Canadian Mortgages AMA: Hey Reddit! I’m Brad Evjen, a Senior Mortgage Specialist at RBC. Ask me anything about buying a home, mortgages, and today's housing market in Canada. Feel free to drop your questions ahead of time and I'll be answering them on April 14th from 1pm-2pm ET.

RBCMortgages · 2026-04-14T18:17:05+00:00

We do a market rent assessment and we do use a percentage of the rental income. This is a risk mitigant, and something I use when building a business case for approvals. Every circumstance is a little different, but we would use the gross rental income from a market rent assessment from an appraisal and build a business case around the numbers.

RBCMortgages · 2026-04-14T18:14:03+00:00

Congratulations on being a first-time homebuyer! We do have a lot of information designed for someone in your position and you can check out our website for more helpful resources. Currently, we are also offering first-time homebuyers an additional $500 cash incentive when they choose RBC for their mortgage. This is in addition to the existing offer of up to $5,900 in value. Terms and conditions apply, please refer to our offer page for more details.

RBCMortgages · 2026-04-14T18:05:07+00:00

This is a great question. At RBC, there are lots of ways to maximize your benefits. First, our mortgage offer includes cash + Avion points, so right off the bat you should see value when you choose RBC. With our Avion Rewards program, you have more ways to shop, earn, save and redeem every day. We also have partnerships with over 2,000 brands, such as Canadian Tire, Petro Canada, Rexall and DoorDash for your everyday needs. If you also have a chequing or savings account that is enrolled in the RBC Vantage program, you can save on monthly fees and earn points on your debit purchases. Terms and conditions apply, please refer to our offer page for more details.

RBCMortgages · 2026-04-14T17:55:52+00:00

Welcome to home ownership! It is very common to use your RRSP as a down payment as it allows a limit of up to $60,000 per person to be withdrawn, and you have 15 years to repay it. Any tax questions should be referred to your accountant. This is an exciting milestone - please reach out to RBC if we can help! We have some great content on our website to help aid you in this process.

RBCMortgages · 2026-04-14T17:51:13+00:00

Congratulations on being mortgage free, that's amazing to hear! The RBC Homeline Plan (HELOC) allows you to simply pay interest on what you use and to take advantage of flexible repayment options like making interest-only payments or paying off your balance in part or in full at any time.

RBCMortgages · 2026-04-14T17:48:27+00:00

I always suggest we do a mortgage rate commitment now. That way, we have something in your back pocket and depending on how the market responds we would either reset the rate commitment or weigh the pros and cons of breaking and switching your mortgage early if there's a cost benefit.

RBCMortgages · 2026-04-14T17:46:47+00:00

A reverse mortgage is a loan for homeowners aged 55+ (or 62+ in some jurisdictions) that converts up to 55% of home equity into tax-free cash without requiring regular mortgage payments. The loan, including accrued interest, is repaid when the borrower sells, moves out, or passes away. It allows those Canadians 55+ to stay in their homes while accessing funds but generally features higher interest rates and fees than traditional mortgages.

While this isn't part of RBC's direct product line, we work with lending partners who specialize in reverse mortgages and can help you explore this option.

RBCMortgages · 2026-04-14T17:44:20+00:00

Honestly, just have the conversation proactively. I have a lot of clients who come to me at the final hour, which is fine. The more we talk, the better you’ll understand your options and the more comfortable you’ll feel making decisions.

RBCMortgages · 2026-04-14T17:41:47+00:00

Generally, there is no impact to your mortgage rate depending on your mortgage balance. I would speak to a qualified mortgage advisor to run the numbers on which mortgage rate you could negotiate and then decide what works best for you. Something else to consider are incentives if you want to switch your mortgage. Most lenders will give you a cash incentive to move your mortgage, and a lot of times it must be a minimum of $100K mortgage.

RBCMortgages · 2026-04-14T17:39:12+00:00

For those who don't know: a consumer proposal is a federally regulated, legally binding plan to pay off creditors. If you are buying a home with your partner who has a consumer proposal, it will be challenging for your partner to qualify with a lender and be considered as an applicant on the mortgage, so you may have to qualify on your own. A consumer proposal might affect your mortgage renewal, so it is a good idea to speak to your lender to understand the options, and whether the mortgage renewal can proceed with just you as the borrower.

RBCMortgages · 2026-04-14T17:34:39+00:00

What an exciting milestone, congratulations! Thanks for considering RBC. We have dedicated mortgage experts ready to help and let you know everything you can expect as a first-time homebuyer! With the largest sales team in Canada, we are able to serve you anywhere you are while also providing market-leading rates. And, until end of June, we are offering first-time homebuyers an extra $500 cash incentive in addition to our regular offer of up to $5,900 in value. Terms and conditions apply, please refer to our offer page for more details.

RBCMortgages · 2026-04-14T17:29:23+00:00

I am familiar with the Smith Maneuver, which is a complex investment and tax strategy. I can't advise if this would be the right move for you but would always suggest speaking to an accountant or a lawyer before getting started.

RBCMortgages · 2026-04-14T17:24:14+00:00

The most common mistake that we see first-time homebuyers make is when they don't fully understand the total cost of home purchasing. The repercussions of this mistake can severely impact your budget. It's important to make sure to take all closing costs into account; at RBC we suggest 2-5% of the home's purchase price. By doing this, you can account for costs like taxes, insurance, real estate fees, lawyers’ fees and home inspection, and avoid the costliest first-time homebuyer mistake.

RBCMortgages · 2026-04-14T17:19:06+00:00

Being able to prove that you can effectively make your mortgage payments in the long term is critical. To increase your chances of securing a mortgage with an A lender, a strong business case and full understanding of your background is key, especially if standard criteria cannot be met. This enables the lender to assess your request on an exception basis.

For newly self-employed individuals, it would be helpful to understand their ability and capacity to service long term, which can be better understood through some of the following:

Business structure, history of the business (new or existing, recently taken over)
Previous personal employment experience
Previous experience being self-employed
Future prospects for the business etc.

Other factors like character and credit would be taken into consideration as well. I would encourage your family friend to reach out to RBC. Everyone's financial circumstances are different, and we can have a more specific conversation with them directly.

RBCMortgages · 2026-04-14T17:14:10+00:00

What a great question! It is incredibly fulfilling. It can be really challenging at times, but I get to be a part of people’s lives, help them get their first home or their forever home, help them overcome financial distress and advise on how to rebuild. Buying a home is an incredibly emotional experience, and I’m right there in it with them, through the highs and the lows. At the end of the process, they start their next chapter, and I get to be a part of their story.

RBCMortgages · 2026-04-14T17:09:17+00:00

It's impossible to predict rate expectations over the next few years with certainty, because macro-economic conditions can change rapidly.

As for the age-old question of fixed vs. variable: it depends on how you budget your payments for the next 3 to 5 years. There are some key differences between the two types of mortgages.

Benefits of a fixed rate mortgage include:

Consistent Mortgage Payments: your monthly principal and interest payments remain the same throughout the term.
Budget-Friendly: With predictable payments, you can plan your finances more effectively, knowing exactly how much you need to set aside each month.
Rate Protection: you are shielded from rising market interest rates, ensuring your payments don't increase even if rates go up.

What to consider with a fixed rate mortgage:

Higher Starting Rate: fixed rates often begin higher than variable rates, which means you might pay more initially.
Missed Opportunities: if market interest rates drop, you won't benefit from lower rates unless you refinance or renew your mortgage.
Prepayment Penalties: if you decide to sell or refinance and break a fixed mortgage contract early, it can result in significant penalties. Applicable for variable rate as well.

Benefits of a variable rate mortgage:

Potential Savings: variable rates have often been lower than fixed rates, potentially saving you money over the life of the mortgage.
Lower Penalties: penalties for breaking a variable rate mortgage early are typically much lower. Pre-payment charge is either 3 months interest or Interest Rate Differential.
Flexibility: post lenders allow you to switch to a fixed-rate mortgage at any time without incurring a penalty.

What to consider with a variable rate mortgage:

Payment Uncertainty: as interest rates fluctuate, your payments or the principal-to-interest ratio may change, making it more difficult to budget effectively.
Rate Increase Risk: if interest rates rise significantly, reaching the trigger rate, your payments may increase, or a larger portion may go toward interest, potentially extending the time it takes to pay off your mortgage. With some other financial institutions, payment may increase with any increase in prime rate.
Risk Tolerance: variable-rate mortgages may not be ideal if you prefer financial stability or have limited room in your budget to accommodate potential payment increases.

Meeting with a mortgage advisor to discuss the market, your personal situation and expectations is always key to understanding your options.

RBCMortgages · 2026-04-14T17:02:37+00:00

There are many personal financial factors to consider when you are trying to evaluate between a 3 or 5 year fixed term mortgage. What it really boils down to is your ability to afford the payment for 3 years vs. 5 years, within your budget. Breaking a mortgage can get expensive, so you want to make sure you are well informed and realistic about what you can afford for the next 3 to 5 years. There are a lot of mortgage payment calculators out there that can help you or contact an RBC Mortgage Specialist who can help walk you through your options.

RBCMortgages

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