Find out how a better understanding of your mortgage amortization can benefit you!

Dian - Account Manager

In its simplest term, amortization is the period of time that it takes you to pay off your mortgage in its entirety. Typically, your average amortization period is 25 years. However, it all depends on your personal goals and objectives.

Choosing a longer amortization period gives you the convenience of having lower monthly payments. However, the longer your amortization, the more you will pay in interest costs.

Alternatively, a shorter amortization gives you the convenience of paying off your mortgage a lot earlier. However, your payments are going to be larger but you will save in interest expenses.

Even if you have to start with a longer amortization period so that it fits into your budget, you have the opportunity of changing your amortization period throughout the lifetime of your mortgage. We recommend that you review your amortization at your renewal time so that you can assess your current financial situation. If your situation has changed such as your salary has increased or your expenses have lessened, then shortening your amortization period may fit into your goals.

Here at RBC we'll help you explore your options and find the best possible solution for you.

 For more information, please visit the RBC Advice Centre!

Buying a home can be expensive as costs add up, find out what you’ll need to save up for.

Stephanie - Mobile Mortgage Specialist

Buying a home is one of the biggest investments you'll make in your life. And one of the things that you need to consider is the cost of closing the property. The closing costs are the list of costs that the lawyer presents to you at closing.

And it's really important that you know what they are because you don't want to be left with a surprise.

The main closing costs when you're closing a home include such things as land transfer tax, the legal fees and also there are taxes on the high ratio insurance premium that you may have to consider if you have put less than 20% down payment.

One of the main things that clients will not know up front are the adjustments. These are costs that the vendor has prepaid such as property taxes and the utilities.

When purchasing a newly constructed home from a builder, there are other costs to consider such as the new home warranty. And there are other costs built into the offer such as driveway paving or tree planting and these can vary from offer to offer and from builder to builder. It's very important to read the offer carefully so that you're not surprised when you're going to close the home and there are other costs that you haven't put into consideration.

For more information, please visit the RBC Advice Centre!

Life is expensive; here are some tips to achieving financial balance!

Kamran - Sr. Account Manager

The lifestyle you have today can have an impact on your tomorrow. What are your personal priorities? What makes you happy? Do you manage your money to allow you to go out for dinner once a week, buy a new car every few years, or take that Caribbean get away every year?

It is important to find a balance. Think about where you want to be 2, 3 maybe 5 years from now? Will you have the financial means to get there?

Consider your purchasing and borrowing ability - manage your credit today so you have the financing available to help meet your dreams of tomorrow, for example being able to get a mortgage to buy a home.

Take some time to identify what your goals are and rank them as to what is most important to you. This can help you get a clear financial picture of what you need to focus on. Take one goal at a time, establish a timeline and the dollar value required to meet that goal.

It is important to manage credit responsibly now. It is the key to your future ability to access funds. If your borrowing has gotten out of hand, come in and see us at any of our branches and we will help establish a plan to manage debt now and plan for the future.

For more information visit the RBC Advice Centre.