Big-bank profile · Royal Bank of Canada
RBC Royal Bank mortgages: rates, prepayment, penalties and HELOC
Short answer: RBC’s 5-year fixed special was 5.14% (posted 6.19%) on November 2, 2026. Closed mortgages allow lump sums of 10% a year. Breaking a fixed term costs the higher of 3 months’ interest or an IRD against its posted rate for the closest term, less your discount.
Canada’s largest bank sells closed fixed terms from six months to 25 years, a 5-year variable, open terms and the RBC Homeline Plan. The fine print to know: a 10% annual lump sum, a 10% payment increase, Double-Up payments, and a posted-rate IRD penalty.
Bank pages checked November 2, 2026 · Independent guide, not affiliated with RBC.
Mortgage products
- Closed fixed terms listed: 6-month convertible; 1, 2, 3, 4, 5, 7, 10 and 25 years. Open terms: 6-month and 1-year fixed, and a 5-year open variable. Closed variable: 5-year, priced off RBC Prime. [RBC Royal Bank, checked Nov 2, 2026]
- Special-offer rates are shown separately for amortizations of 25 years or less and over 25 years, and for high-ratio (insured) mortgages. [RBC Royal Bank, checked Nov 2, 2026]
- For new mortgages RBC guarantees the rate for up to 120 days; at renewal it guarantees the rate for 30 days before the renewal date. [RBC Royal Bank, checked Oct 31, 2026]
Posted and special rates
| Term | Rate | Type |
|---|---|---|
| 5-year fixed (closed) | 6.190% | Posted |
| 5-year fixed, ≤25-yr amortization | 5.140% | Special / advertised |
| 5-year fixed, high ratio | 4.840% | Special / advertised |
| 3-year fixed (closed) | 6.250% | Posted |
| 3-year fixed, ≤25-yr amortization | 5.090% | Special / advertised |
| 1-year fixed (closed) | 5.740% | Posted |
| 5-year variable, Prime − 0.30% | 4.400% | Special / advertised |
RBC Prime was shown as 4.700%. The 5-year variable is posted at RBC Prime + 0.000%. [RBC Royal Bank, checked Nov 2, 2026]
Posted rates are the bank’s list rates; most borrowers are offered a discount from them. The posted rate still matters after you sign, because the big banks use it in the IRD penalty. Read posted vs special rates, and score any quote on IsThisAGoodRate.ca.
Prepayment privileges
- Lump sum: up to 10% of the initial principal once a year. [RBC Royal Bank, checked Oct 31, 2026]
- Payment increase: “once in each 12-month period” you can raise payments by as much as 10%. [RBC Royal Bank, checked Oct 31, 2026]
- Double-Up: prepay between $100 and the principal-and-interest portion of your regular payment on any or every payment date. [RBC Royal Bank, checked Oct 31, 2026]
- Skip a payment: once every 12 months, if the mortgage is not in arrears and the balance plus skipped payments does not exceed the original amount; skipped interest is added to the balance. [RBC Royal Bank, checked Oct 31, 2026]
Prepayment penalty
- Fixed rate: the greater of three months’ interest on the amount prepaid, or the interest rate differential (IRD) for the remainder of the term. [RBC Royal Bank, checked Oct 31, 2026]
- IRD comparison: the difference between your rate and RBC’s posted rate on the prepayment date for a similar term, “less your rate reduction”. RBC says it applies present value, which lowers the result. [RBC Royal Bank, checked Oct 31, 2026]
- Closed variable (and RateCapper): 3 months’ interest on the amount prepaid. [RBC Royal Bank, checked Oct 31, 2026]
- Clients whose mortgages migrated to RBC in 2024 have separate published terms; check RBC’s page for migrated clients. [RBC Royal Bank, checked Oct 31, 2026]
RBC penalty calculator (uses RBC’s posted rates) · RBC’s own penalty page ↗
Worked example: what breaking a RBC mortgage would cost
A $500,000 5-year fixed at 5.29%, 25-year amortization, signed when RBC’s posted 5-year rate was 6.89% (a 1.60-point discount). Priced with RBC’s own posted table (November 2, 2026) and the rule it publishes, the cost to break falls like this as the term runs down:
| Months left | Balance | RBC compares with | Rate after discount | 3 months’ interest | Estimated penalty |
|---|---|---|---|---|---|
| 54 | $495,082 | 5-yr posted | 4.59% | $6,547 | $15,595 |
| 42 | $484,851 | 4-yr posted | 4.49% | $6,412 | $13,576 |
| 30 | $474,072 | 3-yr posted | 4.65% | $6,270 | $7,585 |
| 18 | $462,715 | 2-yr posted | 4.14% | $6,119 | $7,982 |
| 6 | $450,750 | 1-yr posted | 4.14% | $5,961 | $5,961 |
With 30 months left, RBC would charge about $7,585, the lowest of the six big banks for this mortgage (RBC $7,585, CIBC $19,555). If RBC’s posted rates fell a point before you broke, it would rise to $19,437. Using the largest lump-sum privilege RBC states (10% of the original amount) first ($50,000) would bring it to $6,785.
An estimate from this site’s engine, simple interest over the months left; RBC’s written payout figure governs. Price your own RBC mortgage.
Portability
- You can port the mortgage “if you’re purchasing a new property at the same time you’re selling your existing one”, keeping its rate and terms; extra funds can be blended with the current rate. [RBC Royal Bank, checked Oct 31, 2026]
- For the ported amount you avoid prepayment charges. Additional terms and conditions apply. [RBC Royal Bank, checked Oct 31, 2026]
HELOC and readvanceable: RBC Homeline Plan
- Borrow up to 80% of your home’s value; as you pay down the mortgage, credit available on the Royal Credit Line increases up to a maximum of 65% of the home’s value. [RBC Royal Bank, checked Oct 31, 2026]
- If the plan’s total limit is above 65% of the value at application, part of each mortgage payment’s principal raises the credit-line limit and the rest reduces the overall plan limit. [RBC Royal Bank, checked Oct 31, 2026]
Renewal
- RBC says you can renew up to 120 days before your term ends without penalty. [RBC Royal Bank, checked Oct 31, 2026]
RBC’s 10% privileges are on the lower side of the six, but Double-Up and skip-a-payment give flexibility. If you might move, porting is described for buying and selling at the same time. The penalty uses posted rates less your discount, so a big discount today can mean a bigger IRD later.
Official RBC pages
- RBC mortgage rates
- RBC: understanding prepayment charges
- RBC Homeline Plan
- Institution profile (regulator, deposit insurance): RBC Royal Bank on CanadianBanks.ca
RBC mortgage questions
How much can I prepay on an RBC mortgage?
RBC’s pages describe a lump sum of up to 10% of the initial principal once a year, a payment increase of up to 10% once in each 12-month period, and Double-Up payments of $100 up to your regular principal-and-interest payment. Your contract governs.
How does RBC calculate the penalty on a fixed mortgage?
The greater of three months’ interest on the amount prepaid or an interest rate differential: your rate versus RBC’s posted rate for a similar term on the prepayment date, less your rate reduction. Get an exact figure from RBC before you break.
Sources
- Mortgage rates — RBC Royal Bank, checked Nov 2, 2026
- Understanding mortgage prepayment charges — RBC Royal Bank, checked Oct 31, 2026
- Fixed rate mortgages — RBC Royal Bank, checked Oct 31, 2026
- Pay down your mortgage faster (Double-Up, lump sums, skip a payment) — RBC Royal Bank, checked Oct 31, 2026
- Increasing your mortgage payments — RBC Royal Bank, checked Oct 31, 2026
- Porting a mortgage — RBC Royal Bank, checked Oct 31, 2026
- RBC Homeline Plan — RBC Royal Bank, checked Oct 31, 2026
- Renewing your mortgage — RBC Royal Bank, checked Oct 31, 2026
Educational information only, not financial, legal or tax advice. BankMortgages.ca is independent and is not affiliated with, endorsed by or paid by any bank named on this site. Bank terms change: confirm every rate and term with the lender and the official sources linked on each page before you act. Read the full disclaimer.
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Last checked November 2, 2026. Spot something out of date? Tell us at hello@mitey.ca.
