Mortgage Options
Mortgages come with a variety of different features
and characteristics, giving you the flexibility to
customize your mortgage to suit your needs.
An RBC Mortgage Specialist will help you determine
the type of mortgage that works best for you. Here are
some of the options you will need to consider.
Amortization is the amount of time
needed to reduce the loan to $0. A conventional mortgage
is 25 years, but amortization can range anywhere from
five to 35 years. The shorter the amortization, the
higher your regular payments will be, but the less you’ll
pay in interest over the life of the loan. Generally,
amortization is several mortgage term periods.
The mortgage term is the period of
time that the mortgage agreement is in effect. These
typically run from six months to 10 years. At the end
of the term, you will either repay the full mortgage
amount, or renegotiate a new mortgage. Depending on
the length of your mortgage terms, you will likely go
through three or four different term periods in order
to amortize your mortgage fully.
You will need to decide whether you want an open
mortgage or a closed one.
An open mortgage lets you pay off some or all of the
mortgage at any time without penalty. With a closed
mortgage, the prepayment options are generally limited
to a certain percentage of the mortgage amount each
year, or increasing your payment amount up to a certain
limit.
With a variable-rate mortgage, the
interest rate changes as market interest rates change.
With a fixed-rate mortgage, the interest
rate is set for the length of the mortgage term. Variable
rates are generally lower than fixed-rates for a mortgage
of the same size and term, but if interest rates go
up, so will your interest cost. Fixed rates, while slightly
higher, offer security. Even if interest rates in general
rise, your mortgage rate is locked in for the length
of the term.
We also offer the innovative RateCapper® Mortgage
— a variable-rate mortgage that establishes a
maximum rate for the mortgage term, so if rates go above
that amount, you are protected.
You can also choose the payment frequency.
You can choose to make your mortgage payments monthly,
semi-monthly (twice a month), bi-weekly (every two weeks)
or weekly. Paying more frequently helps to reduce the
mortgage principal more quickly.
How to get started
An RBC Mortgage Specialist can answer any of your mortgage
questions, and can complete the pre-approval process
with you. You can find one through our Mortgage
Specialist Locator.
RBC Mortgage Specialists are mobile and will arrange
to meet with you wherever it’s most convenient
for you. If you feel more comfortable working in a language
other than English or French, specify that you would
like a RBC Mortgage Specialist who speaks your preferred
language.
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for the general guidance and benefit of our clients.
This website is for informational purposes only and is
not intended to provide specific advice. See
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