Debt, Investing, Real Estate

RBC Mortgage Promotions For October 2022

It’s not a secret that mortgage is one of the common debts in Canada. And according to the Bank of Canada, over half of Canadian homeowners have a mortgage – with the majority having fixed mortgage terms.

But the post-pandemic realities and other external factors that are heating the economy have affected both fixed and variable mortgages in Canada.

With this, shopping for a mortgage now goes beyond just looking at the interest rate and APR. We have now learned to look at fees and every other factor that will impact our mortgage costs.

Mortgage promotions have been one of the proven ways of reducing mortgage costs in Canada. As expected, mortgage promotions vary from one financial institution to the other, making it essential to choose from the best option.

Does RBC offer the best mortgage promotion? How much is the promotion? Who is eligible for the promotion? 

This article discusses everything you need to know about the RBC mortgage promotions and how they compare with other mortgage promotions in Canada.

RBC Mortgage Promotions
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RBC Mortgage Promotions

RBC offers two major mortgage promotions ranging from switch fees waiver and switch bonus. That’s, the promotions are available to existing mortgage owners looking to move their mortgages to RBC.

In what follows, you will learn about the major two categories of RBC mortgage promotions and their eligibility.

1. Switch Fee Waiver

If you’re looking to move your mortgage to RBC, you don’t have to bother about switch fees. RBC covers the entire switch fee, saving you up to $1,100.

Below are the types of switch fees that RBC covers to help you move your mortgage cost-effectively.

  • Up to $300 processing fee
  • Up to $300 discharge fee (charged by your former lender)*
  • Up to $500 title insurance fee**

*The discharge fee is not available in Qu├ębec. 

**The title insurance fee is up to 1,000 in Quebec and up to $700 in the Atlantic region.

To qualify for the RBC switch fee offer, you must meet the following eligibility: 

  • Move a minimum of $100,000 mortgage to RBC or $75,000 if you reside in the Atlantic region
  • Switch your mortgage to an RBC 5-year closed variable term or 4-year or greater fixed term

The interesting part is that you can switch your mortgage completely online without commuting to RBC’s physical branch.

To get started, you should contact an RBC Mortgage Specialist online. All you need is to visit this page to search for an RBC Mortgage Specialist by entering your postal code, address or intersection.

2. Switch Cash Bonus

Besides offsetting switch fees, RBC also offers up to a $3,000 cash bonus to individuals that move their mortgage to it. 

The cash bonus is based on a cashback structure. So how much cash bonus you get depends on the amount you move to RBC. 

Below is the breakdown of the RBC switch cash bonus per mortgage amount.

Mortgage Switch Amount Cash Back
$300,000  to $499,999.99$500
$500,000 to $749,999.99$1,000
$750,000 to $999,999.99$2,000
$1,000,000+$3,000 

To qualify for the RBC switch cash bonus, you must meet the following eligibility: 

  • Move a minimum of $300,000 mortgage to RBC by October 31st, 2022
  • Fund your mortgage within 120 days from the day the interest rate starts counting (it shouldn’t exceed February 28, 2023).
  • Switch your mortgage to an RBC 5-year closed variable term or 4-year or greater fixed term
  • Have an RBC personal account (excluding Leo Young Savers Account)

RBC First Home in Canada Promotion

RBC also offers mortgage promotions to new Canadians looking to prepare for their down payment or buy their first homes. 

The bank mortgage specialists are ready to assist new Canadians throughout their mortgage-buying processes. This includes: 

  • Financing and savings explanations
  • Down payment savings advice
  • Guidance on the process of buying a mortgage in Canada
  • Mortgage pre-approval application

That being said, new Canadians can enjoy competitive mortgage rates with a 120-day rate guarantee at RBC. 

As if that’s not enough, RBC also offers new Canadians access to fast and easy mortgage approvals with no Canadian credit history requirement. 

With up to a 30 years amortization period, new Canadians have a lot to enjoy by starting their mortgage journey with RBC. 

To get started, all you need is to contact an RBC Mortgage Specialist by phone at 1-866-756-1107 or use the Mortgage Specialist Locator to trace one.

Is the RBC Mortgage Promotions Worth It?

Saving up to $4,100 from mortgage switch fees is worth it in absolute terms. Not many financial institutions cover mortgage switch fees in Canada.

In addition, getting up to $3,000 cashback from your mortgage payment is not a small saving. Although several other financial institutions also offer up to $3,000 cash back on mortgage switches without requiring the high mortgage amount of $1 million.

Notwithstanding, RBC offers competitive promotions both for existing and new Canadian home buyers.

But are the mortgage promotions enough? Absolutely no! You don’t want to look at the mortgage promotions alone but also the mortgage rates and APR.

As of the time of writing, RBC has a 5-year fixed closed rate of 6.14% with 6.17% APR. It also has a 5-year variable posted rate of 5.45% with 5.48% APR. 

With this, it’s obvious that RBC has some of the highest fixed and variable rates on a 5-year term (the popular mortgage term in Canada).

So if you’re looking to save costs for the long term, you should consider some of the best mortgage rates in Canada.

But if you’re after short-term gains, you can’t go wrong with the RBC mortgage promotions discussed above.

Other Mortgage Promotions in Canada

Most of the big banks in Canada offer mortgage promotions towards expanding their base. To determine whether the RBC mortgage promotions are worthwhile, it’s essential to compare them with the promotions of other banks.

Below is an overview of the mortgage promotions of Tangerine, Simplii Financial, CIBC and Scotiabank.

Tangerine Mortgage Promotion

Tangerine has built a long reputation for its competitive mortgage rates. The pioneer digital bank offers up to a $5,000 bonus as a cashback to eligible mortgage buyers. 

As with RBC, the Tangerine mortgage cashback is tiered per mortgage amount. Below is the breakdown of the cashback. 

Mortgage AmountCashback
$350,000 to $749,999 $2,000
$750,000 and above$5,000

One thing to note here is that Tangerine has a higher cashback structure with a minimum mortgage amount compared to RBC. 

In addition, the Tangerine mortgage cashback applies both to new and existing mortgages while the RBC promotions apply only to mortgage switches. 

That being said, you must meet the following eligibility to qualify for the Tangerine mortgage promotion: 

  • Apply for a new Tangerine mortgage by  October 31, 2022 
  • Apply for a minimum mortgage amount of $350,000 with a maximum amortization period of 25 years
  • Apply for a Tangerine 5-year closed variable mortgage term or 5-year or greater closed fixed term
  • Fund your mortgage within 120 days of submitting the application
  • Have a Tangerine chequing account (that’s where the bonus will be deposited) 

Once you meet the above eligibility, you will receive the Tangerine mortgage cashback within  30 days of funding your mortgage.

Like RBC, Tangerine also covers mortgage switch fees. While RBC covers up to $4,100, Tangerine covers a lower amount of $1,300.

If you’re looking to move your mortgage to Tangerine, you will save the switch fees by meeting the following eligibility: 

  • Switch your mortgage to Tangerine by October 31, 2022
  • Move a minimum of $150,000 mortgage amount
  • Apply for a Tangerine 5-year closed variable mortgage term or a minimum of 3-year closed fixed term 

As of the time of writing, Tangerine has a competitive 5-year variable mortgage rate of 5.15% and a 5-year fixed rate of 5.34%.

Simplii Mortgage Promotion

Simplii Financial has distinguished itself from other online-only banks in Canada with competitive promotions across different banking and financial products.

In addition to 4.75% promotional interest on savings accounts and a $350 cash bonus on chequing accounts, Simplii also offers up to a $3,000 cash bonus on new residential mortgages.

The Simplii mortgage cashback is also tiered per mortgage amount as shown below: 

Mortgage AmountCashback
$750,000 or more$3,000
$500,000 to $749,999$1,500
$300,000 to $499,999$1,000
$100,000 to $299,999$750

To qualify for the Simplii mortgage cashback, you must meet the following eligibility: 

  • Apply for a new residential mortgage at Simplii by October 31, 2022
  • Purchase a minimum of $100,000 mortgage

What I also like about Simplii mortgages is that they come with competitive special rates and APRs as shown below: 

5-Year Fixed Mortgage5-Year Variable Mortgage
Posted Rate5.89%5.45%
Special Rate5.34%5.15%
APR5.34%5.15%

Learn more about Simplii mortgage on this PC Mortgage rates review

CIBC Mortgage Promotion

CIBC, the parent company of Simplii Financial, is not left behind in the list of the best mortgage promotion providers in Canada.

The big bank also offers $3,000 cash back on a $750,000 or higher mortgage switch. Like RBC, the CIBC mortgage cashback is tiered as you can see below: 

Mortgage AmountCashback 
$100,000 to $299,999.99$1,000
$300,000 to $499,999.99$1,200
$500,000 to $749,999.99$2,000
$750,000 and above $,3000

While you will save more with RBC promotions, CIBC allows you to claim up to $3,000 in mortgage cashback with a relatively lower mortgage amount of $750k.

That being said, you must switch a minimum of $100,000 mortgage to CIBC to qualify for the minimum cashback offer.

As with Simplii Financial, CIBC also has relatively high mortgage posted rates but with competitive special rates:

5-Year Fixed Mortgage5-Year Variable Mortgage
Posted Rate6.49%5.45%
Special Rate5.34%5.20%
APR5.36%5.22%

If you’re determined to go with CIBC, all you need to do is request a call by visiting this link or call a CIBC advisor at 1-866-525-8622.

Learn more about CIBC mortgage cashback.

Scotiabank Mortgage Promotion

Finally, Scotiabank also waives up to $1,200 on mortgage switch fees. The amount is considerably lower than the $4,100 switch fees of RBC. 

However, Scotiabank offers preferred mortgage rates to those that apply online. It also covers up to $300 appraisal fees in addition to the switch fee waiver. 

How do you qualify for the Scotiabank mortgage offer? You must meet the following eligibility: 

  • Move a minimum of $100,000 to Scotiabank
  • Apply for a residential mortgage
  • Apply for a 5-year closed variable term or 3-year or greater closed fixed term 

To claim the Scotiabank mortgage offer, you must apply online via the eHOME page or contact a Scotiabank Mortgage Specialist at 1-877-303-8879.

It’s worth noting that the Scotiabank posted rates are on the high side. As of the time of writing, Scotiabank has a 5-year fixed posted rate of 6.140% and a 5-year variable posted rate of 5.65%. This requires you to treat the mortgage promotions with caution.

The Bottom Line

Like every other promotion, mortgage promotions are temporary rewards that help you save costs on things you must otherwise pay for. 

In the case of RBC mortgage promotions, you will save cost on switch fees and switch amounts. That could sum up to $7,100 depending on the mortgage amount you moved to RBC.

But before claiming any mortgage promotion, it’s essential to take into consideration the bigger picture to avoid being trapped in the long run. 

Considering the bigger picture means understanding the mortgage rates, APRs and any other applicable fees charged by the mortgage lender.

So while you can’t go wrong with RBC mortgage promotions, you will likely make an informed decision by comparing different options such as the above alternatives. 

Need more clarification? Kindly drop your concerns in the comment section or contact our team at [email protected]

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About John Adebisi

John Adebisi is a CPA, FCCA and MBA holder with a Bachelor's degree in Accounting & Finance. He has over a decade of experience in writing personal and business finance content for audiences across North America, Europe, the UK and Africa. In addition to his writing experience, he also has a strong background in financial research and analysis, giving him a unique perspective of the financial markets. John derives pleasure in helping people make smart financial decisions, and he believes that knowledge and experience can be valuable resources for anyone who wants to learn how to manage their money.

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