{"id":43924,"date":"2023-07-26T15:11:24","date_gmt":"2023-07-26T15:11:24","guid":{"rendered":"https:\/\/hardbacon.ca\/non-classifiee\/rbc-mortgage-review\/"},"modified":"2026-08-25T18:11:03","modified_gmt":"2026-08-25T22:11:03","slug":"rbc-mortgage-review","status":"publish","type":"post","link":"https:\/\/hardbacon.ca\/en\/mortgage\/rbc-mortgage-review\/","title":{"rendered":"RBC Mortgage Review for 2022"},"content":{"rendered":"

Royal Bank of Canada (RBC) is the largest bank in the country by revenue, and one of the top 10 largest banks in the world. Serving Canadians since 1864, what started as a private financial institution founded by a small group of maritime business owners, has grown into Canada\u2019s largest chartered bank. Today, RBC boasts more than 1,300 branches from coast to coast, with over 86,000 employees, and more than 17 million customers around the world. Unsurprisingly, about 1 in 3 <\/span>mortgages in Canada<\/span><\/a> are financed through RBC, making them the largest mortgage lender by market share. While RBC might be one of the most popular mortgage lenders, let\u2019s take a look at what an RBC mortgage has to offer.\u00a0\u00a0<\/span><\/p>\n

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RBC mortgage eligibility requirements\u00a0<\/span><\/h2>\n

RBC obtains borrower credit reports through <\/span>TransUnion<\/span><\/a>. In some cases, that could be good news for those with lower credit scores through Equifax. It is not uncommon for TransUnion credit scores to be higher than Equifax credit scores; with some people reporting a 100 point difference in their score between the two credit bureaus.<\/span> TransUnion<\/span><\/a> uses a slightly different scoring model that factors your employment history into your credit score, which accounts for the higher score for some individuals.\u00a0<\/span><\/p>\n

Having said that, the minimum credit score to qualify for an uninsured, conventional mortgage in Canada is consistent across all 6 big chartered banks. That means in order to qualify for an RBC mortgage you\u2019ll need a <\/span>credit score<\/span><\/a> no less than 600. Keep in mind that mortgage eligibility also takes your income and down payment into account as well.\u00a0<\/span><\/p>\n

Most lenders, including RBC, will lend to post-bankrupts who have reestablished their credit history. Generally, you will need to have been discharged from your bankruptcy for at least 2 years and increased your credit score to the minimum qualifying level of at least 600. Your credit report should show at least 2 credit accounts that have been open for at least 2 years and have been paid as agreed.\u00a0 In order to demonstrate that you have rehabilitated your credit, you should not have any missed payments reported or carry balances more than 30% of your credit limit on things like credit cards and lines of credit.\u00a0<\/span><\/p>\n

In Canada, the minimum down payment for a house less than $500,000 is 5%. However, borrowers that provide less than 20% down are required to purchase mortgage default insurance through a provider like the Canadian Mortgage and Housing Corporation (CMHC), these are commonly referred to as insured mortgages. To qualify for a CMHC insured mortgage, borrowers must have a minimum credit score of 680.\u00a0<\/span><\/p>\n

RBC is legally obligated to prove their mortgage borrowers can pass the mortgage stress test. This test is mandatory irrespective of your credit score and the size of your down payment. The stress test is a mortgage calculation that weighs the monthly cost of homeownership and all your outstanding debt obligations against your monthly household income. In order to pass the mortgage stress test, no more than 39% of your monthly household income should be spent on things like your mortgage payment, property taxes, and utilities. And no more than 44% of your monthly household income should be spent on your monthly debt repayment obligations and housing costs combined.\u00a0<\/span><\/p>\n

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Applying for a mortgage with RBC<\/span><\/h2>\n

RBC does not provide their mortgage products through brokers. You\u2019ll need to apply through an in-house RBC mortgage specialist. The easiest way to apply for an RBC mortgage is to start with their online <\/span>True House Affordability Tool. <\/span><\/a>This is only a pre-qualification tool that estimates how much of a mortgage you could potentially qualify for. However, it\u2019s a quick and easy access point to a mortgage pre-approval and full mortgage application.\u00a0<\/span><\/p>\n

In about a minute or less, the RBC True House Affordability tool will generate a pre-qualification estimate based on your credit rating, income, and the amount of your down payment without affecting your credit score. From there, the tool will connect you with an RBC mortgage specialist dedicated to your file. If you pre-qualify and choose to move forward with <\/span>a mortgage pre-approval<\/span><\/a>, your mortgage specialist will guide you through the entire process.\u00a0<\/span><\/p>\n

Alternatively, you can skip this tool and apply for a mortgage or mortgage pre-approval directly through:\u00a0<\/span><\/p>\n