Mortgage Calculator RBC Ontario

Mortgage Payment Formula:

\[ M = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:
\( r = (1 + \frac{i}{2})^{\frac{1}{6}} - 1 + \frac{P \times 0.005}{12} \)

Monthly Payment (CAD):

Definition: This calculator estimates monthly mortgage payments for RBC mortgages in Ontario using RBC's specific interest calculation method.

Purpose: It helps home buyers and owners understand their potential mortgage payments with RBC's unique interest compounding approach.

The calculator uses the formula:

\[ M = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

RBC Specific: The effective monthly rate includes semi-annual compounding adjustment and an RBC-specific premium calculation.

Details: Accurate mortgage calculations help with budgeting, comparing loan options, and understanding the long-term cost of home ownership.

Tips: Enter the loan amount in CAD, annual interest rate (%), and loan term in years. All values must be > 0.

Q1: Why is RBC's calculation different?
A: RBC uses semi-annual compounding and includes a premium in their effective rate calculation.

Q2: What's the 0.005 factor in the rate calculation?
A: This is RBC's premium adjustment based on the loan amount.

Q3: Does this include property taxes or insurance?
A: No, this calculates only the principal and interest portion of an RBC mortgage.

Q4: How accurate is this calculator?
A: It provides a close estimate, but actual RBC mortgage payments may vary slightly.

Q5: What's the maximum amortization period in Ontario?
A: Typically 25 years for conventional mortgages, but shorter for high-ratio mortgages.