RBC offers new mortgage option for Canadians
Rate cap feature protects homeowners from rising prime rates
TORONTO, April 29, 2010— One of the biggest
decisions facing Canadian homeowners is choosing between a
fixed or variable-rate mortgage. RBC has re-introduced a third
option, called RateCapper, which provides an alternative for
homeowners seeking the potential interest savings of a variable-rate
mortgage combined with the security of a fixed-rate mortgage.
With the RBC RateCapper mortgage, the interest rate over
the five-year term is based on the lower of Royal Bank of
Canada's prime rate, currently at 2.25 per cent, and a set
maximum rate, currently capped at 5.875 per cent.
"In today's rising rate environment, we have seen increased
demand for mortgage options that provide additional rate protection,"
said Marcia Moffat, vice-president, home equity financing,
RBC Royal Bank. "RateCapper gives homeowners the best
of both worlds - they can take advantage of a low prime rate,
while at the same time locking in a guarantee they will never
pay more than the 'capped rate' over the term of the mortgage,
no matter how much the prime rate may rise."
"Economic conditions are strong enough that we expect
the Bank of Canada to increase the overnight rate starting
mid-year," according to Paul Ferley, assistant chief
economist, RBC Economics. "The pace of increases should
be fairly steady through the remainder of 2010 and 2011, which
will influence the prime rate."
More about how a RateCapper mortgage can benefit Canadian
homeowners can be found at www.rbcroyalbank.com/ratecapper.
The RateCapper is just one of several innovative home financing
products and services offered by RBC. Canadians can visit
the mortgage centre www.rbc.com/mortgageadvice
for access to advice about all aspects of their homeownership
goals - whether they are renewing their mortgage, buying their
first home, planning their next move, renovating or managing
their current home financing.
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Media contact:
Matt Gierasimczuk, (416) 974-2124
All mortgage products are offered by Royal Bank of Canada
and are subject to its lending criteria for residential mortgages.
Offer may be changed, withdrawn or extended at any time without
notice. May not be combined with any other rate discounts,
offers or promotions.
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