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The RBC Homeline Plan is a flexible, easy solution to help you reach many worthwhile goals. To apply simply call 1-800-ROYAL® 1-1 or visit any RBC Royal Bank branch.
The RBC Homeline Plan gives you the power and flexibility to manage your overall borrowing needs under one simple plan. RBC Homeline Plan's line of credit provides you with access to personal credit, at low interest rates, that you can use to consolidate existing higher interest debt or for life's important goals - such as home renovations, your child's education, or a larger investment portfolio. You have the power to manage your credit decisions and minimize your interest costs.
What do you want from the RBC Homeline Plan?
Your Goal:
"I want to reduce the interest costs on my outstanding debts and improve cash-flow."
Your Solution:
Credit card payments, unsecured lines of credit and personal loans typically have higher interest rates than a mortgage or secured line of credit. Use the RBC Homeline Plan to consolidate your outstanding balances and you can take advantage of those lower interest rates. The Homeline Plan also allows you to segment specific debts (such as a car loan), so you can ensure that the entire amount is paid off as quickly as possible through fixed payments.
Example:
Here's an example of how you could use the RBC Homeline Plan to save on interest costs and increase cash flow:
Before the RBC Homeline Plan†
 |
|
| |
|
|
|
AMOUNT |
|
|
INTEREST |
|
|
AMMORTIZATION |
|
|
MONTHLY PAYMENT |
|
| |
Car Loan |
|
|
$25,000 |
|
|
8.00%**
(Variable) |
|
|
5 YEARS |
|
|
$507 |
| |
Unsecured Line of Credit |
|
|
$9,500 |
|
|
6.50%**
(Variable) |
|
|
N/A |
|
|
$52 |
| |
Credit Card |
|
|
$4,300 |
|
|
19.5%**
(fixed) |
|
|
N/A |
|
|
$70 |
| |
TOTAL |
|
|
$38,800 |
|
|
8.91%**
(Weighted average) |
|
|
|
|
|
$629 |
|
|
|
Potential Savings with the RBC Homeline Plan†
|
|
| |
|
|
|
AMOUNT |
|
|
INTEREST |
|
|
AMMORTIZATION |
|
|
MONTHLY PAYMENT |
|
| |
Line of Credit to consolidate debt |
|
|
$13,800 |
|
|
4.25%**
(Variable) |
|
|
N/A |
|
|
$49 |
| |
Secondary Line of Credit for Car Loan |
|
|
$25,000 |
|
|
4.25%**
(Variable) |
|
|
5 YEARS |
|
|
$463 |
| |
TOTAL |
|
|
$38,800 |
|
|
4.25%**
(Weighted average) |
|
|
|
|
|
$512 |
|
|
|
Potential monthly cash flow savings: $117
Potential annual cash flow savings: $1,404 back in your pocket or to meet other goals!
† Charts are for illustrative purposes only.
** Interest rates are used for illustration purposes only and may not be the same as interest rates currently offered us.
Your Goal:
"I want to minimize interest costs as much as possible, however I am concerned about interest rates increasing."
Your Solution:
With the RBC Homeline Plan you could divide your mortgage into several segments. This allows you to take advantage of the interest savings of a variable rate mortgage, while fixing a portion of your balance in a fixed rate mortgage term. You'll receive the interest savings provided by variable rates and protection from possible future rate increases provided by fixed rates. This could save you thousands of dollars in interest costs, while ensuring your peace of mind.
Example:
Here's an example that uses the Homeline Plan to reduce interest costs and provide protection from interest rate fluctuations:
|
|
| Before Homeline Plan |
|
| |
|
|
|
Amount |
|
|
Interest |
|
|
Monthly |
|
| |
Mortgage |
|
|
$100,000 |
|
|
5.0%**
(5-year fixed) |
|
|
$581 |
|
| After Homeline Plan |
|
| |
|
|
|
Amount |
|
|
Interest |
|
|
Monthly |
|
| |
Mortgage Segment 1 |
|
|
$50,000 |
|
|
3.75%**
(5 year variable) |
|
|
$257 |
| |
Mortgage Segment 2 |
|
|
$50,000 |
|
|
5.00%**
(5-year fixed) |
|
|
$290 |
| |
TOTAL |
|
|
|
|
|
|
|
|
$547 |
|
|
|
† Charts are for illustrative purposes only.
** Interest rates are used for illustration purposes only and may not be the same as interest rates currently offered us.
Following this strategy, you could save $34 per month on your mortgage payment.
Your Goal:
"I want to pay off my outstanding balances as quickly as possible."
Your Solution:
With the RBC Homeline Plan, you could consolidate your outstanding balances at lower interest rates, this means more of your payment will go to pay down the principal. You may even be able to free up cash flow for other purposes, such as Double-Up mortgage payments or lump sum mortgage prepayments. By directing your savings into paying down your mortgage and other debts faster, you can dramatically reduce your overall interest costs.
Your Goal:
"I have a specific goal I want to meet now, such as sending my child to university or renovating my home."
Your Solution:
With the RBC Homeline Plan, you always have access to funds through the Royal Credit Line. It's an easy way to borrow funds, when you need them, while keeping your overall interest costs low. Better yet, you can segment specific debts to be paid off within a specific time frame or to manage them separately for tax purposes.
RBC Homeline Plan is a smart, easy solution to help you reach many worthwhile goals. To apply simply call 1-800-ROYAL® 1-1 or visit any RBC Royal Bank branch.
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