Why Get a Mortgage Preapproval?

f you're serious about purchasing a home, getting a pre-approval that actually puts your mind at ease because then you know exactly what you're working with. A lot of us, when you're looking to buy a house, have an idea of that ideal home, the white picket fence, the big backyard, the swimming pool potentially. But can we actually afford that home?

Getting pre-approved will set your benchmark or your price range, so you're not wasting your time and you're not getting disappointed down the road when you see the house of your dreams and find out after the fact that you can't afford it.

Sitting with an RBC mobile mortgage specialist will give you that peace of mind and the confidence when going in to purchasing a home, you'll know exactly what the process is and exactly what's expected of you so that you end up with the house of your dreams and the mortgage to finance it.

They can help you walk through the entire process from the down payment to all the other expenses that come up with home buying like land transfer tax, lawyer fees if there's real estate commission, to the mortgage payments, whether they're monthly, biweekly, the benefits of picking a certain payment schedule and then once you've signed that purchase agreement what the next step is.

Coming in to get a pre-approval is a no-cost, no-obligation process. What it does do is provide you with information and ease your mind so that you have confidence when you're looking to buy that home.

Read more at the RBC Advice Centre.

Looking for ways to save on your mortgage? Take a closer look at the advantages of a variable rate mortgage

With an RBC Royal Bank® variable rate mortgage, your payment amount stays fixed for the term; however, the interest rate will fluctuate with any changes in the RBC® prime interest rate1.

This means that your monthly mortgage payments will remain the same, but if our prime rate goes down, more of your payment will go toward your principal. And if our prime rate goes up, more of the payment will go toward the interest.

The variable rate advantage
Examining Canadian mortgage rate data from 1950 to 2007, Dr. Moshe Milevsky, Associate Professor of Finance at York University, found:
> Choosing a variable rate mortgage would have saved Canadians $20,000 in interest payments over 15 years (based on a $100,000 mortgage)
> Canadians would have been better off borrowing at a prime rate (variable) compared to a five-year fixed rate 89% of the time.

As you can see, a variable rate mortgage offers the possibility of greater long-term interest savings.

Read this complete article at the RBC Advice Centre.

Concerned about mortgage interest rates? Consider the security of a fixed rate mortgage

Your home is one of the most exciting and important investments you’ll ever make. Don’t let mortgage interest rate concerns get in the way. Instead, put your mind at ease with the security of a fixed rate mortgage.

Security that’s locked in
As the name implies, a fixed rate mortgage offers a specific interest rate that is fixed or locked in for the term
of the mortgage. It means you’ll know exactly what to expect, including:
> The interest rate of your mortgage
> The amount of your regular mortgage payments
> The portion of your payment that goes toward principal and interest
> The amortization of your mortgage (or how long it will take to pay off)
And the longer you are locked in, the more you’ll be protected from potential interest rate increases over the term of your mortgage.

Read the rest of this article at the RBC Advice Centre and found out if a Fixed Rate Mortgage is right for you.

Fixed rate, variable rate or both: How to choose the right type of mortgage rate for you

Whether you are acquiring, renewing or refinancing your mortgage, one of the biggest decisions you face as a homeowner is choosing between a fixed or variable rate mortgage.


Choosing between a fixed or variable rate mortgage is not a simple decision, which is why many people are looking for advice to help them decide which mortgage interest type is best for them based on their personal circumstances.

You can choose to go with a stable, fixed rate mortgage. Or, you may feel more comfortable with the risks and potential rewards of a variable rate mortgage. For the “best of both worlds,” you might decide on a mortgage that combines both interest types. It really depends on your tolerance for risk, as well as your current goals and the life stage you are in.

CLICK HERE to read the article at the RBC Centre and get information about each option to help you make the right choice.

Longer or shorter? Your amortization affects how much your mortgage really costs.

Choosing the length of your amortization period, which means the number of years you will need to pay the full balance of your mortgage, is an important decision that can affect how much interest you pay over the life of your mortgage.

Historically, the banking industry’s standard amortization period has been 25 years, a standard that still applies today. It is the benchmark that is used by most lenders when discussing mortgage offers. However, shorter or longer time frames are available.

CLICK HERE to visit RBC and read the whole article to find out the differences between a longer amortization and a shorter amortization so you can choose which one is better for you.

8 common mistakes most first-time homebuyers make and how to avoid them

Becoming a homebuyer and applying for a mortgage can seem overwhelming, especially if it’s your first time. With the help of one of our expert and dedicated mobile mortgage specialists, it can be easy. They’ll meet with you any time to guide you through the process and help you find the best mortgage for your specific needs.

To help you feel more confident and prepared for becoming a first-time homeowner, we’ve put together a list of eight of the most common pitfalls, which our mobile mortgage specialists can help you avoid.

1. Thinking you won’t qualify for a mortgage
2. Not knowing all the down payment choices

3. Focusing too much on the interest rate, rather than the overall solution
4. Being unrealistic about how much you can afford to pay for your home
5. Not considering a mortgage pre-approval
6. Not choosing your own mortgage payments schedule
7. Forgetting about closing costs
8. Not knowing your credit rating

To read the whole article visit the RBC Mortgage Centre!