Current discounted RBC mortgage rates
| Term | Rate | APR |
|---|---|---|
| 6-month (convertible), fixed | N/A | N/A |
| 6-month (open), fixed | N/A | N/A |
| 1-year (open), fixed | N/A | N/A |
| 1-year (closed), fixed | 7.29% | 7.42% |
| 2-year (closed), fixed | 6.89% | 6.95% |
| 3-year (closed), fixed | 6.50% | 6.54% |
| 4-year (closed, fixed | 6.29% | 6.32% |
| 5-year (closed), fixed | 6.29% | 6.32% |
| 7-year (closed), fixed | 6.50% | 6.52% |
| 10-year (closed), fixed | N/A | N/A |
| 25-year (closed), fixed | N/A | N/A |
| 5-year (open), variable | N/A | N/A |
| 5-year (closed), variable | RBC Prime Rate – 0.150% (7.050%) | 7.08% |
This table is updated daily on weekdays using data available on the Royal Bank of Canada’s website. Any rate not listed on the bank’s website is represented with “N/A”.
Current posted RBC mortgage rates
| Term | Rate | APR |
|---|---|---|
| 1-year (closed), fixed | 7.89% | 8.02% |
| 2-year (closed), fixed | 7.49% | 7.55% |
| 3-year (closed), fixed | 7.10% | 7.14% |
| 4-year (closed), fixed | 6.89% | 6.93% |
| 5-year (closed), fixed | 6.94% | 6.97% |
| 7-year (closed), fixed | 7.10% | 7.12% |
| 5-year (closed), variable | RBC Prime Rate + 0.000% | 7.23% |
This table is updated daily on weekdays using data available on the Royal Bank of Canada’s website. Any rate not listed on the bank’s website is represented with “N/A”.
Does RBC offer the best mortgage rates?
Our handy mortgage rate tables show the current mortgage rates available at alternative lenders and other Big Six banks. How do RBC’s rates stack up against the competition?
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RBC at a glance
First incorporated in 1869 as the Merchants’ Bank of Halifax, the Royal Bank of Canada (RBC) is one of the country’s Big Six banks and one of its most prominent mortgage lenders. In the second quarter of 2023, RBC’s mortgage portfolio was $356 billion.
RBC mortgage products
In addition to providing a variety of mortgage products, including fixed- and variable-rate loans that can be structured as either open or closed, RBC also offers:
- Home equity lines of credit.
- Home renovation loans.
- Mortgages for second homes and investment properties.
- Mortgage refinances.
- Mortgage renewals.
RBC mortgages: Things to consider
Posted rates vs. special rates
Large lenders like RBC might provide two sets of current mortgage rates: posted rates and special, or discounted rates.
RBC posted mortgage rates
Posted rates are the rates RBC makes available publicly. They are higher than its discounted rates, with the expectation that borrowers will negotiate them down.
There are various theories around why this is the case at major lenders. Some lending experts believe it’s to make borrowers feel a sense of satisfaction at getting a better deal, others wonder if a higher posted rate allows banks to charge stiffer penalties if a person breaks their mortgage contract.
If you’re offered a posted rate when you first walk into an RBC branch, consider it the beginning of a negotiation — and a great reason to compare offers from other lenders.
RBC special rates
Special rates are RBC’s posted rates that have already been discounted. These might be limited-time offers or the rates a bank offers its mortgage broker partners. Under most circumstances, a special rate will be more in line with the rate you’re actually offered.
Even if you’re offered a special mortgage rate at RBC, don’t be afraid to try and negotiate a lower one.
Fixed vs. variable mortgage rates
When you get a mortgage from a lender like RBC, you’ll have to make an important choice between getting a fixed or variable mortgage rate.
Fixed mortgage rates
With a fixed-rate mortgage, your interest rate will remain the same for the duration of your mortgage term. If RBC offers you a 5.25% five-year fixed-rate mortgage in 2023, for example, your rate won’t change until it’s time to renew your mortgage in 2028.
A fixed mortgage interest rate allows you to budget around a predictable monthly mortgage payment for years at a time. But if fixed rates fall during your mortgage term, the only way to take advantage is by breaking your mortgage contract and refinancing at a lower rate. Doing so can trigger serious mortgage prepayment penalties.
Variable mortgage rates
If you opt for a variable rate on your RBC mortgage, the rate could rise or fall many times during your term. When it rises, more of your monthly mortgage payment will go toward interest; when it falls, more will go toward the principal.
Variable mortgage rates have generally been lower than fixed rates. But in times of high inflation, when variable rates are driven upward by increases to lenders’ prime rates, variable rates can put unexpected pressure on your finances.
From March 2022 to July 2023, for example, homeowners with variable-rate mortgages saw their rates increase 475 basis points. (One percent is equal to 100 basis points.) That means a borrower who secured a variable rate of 2.25% in January of 2022 would be paying 7% in July 2023. That’s not a common occurrence, but it highlights the risk of taking out a variable-rate mortgage during times of economic uncertainty.
Prime rate
RBC’s prime rate is the basis for its variable-rate lending products, like mortgages and lines of credit. When the Bank of Canada adjusts its overnight rate, RBC’s prime rate will increase or decrease by the same amount, affecting the cost of borrowing for these products.
RBC’s current prime rate is 7.2%.
Open vs. closed mortgages
Another consideration when getting a mortgage at RBC is whether to choose an open or closed mortgage.
With an open mortgage, you can increase your mortgage payments or even pay your mortgage in full at any time without penalty. A closed mortgage will impose annual limits on how much you can prepay your mortgage.
Choosing between open and closed mortgages is often a matter of cost. Open mortgages tend to come with much higher interest rates.
Convertible mortgages
If you’re unsure whether an open or closed mortgage is the best choice, you can also consider a convertible mortgage, which allows you to change mortgage type during your term. For example, you could start off with a closed mortgage and then convert it into a open mortgage, or you could start with a shorter term, like six months, and have the option of converting it to a longer-term
Convertible mortgages tend to offer lower rates than open mortgages.
Rate vs. APR
When investigating RBC mortgage rates or comparing them to the rates of other lenders, it’s best to use the annual percentage rate (APR) provided rather than the interest rate itself.
APR includes any other fees that might be added to the cost of your mortgage, and gives you a more accurate figure with which to calculate your potential mortgage costs.
Other lenders’ rates
Once you’ve taken a look at RBC mortgage rates, the next step will be to compare them to what’s on offer at other major lenders. You can see the rates Canada’s Big Six banks charge on some of Canada’s most popular fixed- and variable-rate mortgage terms below.
| Lender | 3-year fixed rate | 5-year fixed rate | 5-year variable rate (closed) | 5-year variable rate (open) | Prime rate |
|---|---|---|---|---|---|
| TD Bank | 6.94% | 6.84% | 6.97% | 8.37% | 7.35% |
| BMO | 7.08% | 6.91% | 7.22% | N/A | 7.20% |
| RBC | 7.14% | 6.97% | 7.23% | 10.53% | 7.20% |
| Scotiabank | 7.04% | 6.84% | 7.65% | 10.40% | 7.20% |
| CIBC | 6.94% | 6.79% | 7.20% | 10.50% | 7.20% |
| National Bank of Canada | 7.09% | 6.88% | 7.24% | N/A | 7.20% |
To get a fuller picture of the mortgage rates the rest of the Big Six are offering, you can also explore:
- BMO mortgage rates.
- CIBC mortgage rates.
- National Bank mortgage rates.
- Scotiabank mortgage rates.
- TD mortgage rates.
If you’re a long-time RBC customer, you might be most comfortable dealing with the bank for your future mortgage needs. That’s totally valid. Comparing mortgage rates, terms and conditions across lenders, however, can help ensure you get the best deal on the right product for your unique mortgage needs.
If you don’t feel confident making these comparisons on your own, consider working with a mortgage broker, who can take care of this step for you — and possibly negotiate a lower interest rate.
How to get the best mortgage rate at RBC
As one of Canada’s federally regulated A lenders, RBC follows the country’s strict lending guidelines. That means qualifying for a suitable mortgage at RBC might require a little effort on your part, including:
- Raising your credit score. A high credit score tells lenders that you pay your debts on time. A low credit score, on the other hand, might mark you as more of a credit risk and result in you being offered a higher interest rate. If your credit score is quite low, you may not be approved for a mortgage at RBC at all. Instead, you might have to apply with one of Canada’s many B lenders.
- Making a larger down payment. If you can make a significant down payment, one that goes well beyond Canada’s minimum down payment guidelines, lenders might see that you prioritize home ownership — but they’ll definitely see that they can loan you less money. Both interpretations mean less risk for the lender, which could mean a lower mortgage rate for you.
- Lowering your debt service ratios. If your debt service ratios are high, it signals to lenders that too much of your income is already going toward paying down debt. That’s risky for lenders, and the more risk you present as a borrower, the higher the rate you’ll be offered.
- Shopping around. Your everyday bank may not offer you the best mortgage rate. Taking a look at the rates other lenders are charging is one way to find out who’s offer is the right fit for your financial situation.
- Negotiating: Don’t be afraid to ask your lender if they can improve on the rate they’ve offered you. If they stand firm, let them know that you’re going to see what other lenders are offering before making a final decision.
Getting pre-approved for a mortgage at RBC
Getting pre-approved for a mortgage is a crucial step in the home buying process. A pre-approval tells you how much a lender is willing to loan you at a particular interest rate. This establishes your home buying budget and tells homeowners that your offer — so long as it falls within the limits of your pre-approval — is legit.
The mortgage pre-approval process at RBC involves providing all the documents the bank requires for evaluating your finances. This might include:
- Banking information that confirms your assets and down payment savings.
- A letter of employment.
- Pay stubs that demonstrate your income.
- Information related to any debts you have.
The mortgage pre-approval process at RBC will also include a hard credit inquiry, which allows the bank to assess your credit score and review your credit history. Hard inquiries may lead to a temporary dip in your credit score.
How to start a mortgage pre-approval at RBC
You can start the pre-approval process online or in person at an RBC branch. Because a pre-approval is intended to be thorough and actionable, plan to set aside some time to talk over the results with one of the bank’s mortgage advisors. Ideally, they’ll provide a few options to choose from.
What else should you know about pre-approvals at RBC?
When weighing those options, make sure you understand the fees, terms and conditions involved with each mortgage offer, including any prepayment privileges (and prepayment penalties). Getting clarity around these factors during pre-approval can make the next step — officially applying for a mortgage once you’ve made a successful bid on a home — go more smoothly.
Mortgage pre-approvals are free and non-binding. Just because you get pre-approved at RBC doesn’t mean you can’t get your mortgage elsewhere. But if you get pre-approved at RBC and then decide to work with a different lender, you’ll have to go through the pre-approval process again.
Frequently asked questions about RBC mortgage rates
As of August 3, 2023, RBC’s prime rate is 7.2%. This rate determines the interest the bank charges on variable-rate mortgages, lines of credit and certain credit cards.
You can — and should — negotiate your mortgage rate at RBC. When you first apply for a mortgage, a lender may not offer you the lowest rate possible, so it’s always advisable to ask for a lower one. Even if you’re only able to reduce the cost of your mortgage by a little, the money you save can be put toward a better use.
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