Royal Bank of Canada (RBC) is Canada's largest bank by total assets and market capitalization, consistently ranking among the ten largest banks globally. With over 1,200 branches, 4,600 ATMs, and more than 17 million clients across Canada, RBC is the country's most recognized financial institution. For mortgage borrowers, this translates into an unmatched branch and mortgage specialist network, with dedicated home advisors available in every major market and most smaller communities.
RBC's flagship mortgage product is the RBC Homeline Plan, a readvanceable product that combines a traditional amortizing mortgage with the RBC Home Equity Line of Credit (HELOC). As principal is paid down, borrowers gain access to a revolving HELOC at the prime-based rate, which can be drawn and repaid as needed. RBC also offers stand-alone fixed and variable-rate mortgages for borrowers who prefer a simpler product without the revolving credit component.
RBC has invested significantly in digital mortgage tools, including the MyAdvisor platform, which provides real-time financial planning and mortgage scenario modelling. Their mobile app allows borrowers to manage payments, make lump-sum contributions, and access mortgage documents. RBC participates fully in federal housing initiatives including the First Home Savings Account (FHSA), First-Time Home Buyer Incentive (FTHBI), and the Home Buyers' Plan (HBP) through RRSPs.
RBC calculates the IRD by comparing your contracted mortgage rate against their current posted rate for the term matching your remaining period, then subtracting the discount you originally received. This is sometimes called the "posted-rate discount" method and has drawn criticism from consumer advocates because RBC's posted rates are substantially higher than their actual lending rates. The resulting IRD can be many times larger than a straightforward three-month interest calculation. As an illustrative example, breaking a $600,000 RBC 5-year fixed mortgage with 2.5 years remaining can generate a penalty in the range of $18,000–$30,000. Variable-rate mortgages only carry a three-month interest penalty, making them far less costly to exit.
The RBC Homeline Plan is a readvanceable mortgage product that automatically makes HELOC room available as you pay down your mortgage principal. For example, if you started with a $500,000 mortgage and have paid down $75,000 in principal, you would have up to $75,000 of available HELOC credit in addition to your remaining mortgage balance. The HELOC is accessed at RBC's prime-plus rate and can be drawn and repaid as a revolving credit line. The product is registered as a collateral charge and requires a minimum 20% home equity to qualify.
Yes, RBC offers mortgage products for self-employed Canadians. RBC's self-employed mortgage program allows qualifying borrowers to use their business income (net or gross, depending on the documentation provided) to qualify for a mortgage. Borrowers with two or more years of self-employment history and robust documentation (T1 Generals, NOAs, financial statements) typically qualify under standard guidelines. For borrowers with less documentation history, RBC may offer an insured self-employed program through CMHC or Sagen, which accepts a higher GDS/TDS ratio in exchange for mortgage insurance premiums.
RBC's 20/20 prepayment privileges are among the strongest offered by any Big Six bank and are comparable to what mono-lenders like First National offer. Borrowers can increase their regular payment by up to 20% annually and make lump-sum payments of up to 20% of the original mortgage balance once per calendar year, penalty-free. By comparison, TD offers 15/15 and Scotiabank also offers 15/15 on standard products. If maximized, RBC's 20/20 privileges can significantly reduce your amortization period and total interest paid.
Have a specific question about RBC Royal Bank rates, products, or eligibility? A licensed broker will review your question and be in touch.