Mortgage add-on (home equity loan)

You may be planning to undertake a major renovation to improve the appearance, comfort or resale value of your home. You may want to take advantage of a home equity loan to:

• make a substantial investment
• make an important purchase
• commit to your children's education
• consolidate higher interest rate debt

When you use RBC Royal Bank's mortgage add-on option, your home's equity provides you and your family with comfort, security and enjoyment while enabling you to access extra cash when you need it.

This convenient mortgage option lets you access additional funds by simply adding them on to your existing RBC Royal Bank mortgage, based on the current appraised value of your home.

Here's an example of how a mortgage add-on option works. (Default insurance premiums may apply.)

Let's say the current value of your property is:	$130,000
80% of the current appraised value of your home would be:	$104,000
Now subtract the present balance of your mortgage, which will mature in 3 years. You would also subtract any other liens against the property, but in this example the mortgage is the only debt:	$40,000
With this example you could borrow up to:	$64,000

If you were to borrow the additional $64,000 with the add-on option, your existing mortgage rate would be blended with the current rate for a 3-year term mortgage, and your monthly payments would be adjusted to reflect the new amounts of principal and interest.

You can apply to add on up to your original mortgage amount with minimal costs. Your mortgage specialist would be happy to explain this in detail to you.

Built-In Add-On

RBC Royal Bank mortgages advanced after April 15, 1996 automatically include this money-saving feature, allowing you to avoid the legal costs usually associated with adding onto your mortgage.

As long as your mortgage balance never exceeds your original mortgage amount, you can use the built-in add-on option to add onto your balance as many times as you choose.

The built-in add-on option is identical in every other respect to the mortgage add-on option, and still requires an up-to-date property appraisal to determine how much equity you have available to borrow against. For Quebec, this feature is only available if the application is approved and the advance of additional funds is made on or before July 31, 2019.