security of knowing what your interest rate will be for the term of your mortgage (for example 5 years). A variable rate term will fluctuate with the prime rate, but offers a greater chance of saving on interest costs over time.
Understanding your comfort level with fluctuating rates will help you determine what's best for you.
Another point to consider is your amortization - or length of time it will take you to pay off your mortgage. If you have taken on additional expenses you may wish to decrease the amount of your monthly payment. This can be done by increasing your amortization. However, be aware that this will increase your overall costs because your mortgage will take longer to payoff. If your cashflow has improved since your last mortgage term, you may want shorten your amortization. This creates a higher monthly payment, but reduces your overall interest costs because you pay off your mortgage faster. If the interest rate for your new term is lower than your previous rate, by keeping your regular payments the same, you will reduce your amortization, without having an impact on your budget.
Too many Canadians just look at the rate when the real secret to saving money at renewal time is to explore term, amortization, payment frequency and even pre-payment options. Revisiting your financial picture and your future goals makes sense at renewal. By doing so you will be able to make any necessary adjustments to your mortgage that will allow you to live comfortably today while preparing for your future.