RBC Mortgage Calculator of March 2023

What is the RBC mortgage calculator?

Buying a home is a significant investment with many things to consider. RBC offers a variety of mortgage loans and has developed a loan calculator for these products to make it easier for borrowers and potential customers to access them.

• The mortgage payment calculator shows you how to combine two tasks: taking out a loan and saving money. So even before you submit your loan application, you can get an idea of how much your monthly payments will be.

• The Home Value Estimator allows you to estimate the value of your home even before you use the services of a certified appraiser. It shows price dynamics and reflects the change in value, considering your investments to improve your home.

• The Neighborhood Explorer is not a typical calculator but a tool to help you choose the location for your dream home based on your recreational preferences, housing type preferences (condo, house, etc.), and budget.

• The Home by RBC calculator helps you calculate the home's cost. It is available to customers who use RBC's online banking.

• “How Much Home Can I Afford?” is a calculator that examines your income and expenses within the family budget and shows you what mortgage amount is acceptable to you from the standpoint of mortgage principal, mortgage insurance, amortization period, interest rate, down payment, monthly payments, property taxes, etc.

• The "Rent or Buy" calculator is a handy tool when the borrower is faced with the decision of whether it makes sense to continue renting or if it is time to buy a home. The results can be surprising, but it is helpful to see preliminary numbers before deciding to make a profound change and a significant financial commitment to the lender.

• The Mortgage Prepayment Charge calculator helps you see under what conditions you can get a good deal if you decide to cancel your existing mortgage and take advantage of lower interest rates.

• The "What type of mortgage is right for me?" calculator helps you compare fixed interest rates vs. variable interest rates and different mortgage loan products offered by the bank. This way, you can more easily analyze what is best for you, depending on your needs and resources.

• The Credit Score Tool is a calculator that helps you transform your needs, abilities, and resources into the best choice of mortgage product with reasonable mortgage payments and interest rates, minimum down payment, and sufficient mortgage amount.

Why do you need the RBC mortgage calculator?

Taking out a mortgage loan is an equation with many unknown values, especially since it is usually a commitment with an extended amortization period. Therefore, even if you are very good at math, it's always handy to have an automated tool to compare against estimated results and make a weighted decision.

An RBC Bank mortgage calculators use precise formulas and save your time. You can simply go through the available mortgage products, enter the numbers you know, and get the result you can think about and discuss with your family, partner or advisor.

Suppose you are unsure which option is best for you. In that case, you can test different scenarios with different interest rates, amortization periods, and mortgage principal and find out what works best for your budget. Once you have enough information and are ready to discuss the details, you can apply to the bank and work with RBC Royal Bank's mortgage advisor to take a closer look at your loan prospects.

However, you must be aware that all mortgage calculators are for informational purposes only, and the results of the calculations have no legal effect as a real commitment from the lender to you.

How to use the RBC mortgage calculators?

RBC’s mortgage payment calculator asks you to adjust:

• mortgage amount;

• amortization period;

• payment frequency;

• interest type;

• interest term.

The home value estimator requires you to enter:

• your home address;

• type of residence place (detached house, semi-detached house, Row/Townhouse, Condo/Apartment);

• initial value of your home (there is a logical check which would notify you if you entered a price outside the average for the neighborhood);

• month and year when you purchased your home;

• information whether you are planning to renovate your property at the moment or not (if you do, you will be asked if you might need financing for this);

• optionally you can add past and planned renovations that impact the value of the real estate.

The Neighborhood Explorer starts your calculation with a series of questions:

• The zip code or address of the place where you want to live;

• type of dwelling you are looking for (detached house, semi-detached house/townhouse, condominium/apartment, any kind);

• minimum and maximum budget;

• three amenities that are important to you in your potential neighborhood (cafes, restaurants and bars, grocery stores, schools, transportation, highways, and parks). 

As a result, you will see a map with the neighborhoods based on your selection and your preliminary monthly mortgage payment, plus the value trend.

The “How Much Home Can I Afford?” calculator would ask you to enter the following data:

• income;

• expenses;

• Down payment. In some cases, the calculator would notify that based on the provided information estimated amount of mortgage and mortgage payments cannot be provided only upon consultation.

• When you view legal disclaimers, you can adjust the estimated amortization period, interest rate, property tax, and housing costs.

The “Rent or Buy” calculator would ask you to provide the following information:

• amount of rent per month (current or hypothetic but affordable one);

• interest rate;

• amortization period;

• Down payment. You will get three scenarios with different down payment amounts (5%, 10%, and 20%). Such calculators are like next-move tools for clients.

Mortgage Prepayment Charge Calculator would require you to answer a few questions:

• how much of your mortgage would you like to prepay (full or part);

• type of current mortgage (fixed, variable, ratecapper);

The next step is to provide some details about your mortgage:

• current mortgage balance;

• maturity date term;

• payment frequency (monthly, semi-monthly, bi-weekly, weekly, accelerated bi-weekly, accelerated weekly);

• regular payment amount;

• date of last regular payment;

• current interest rate;

• discount off posted interest rate.

As a result, you will receive the estimated amount of the prepayment fee and the amount of monthly interest which would be charged for mortgage prepayment.

“What Type of Mortgage is Right for Me?” calculator will ask you for some information about your plans on using the money:

• buy a home;

• renew existing RBC mortgage;

• refinance existing RBC mortgage;

• refinance an existing mortgage to RBC if a bank other than RBC Royal Bank of Canada provides the current mortgage.

The following steps are:

• providing information on what down payment amount is acceptable for you (below or higher than 20%);

• informing the bank whether you want to save on the mortgage as much as possible or want to take a risk with a variable interest rate. If you choose the variable option, you will have to indicate if you are interested in a mortgage offering security of fixed interest rate and potential savings of variable rate.

• The next thing is to indicate your short-term plans: whether you expect to pay over 10% of the original mortgage principal within the next year and whether you plan to move within the next 12 months.

The Credit Selector Tool would ask many questions to lead you through a wide range of credit products.

• First, you must choose the purpose of the money from the following offer:

• Purchase of property (you will have to enter the amount);

• Bulk purchase (you will be asked for the amount needed);

• Financing an education (in addition to the amount, you will also be asked what type of education it is: Undergraduate, Graduate, Vocational, Medical/Dental, Private School, etc.);

• Home renovation (including amount and one-time/multiple purchases);

• Vacation (and the amount needed for it should be indicated).

• Investments (amount and registered or unregistered type of investment);

• Purchase of a car (amount, new or used, if original MRSP is less than $90,000 and expected mileage is less than 24,000 km per year);

• Covering unexpected expenses (you must specify if it is a shortfall between your salaries or an unexpected purchase);

• Managing debts (only the amount needed).

• Next, you must indicate if you own a house and if you want to use it as collateral for your loan, and your offer for a lower interest rate.