RBC Mortgage Features

RBC offers extra features designed to suit your financial situation, whether you need to relieve financial stress or want to pay down your mortgage sooner without any penalties. These features include:

• RBC Double-Up Payments:
  This is a form of mortgage “pre-payment” and one of the easiest ways to pay down your mortgage faster. You choose how much you can afford in to pay in addition to your normal mortgage payments ranging from a minimum of $100 up to matching the full amount of your mortgage payment. When you double up on payments, the amount added helps pay down the principal. This not only help you become mortgage free sooner but also can save tens of thousands of dollars in interest over the duration of your mortgage.
• RBC Annual Mortgage Prepayment:
  In this case, you can prepay up to 10% of the original principal amount once a year. These prepayments also go towards the principal. As a result, more of your money goes towards the cost of your home, as opposed to the interest that goes to the bank. Over time you save money and also become mortgage free sooner.
• RBC Skip A Payment:
  This is a real lifesaver when you are short on cash or need a break on your mortgage so you have money to go towards unexpected expenses. The bank allows you to skip your month’s worth of payments once a year. You can skip either four consecutive weekly payments, two consecutive bi-weekly payments, or a single monthly payment depending on your mortgage payment schedule. However, this option does impact how long it takes you to pay down your mortgage. So it’s important to keep in mind that when you do this, the interest missed automatically gets added to your principal. This costs you more money in the long wrong. Remember, interest goes to the bank, while the principal goes directly to the cost of your home.
• RBC HomeProtector Insurance:
  Mortgage protection insurance is a good idea as it covers your mortgage for various unexpected issues including, disability, long-term illness and death. The premiums don’t increase throughout the life of your mortgage but do add to your mortgage payments. It is optional and does provide peace of mind, but as an add-on, you want to calculate whether you can afford it. Premiums are based on your age, who is covered, and how much coverage you need. Premiums are calculated based on every $1000 of your initial mortgage balance.
• Monthly Property Tax Payments:
  Paying your property tax with your mortgage is always easier, as the bank pays your property taxes on your behalf. It’s one less thing to worry about. In some cases, it is required you pay the tax with your mortgage, and in others, you have the option to do so.