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Learn how the RBC Homeline Plan Works
The RBC Homeline Plan combines your RBC Mortgage and Royal Credit Line into one product that allows you to access the equity you have in your home.
As your home equity increases with mortgage payments, your credit line also increases (up to applicable limits), giving you the power and flexibility to finance your next home improvement project, a family member’s education or to consolidate debt – all at rates lower than most other borrowing options.
Benefits of the RBC Homeline Plan
Low interest rate
Pay your line of credit balance on flexible terms
Your available credit grows with your equity
Access credit when you need it
Is the RBC Homeline Plan Right For You?
Your home may be your biggest single investment. An RBC Homeline Plan allows you to invest in other areas of your life that are important to you.
- Home improvements Whether you’re looking to update your home, repair a leaky roof, replace old appliances or reduce the carbon footprint of your home, the RBC Homeline Plan can help you boost your home’s value and save you money when making energy-efficient changes.
- Education Invest in your future or the future of someone close to you by using your home’s equity to fund private or post-secondary education.
- Debt consolidation Do you have multiple credit products at high interest rates? Consolidating your debt into a single, lower-interest rate product can save you money and bring you peace of mind.
- Emergency readiness From unexpected job loss to medical expenses to emergency car repairs, an RBC Homeline Plan offers easy access to funds that can help you manage through challenging financial times.
Common Questions About Using Your Home Equity
Here are common questions we get about the Home Equity Line of Credit (HELOC) plan.
It’s always important to understand the benefits and risks of the borrowing options available to you. For instance, the Royal Credit Line portion of the RBC Homeline Plan comes with a variable rate that may rise and fall with RBC’s prime rate.
At the same time, because the line of credit is secured by your real estate, the rate is generally one of the lowest available.
RBC Advisors are here to evaluate your financial situation and the options best suited for your individual needs and circumstances.
The changes have been implemented in line with the latest regulatory guidance, aimed at helping homeowners maintain greater long-term financial stability. To achieve this objective, a portion of the principal repaid on your mortgage loan will not be re-advanceable.
Here’s what has changed: If total limit of your RBC Homeline Plan is greater than 65% of your home’s value at time of application, part of the principal of each mortgage payment will go towards increasing the limit on your Royal Credit Line, with the remaining going towards reducing your overall plan limit.
If you have an existing RBC Homeline Plan, you won’t experience any changes today. However, when you renew a mortgage within your plan, complete a reallocation, refinance and/or a limit change, your RBC Homeline Plan will be updated to align with the latest regulatory requirements. We encourage you to contact your RBC Advisor to discuss your RBC Homeline Plan and any potential impact these changes may have.
You can pay back the line of credit portion of your RBC Homeline Plan at any time without penalties or prepayment charges. You can also make interest-only payments1 as long as you have the product.
How quickly you pay down the balance is up to you.
Levering your home equity can help improve your cash flow in a number of ways. It can be used for large purchases, consolidating higher interest rate debt and financing other goals at a lower borrowing cost as compared to other types of loan products.
Equity is the difference between your home’s value and any outstanding debt registered to your home (i.e. your mortgage). Your equity goes up as you pay down your mortgage and/or the value of your home increases or decreases.
With a home equity line of credit, you can borrow against this equity at a lower interest rate compared to loans not secured by equity.
See How Much You Can Save
The chart below illustrates just one example of how the RBC Homeline Plan might work for a Canadian homeowner with a mortgage, car loan, line of credit and outstanding credit card balances.
| Without RBC Homeline Plan® | With RBC Homeline Plan® | |
|---|---|---|
| Mortgage2$200,000 | $1,008/ month(interest 4.5%) | With a HLP you can split your mortgage balance between fixed rate portion of the HLP (Mortgage) and the variable rate portion (Line of Credit) $504/month $100,000 mortgage - fixed (interest 4.5%) $449/month $100,000 mortgage - variable (interest 3.5%) |
| Car Loan3$25,000 | $519/month(interest 9.0%) | Make payments through the Line of credit portion of your HLP $460/month Car Line of Credit (Royal Credit Line®3, Secured – Interest 4.0%) |
| Line of Credit$9.500 Credit Cards$4,300 | $51/month(Unsecured – interest 6.5%)$70/month(Interest 19.5%) | Transfer your balance to the Line of credit portion of your HLP for better interest rates. $46/month Line of Credit (Primary Royal Credit Line – Interest 4.0%) |
| Total | $1,649/month(Interest 5.3%4) | $1,460/month(Interest 4.0%4) |
| Savings with RBC Homeline Plan®: $189/month, $2,268/year | ||
This chart is for general information purposes only and should not be relied upon as a complete analysis of the subject matter. Please speak to an RBC Advisor to evaluate your specific financial situation and options.
Special Offer Rates and Terms
The RBC Homeline Plan® is available with a variety of fixed5 and variable6 mortgage rates and terms. Below are several of our current special offers7:
| Term | Rate | APR8 |
|---|---|---|
| 4-year fixed closed term | 5.290% | 5.320% APR |
| 5-year fixed closed term | 5.140% | 5.170% APR |
| 5-year variable closed term | RBC Prime Rate - 0.310% (6.890%) | 6.920% APR |
Today's Royal Bank of Canada prime rateRBC Prime Rate6: 7.200%
HomeProtector® Insurance
Protect yourself and your family's lifestyle, plus safeguard your assets and net worth with HomeProtector® Insurance.
Stay Connected to Your Credit with RBC Alerts
RBC Alerts automatically let you know anytime the available credit on your RBC Homeline Plan falls below $100. You can also customize your alerts to meet your personal financial needs – turn off alerts you no longer want, adjust how you receive alerts and set alert limits that work best for you.
