Types of RBC mortgages
Royal Bank of Canada provides a range of mortgage solutions to cover a variety of clients’ needs:
- Financing the purchase of your first or next home;
- Financing home renovation projects with credit cards, personal loans, lines of credit, or RBC Homeline Plan that combines mortgage and home improvement line of credit under one plan;
- Financing the purchase of an investment property;
- Financing the purchase of a vacation property;
- Renewing your mortgage to save money with the right options for your current circumstances;
- Refinancing your mortgage to reduce your payments and interest rate, consolidate debt, or fund other goals;
- Switching to RBC bank from other financial institution.
How to apply for an RBC mortgage?
The first step to getting started with an RBC mortgage is getting pre-qualified. You can proceed with the pre-qualification process online by filling in the form on the RBC website. This mortgage pre-approval tool will help you get an idea of how much you can afford, and what your rate will be. Upon the pre-approval form completion, an RBC mortgage specialist will get in touch with you and guide you through the further process. When filling in the pre-qualification form, be ready to provide the following information:
- Whether you want to purchase your first home or next home;
- Your first name and last name;
- Your address;
- Your email;
- Your phone number;
- Your date of birth;
- Your address;
- Your consent to the terms and conditions of the mortgage pre-qualification process (in particular, that RBC will check your credit score).
Alternatively, you can apply for any of the mortgage solutions by RBC in person, at one of your local branches. The existing RBC clients can schedule an appointment with an RBC financial advisor either through RBC Online Banking or through the RBC Mobile app.
Requirements
When applying for a mortgage, have the documents verifying your identity, income, and employment at hand. If you are looking to purchase an investment property, RBC will check whether you meet the following requirements:
- Have a good credit history;
- Have a proven sufficient rental income;
- Have enough non-rental income to meet the obligations of the mortgage.
When switching your mortgage to RBC Bank, you will need to provide not only income and employment verification but also information about your current mortgage — maturity date and mortgage account number.
Pros and cons
Why go for a mortgage from RBC? Here are the advantages of their mortgage solutions:
- A wide range of options for different needs;
- Mortgage tools, calculators (payment calculator, value estimator), and useful guides are available on the RBC website;
- The quick and easy pre-qualification process;
- Access to exclusive home perks from RBC partners;
- An opportunity to get a cash bonus and switch fees covered when switching your eligible mortgage to RBC.
As for the cons, note that RBC doesn’t work as a mortgage brokerage. So, they will strive to promote the solutions that are profitable for them. Next, in certain cases, RBC may charge you for the mortgage prepayment. To check the potential charges for making a prepayment, use Mortgage Prepayment Charge Calculator from RBC. Finally, the credit check during the pre-qualification process can be a drawback for borrowers whose credit record is far from perfect.
How to make a payment?
RBC offers flexible mortgage payment schedules – pay monthly, semi-monthly, bi-weekly, or weekly. If you want, you can stick to an accelerated bi-weekly or accelerated weekly basis. Once a year, you can use your right to skip your mortgage payment.
