Current Discount RBC Mortgage Rates
Periodic Interest Rate APR 1 year (closed), fixed 6.59% 6.72% 2 year (closed), fixed 6.19% 6.25% 3 year (closed), fixed 5.29% 5.33% 4 year (closed), fixed 5.19% 5.22% 5 year (closed), fixed 5.14% 5.17% 7 year (closed), fixed 5.90% 5.92% 5 year (closed), variable 6.49% 6.52%
The table is updated every weekday using data published on the Royal Bank of Canada's website.
Currently published RBC mortgage rates
Periodic Interest Rate APR 1 year (closed), fixed 7.84% 7.97% 2 year (closed), fixed 7.44% 7.50% 3 year (closed), fixed 6.95% 6.99% 4 year (closed), fixed 6.74% 6.77% 5 year (closed), fixed 6.79% 6.82% 7 year (closed), fixed 7.05% 7.07% 5 year (closed), variable 6.95% 6.98%
The table is updated every weekday using data published on the Royal Bank of Canada's website.
RBC Prime Rate
RBC's prime interest rate is currently 6.95%.
The RBC Prime Rate serves as the benchmark for variable-rate lending products such as mortgages, credit cards, lines of credit, etc. When the Bank of Canada adjusts the overnight interest rate, the RBC Prime Rate also increases or decreases by the same amount, affecting the borrowing costs of these products.
Other lenders' interest rates
Once you've found RBC's mortgage rates, the next step is to compare them with rates from other major lenders. Below you can see the interest rates Canada's six largest banks charge for Canada's most popular fixed-rate and adjustable-rate mortgage terms.
The top six Canadian banks offer the highest interest rates
Price update date: June 29, 2024
Posted interest rates for closed mortgages with maturities of less than 25 years. Data source: Major Canadian banks
To get a full picture of other mortgage rates available, you might also want to take a look at:
If you're a long-time RBC customer, you'll probably feel most comfortable dealing with the bank for your future mortgage needs – and that's perfectly reasonable – but comparing mortgage rates, terms and conditions between lenders can help you get the best deal on a product that's right for your unique mortgage needs.
If you're not confident about making these comparisons on your own, consider speaking to a mortgage broker, who can handle this step for you and may be able to negotiate a lower interest rate.
Does RBC offer the best mortgage rates?
Our handy mortgage rate chart shows mortgage rates currently available from alternative lenders and other Big 6 banks. How do RBC's rates compare to competitors?
Compare mortgage rates
Overview of RBC
Founded in 1869 as the Halifax Merchants Bank, Royal Bank of Canada (RBC) is one of Canada's six largest banks and one of the most prominent mortgage lenders. RBC's mortgage portfolio was $356 billion in the second quarter of 2023.
RBC Mortgage Products
RBC offers a variety of mortgage products, including fixed and adjustable rate loans that can be structured as open or closed, as well as the following products:
RBC Home Loans: Things to Consider
Listing and special rates
Large lenders like RBC may offer two types of current mortgage rates: a published rate and a special or discounted rate.
RBC announces mortgage rates
Published rates are the interest rates published by RBC. Published rates are set higher than discounted rates in the hope that borrowers will negotiate lower rates.
There are many theories as to why this is happening at large lenders: Some lending experts believe it's because borrowers feel good about getting better terms, while others say offering higher interest rates allows banks to impose stiffer penalties if borrowers breach their mortgage agreements.
If you're presented with an advertised rate the first time you walk into an RBC branch, consider it the start of your negotiations — and a great reason to compare offers from other lenders.
RBC Special Rates
Special rates are RBC's published rates that are already discounted. They may be limited-time offers or they may be rates that the bank offers to its mortgage broker partners. In most cases, special rates will be close to the actual rate you'll be quoted.
Even if you are offered a special mortgage rate with RBC, don't be afraid to negotiate to lower your rate.
Fixed and adjustable rate mortgages
When you get a mortgage from a lender like RBC, you have to make an important choice: whether to get a fixed or variable rate.
Fixed Mortgage Rates
With a fixed-rate mortgage, your interest rate will remain the same for the life of your mortgage. For example, if RBC offers you a five-year fixed-rate mortgage at 5.25% in 2023, your interest rate will remain the same until you renew your mortgage in 2028.
Fixed-rate mortgages allow you to predictably budget your monthly mortgage payments for years to come. But if fixed rates fall during the life of your mortgage, the only way to take advantage of them is to get out of your mortgage and refinance at a lower rate, which could result in significant mortgage prepayment penalties.
Variable Mortgage Rates
If you choose an RBC mortgage variable rate, your interest rate may go up and down multiple times over the term. When interest rates go up, more of your monthly mortgage payment goes towards interest, and when interest rates go down, more goes towards principal.
Variable mortgage rates are generally lower than fixed rates. But during times of high inflation, rising lenders' prime rates can push variable rates higher, putting unexpected pressure on your finances.
For example, from March 2022 to July 2023, interest rates for homeowners with adjustable-rate mortgages increased by 475 basis points. (1 percent equals 100 basis points.) That means a borrower who secured a 2.25 percent adjustable rate in January 2022 will be paying 7 percent in July 2023. While this isn't a common occurrence, it highlights the risks of taking out an adjustable-rate mortgage during economically uncertain times.
Open and Closed Mortgages
Another thing to consider when getting a mortgage with RBC is whether to choose an open or closed mortgage.
An open mortgage allows you to increase your mortgage payment or pay off your mortgage in full at any time without penalty, whereas a closed mortgage places annual limits on the amount you can prepay on your mortgage.
The choice between an open mortgage and a closed mortgage often comes down to cost. Interest rates on open mortgages tend to be much higher.
Convertible Mortgage
If you're not sure whether an open or closed mortgage is the best choice, you could also consider a convertible mortgage, which allows you to change your mortgage type during the term of the agreement. For example, you could start with a closed mortgage and then change to an open mortgage, or start with a shorter term, such as six months, and then change to a longer term.
Convertible mortgages tend to have lower interest rates than open mortgages.
Interest Rates and APRs
When researching RBC mortgage rates or comparing them with other lenders' rates, it's best to use the annual percentage rate (APR) offered rather than the interest rate itself.
The APR includes other fees that may be added to the cost of your mortgage, giving you a more accurate figure for calculating your potential mortgage costs.
How to get the best mortgage rates at RBC
As one of Canada's federally regulated A lenders, RBC adheres to strict national lending guidelines, which means that to get the best mortgage rates, you may have to:
Increase your credit score. A high credit score lets lenders know you pay your debts on time. On the other hand, a low credit score can mean you are a higher credit risk and offer you a higher interest rate. If your credit score is quite low, you may not be approved for a mortgage with RBC. Instead, you may need to apply to one of Canada's many B-tier lenders. Increase your down payment. If you can make a large down payment that goes well beyond the Canadian minimum down payment guidelines, lenders may see you as prioritizing homeownership, but they will definitely be able to lend you less. Either interpretation means you are less risky to lenders, which could result in a lower mortgage interest rate. Lower your debt service ratio. If you have a high debt service ratio, lenders know that you are already putting a lot of your income towards debt service. This is riskier for lenders, and the greater your risk as a borrower, the higher the interest rate you will be offered. Shop around. Your regular bank may not be the one to offer you the best mortgage rates. Looking at the interest rates other lenders are charging is one way to find out which lender's offer suits your financial situation. Negotiate: Don't be afraid to ask the lender if they can give you a lower interest rate than they've quoted you. If they won't budge, let them know you'll look at other lenders' offers before making a final decision.
Get pre-approved for a mortgage with RBC
Getting pre-approved for a mortgage is an important step in the home buying process. A pre-approval tells you how much a lender is willing to loan you at a certain interest rate. It establishes your home buying budget and tells the homeowner that your offer is legitimate if it falls within the pre-approval range.
The RBC mortgage pre-approval process requires you to submit all the documents the bank requests to evaluate your financial situation, including:
Bank information to verify your assets and down payment savings. Employment certificate. Pay stubs to prove your income. Information about any debts you have.
RBC's mortgage pre-approval process also includes a hard credit inquiry, which allows the bank to evaluate your credit score and review your credit history. A hard inquiry may temporarily lower your credit score.
How to Get Started with Mortgage Pre-Approval with RBC
You can start the pre-approval process online or in person at an RBC branch. Because pre-approval is thorough and actionable, plan to set aside time to discuss the results with the bank's mortgage advisor. Ideally, the advisor will give you some options.
What else should I know about RBC pre-approvals?
As you consider these options, be sure to understand the fees, terms, and conditions associated with each mortgage offer, including prepayment benefits (and prepayment penalties). Having these factors clear during pre-approval will make the next step (formal mortgage application after you've made a successful bid on a home) go more smoothly.
Mortgage pre-approval is free and non-binding. Being pre-approved with RBC doesn't mean you can't get a mortgage with another lender. However, if you change your mind after being pre-approved with RBC, you'll have to go through the pre-approval process again.
RBC's prime rate is currently 6.95%, and this rate determines the interest the bank charges on adjustable-rate mortgages, lines of credit and certain credit cards.
You can and should negotiate your mortgage interest rate with RBC. When you first apply for a mortgage, lenders may not offer you the lowest possible interest rate, so it's a good idea to always ask for a lower interest rate. Even if you're only able to reduce your mortgage costs by a small amount, the money you save can be put to better use.
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