Canada’s six largest banks announced plans to provide financial relief to Canadians impacted by the economic consequences of COVID-19. This financial relief includes the option of temporarily deferring payments on a mortgage and line of credit^. We want you to know the facts and financial implications if you are considering payment deferrals.
We understand that our clients may be facing financial hardship, from job loss, to instability and the uncertainty ahead. We introduced relief programs for those impacted by the COVID-19 outbreak, to give clients the flexibility, and help free up cash flow today, so they can plan for your current and future needs.
Financial Relief for Personal Clients
For immediate financial relief
To defer one monthly payment on your Personal Loan follow these simple steps:
- Log into Online Banking.
- From the Account Summary page, select the loan you would like to manage.
- Scroll to the bottom of that page and select the “Skip a Payment” option to defer a payment.
- Follow the instructions.
Deferring a payment function is available through RBC Online Banking 24 hours a day and 7 days a week.
Important: In order for the request to be processed for a loan that is due on the same date the request is being submitted by the client, the request must be entered by 7:44 PM local processing centre time.
Program Details: Note that skipping a payment is a deferral, not a waiver of that payment. If you defer a payment and your loan is protected with Loan Protector Insurance, the premium (for the period of the deferred payment) will be collected from your next regular payment. This means less of the next payment will be used to reduce the principal amount of your loan.
Fixed Rate Loans: If a payment is deferred for a fixed rate loan, interest will continue to accrue and will be collected when the next payment resumes. For fixed rate loans, deferred interest will still be added to the outstanding balance but interest will not be charged on the deferred interest amount.
Variable Rate Loans: If a payment is deferred for a variable rate loan, the unpaid accrued interest as well as the interest on the part of the principal that went to payment of the missed Loan Protector premium will be added to the loan principal balance (‘’Combined Amount’’) thus increasing the principal amount outstanding on your loan. Interest, at the interest rate of the loan, is charged on the Combined Amount until it is paid in full.
Update: For variable rate loans, RBC will provide a credit to assist with offsetting the interest charged on deferred interest payments during the deferral period. Eligible clients will receive this credit following the end of our deferral period, if their loan is in good standing and has not been repaid in full by the time the credit is made. No action is required by you. We will process a onetime credit following the end of RBC’s deferral program. The credit will be made to your loan account towards the end of the year*.
You may pay the deferred payment at any time.
Note: Deferring a payment under either a fixed rate loan or a variable rate loan may result in extending the amortization period of the loan and may significantly increase your interest costs over the life of your loan, so it's important to carefully evaluate your financial situation and priorities before exercising this option.
For longer term relief:
Should you require additional financial relief beyond the first month, please use our online booking tool to schedule a time to speak with one of our advisors by phone.
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Additional Assistance or Other Questions on financial relief for personal loans:
If you are not enrolled in RBC Online Banking or unable to book an appointment using our online booking tool, you can request a callback for personal loan help.
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While some of these options may be available to you, they may increase your interest costs or your outstanding principal balance over the life of your loan or increase the outstanding balance on your credit card during the relief period, if applicable. You should carefully evaluate your financial situation and priorities before exercising any of these options to the extent they are available to you. The RBC Client Relief Program is subject to change and is available for a limited time with some options available only until June 30, 2020.
The availability of various deferral program options under the RBC Client Relief Program is subject to change and may be amended at any time.