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Residents
- At RBC, as a resident, you can obtain a mortgage for the purpose of purchasing an owner occupied residential property, including: townhouses and condominiums.
- Up to 80% financing is available (as Mortgage Indemnity Insurance is available for amounts in excess of 80%); therefore a minimum down payment of 20% is required.
- Amortized monthly payments of principal and interest can be granted for up to 30 years (maximum term and age of client not to exceed government age of retirement). Options include weekly, bi-weekly and monthly payments.
Purchase of Residential Lots
- At RBC you can obtain a mortgage to purchase residential lots in government approved subdivisions for the purpose of eventually constructing an owner occupied home.
- Financing is available for up to 80% (with Mortgage Indemnity Insurance), therefore a minimum down payment of 20% is required.
- Amortized monthly payments of principal and interest can be granted for up to 15 years (maximum term and age of client not to exceed government age of retirement).
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- RBC offers financing to build or undertake major renovations for owner occupied residential property.
- This type of mortgage is set up as an interest only facility during the stages of construction.
- During the period of construction (maximum of 1 yr), the client can draw down balances in pre-determined phases as needed up to the approved limit. Upon completion, the final amount will be converted to a residential property mortgage with a monthly blended installment of principal and interest.
- Amortized monthly payments of principal and interest can be granted for up to 30 years (maximum term and age of client not to exceed government age of retirement). Options include weekly, bi-weekly and monthly payments.
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- At RBC you can utilize the equity that has been built up in your property for your goals including: Home Improvements, Debt Consolidation, Investments, Educational or Medical expenses with the supporting collateral being a mortgage over the property.
- RBC financing is available for up to 80% of the value of the property.
- Amortized monthly payments of principal and interest can be granted for up to 30 years (maximum term and age of client not to exceed government age of retirement). Options include weekly, bi-weekly and monthly payments.
Example:
Assume you have a property with an original valuation of $500,000 in 2007. Existing mortgage facility is $400,000 @ 10% for 20 years, original down payment was $100,000 Mortgage balance is $360,000 in 2012
Scenario 1:
What is the available equity in 2012 that can be utilized assuming the original value of the property remains the same?
Answer:
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Maintains current market value of $500,000. |
With standard 80% |
[80% * $500,000] - $360,000 = $40,000 |
Scenario 2:
If in 2012 the property has increased in value to $560,000, what is the new available equity?
Answer:
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Appreciates to $560,000 |
With standard 80% |
[80% * $560,000] - $360,000 = $88,000 |
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- At RBC, you can obtain a mortgage to finance the purchase of a non owner occupied residential property for investment purposes ,to build or undertake major renovations or to refinance a mortgage on a non owner occupied property.
- Up to a maximum 66.7% financing is available; therefore a minimum down payment of 33.3% is required.
- Amortized monthly payments of principal and interest can be granted for up to 20 years (maximum term and age of client not to exceed government age of retirement).
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Purchase of residential property and residential land:
Collateral:
- Assignment of life insurance policy for an amount not less than the mortgage amount
- Assignment of Home Owner's Insurance cover over the property
- Registered first mortgage of a continuing nature over property being financed
Documents:
- Agreement of Sale
- Deed for property
- Valuation Report (to be requested by our Mortgage Specialist)
- Bank reference
- Employment Letter
- Two forms of picture ID
- Proof of current address
Construction/Renovation:
Collateral:
- Assignment of Home Owner's Insurance cover over the property
- Registered first mortgage of a continuing nature over property under construction
Documents:
- Copy of Builder's/Contractor's estimate
- Approved building plans and copy of site plan
- Quantity surveyor’s report
- Land and building tax receipt
For further details please refer to the following:
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FAQs
For what purpose can I apply for mortgage financing?
You can apply for mortgage financing for any of the following purposes:
- Purchase of your new home
- Purchase of residential land
- Construction of your home
- Home renovation
- Consolidation of debts
- Investments
- Education
- Medical expenses
What are the basic requirements for obtaining mortgage financing?
- Minimum age: 18 years
- Gainfully employed (salaried / self employed)
- Good credit history
- Total loan / rent payments, inclusive of the proposed mortgage, should not to exceed 45% of your gross income
- The loan must be repaid by government age of retirement, however special conditions apply
What are some of the basic documents required?
- 2 valid forms of identification
- Current job letter & most recent pay slips / audited financial statements, for the last three (3) years supported by income tax assessment notices (if self – employed)
How long does the entire process take?
Just call us or come in to discuss your request, and receive conditional pre-qualification. Upon submission of all the required documents you will receive final approval and issuance of the Letter of Offer. We will request the necessary searches to be done through our Attorneys after which the deed will be signed and funds disbursed.
It’s that simple! You own your home!
What are the benefits of mortgage financing?
- Facilitates acquisition of a home where you would otherwise have to utilize savings
- Homes typically increase in value over time, building valuable equity for the homeowner which will result in significant benefits including:
- The equity will typically provide homeowners with a net profit on the sale of their homes
- Homeowners can increase borrowing power by utilizing equity to finance key needs such as education, home improvement projects or for major purchases, emergencies or investment property
Can I apply for a mortgage with another person?
Yes. You may enter a mortgage as an individual or with one or more persons. However, in cases where the mortgage over a couple’s matrimonial home is to be taken, both parties must be joint on the loan.
Can I make lump sum payments towards my mortgage loan?
Yes lump sum payments can be made towards RBC Mortgage loans.
Type of Payment
|
Description
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Partial Prepayment
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One (1) annual lump sum payment of up to 20% of the original Loan Amount is permitted. Any partial prepayment in excess of 20% will attract an additional payment of six (6) months interest.
All prepayments must be made on a regular payment date.
|
How can I pay less interest to the bank over the period of the mortgage?
Making lump sum payments to the mortgage, and specifying that the funds are to be applied to the principal, will reduce the term of the loan. Early re-payment will reduce the amount of interest paid to the bank.
Example:
Mortgage Features
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Standard Mortgage Financing Option
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Early Pre-payment Option
|
Mortgage financing amt.
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$900,000
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$900,000
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Tenor
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25 years
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25 years
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Monthly Payments
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$5,937
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$5,937
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Annual lump sum payments made
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$0.00
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$10,000
|
Total number of monthly payments
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300
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229
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Total interest paid
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$881,107.32
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$646,631.94
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Total interest savings
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$0.00
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$234,475.38
|
|
|
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- Double-Up your mortgage payment on any or every payment date
- Increase your mortgage payment up to 20% once every 12 months
Make bi-weekly accelerated payments instead of monthly payments. It's like making one extra mortgage payment per year, which can save you substantial interest over the lifetime of your mortgage.
Are there penalties for early liquidation of my mortgage loan?
Yes. If you wish to prepay an amount in excess of 20% of the original loan amount or make more than one lump-sum payment over the course of 12 months, you will incur a prepayment charge equal to six (6) months interest. You will also be required to contact your mortgage officer to inform of your intent to settle the loan prior to the payment date.
Even if you have not yet made that final decision on your dream home, come in or call one of our friendly and professional Account Managers, and we can advise you on the amount that you will qualify for, or the steps you need to make the move towards owning your home.
What types of insurance are available when it comes to mortgage financing?
- Mortgage Indemnity Insurance - financing is available for up to 95% of the appraisal or purchase price, whichever is lower. If the loan amount exceeds 80% of the property value/purchase price mortgage indemnity insurance is required. This is a one time purchase to cover the difference between the 80% and 95%.
- Homeowners comprehensive policy is mandatory to cover your investment in the property in event of a loss.
- Life Insurance is highly recommended to protect your family's interest in their home.
- Contractors All Risk Policy (Construction) - to cover risks during construction.
- Even if you have not yet made that final decision on your dream home, come in or call one of our friendly and professional Account Managers, and we can advise you on the amount that you will qualify for, or the steps you need to make the move towards owning your home.
Where do I go to apply for a mortgage?
Call our Mortgage Specialists at 345-949-4600 or 345-949-6836 and we will meet you at your convenience