One hundred per cent Loan to Value Home Financing now available

November 27, 2006 - 10:45 a.m. EST

Effective December 1, 2006, the RBC No Down Payment Mortgage option provides for up to 100 per cent Loan-to-Value (LTV) financing. This eliminates the previous 5 per cent cash back (established when this product was introduced in 2003).

As well, many additional client benefits, including a wider selection of terms available (variable, fixed, RateCapper, open/closed/convertible), selection of all interest terms, ability to have rate discounts, option for extended rate commitment periods, and availability of longer amortization periods, now exist.

The enhancements to the RBC No Down Payment Mortgage align with RBC’s commitment to Client First in meeting the needs of our clients by making it possible for more Canadians to own their home.

Target clients

The RBC No Down Payment Mortgage option benefits clients who want to get into homeownership and build up equity, but have not yet accumulated a down payment. A goals-based discussion with your clients is the ideal framework for ensuring they understand the advantages and disadvantages of this mortgage option.

This mortgage option is targeted to clients with good credit history and strong employment history, and may include:

• First time home buyers
• Graduating professionals
• Clients looking to maximize their home purchasing power.

Amortization periods greater than 25 years and available interest terms

As of December 1st, RBC No Down Payment mortgages are available with extended amortization periods (greater than 25 years). However, until enhancements are implemented in Q2 2007, all mortgages with amortization periods greater than 25 years are limited to closed fixed rate interest terms of three, four or five years.