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Your home is one of your greatest investments, that’s why your mortgage rate matters. Whether you’re exploring rates or hoping to learn more about fixed and adjustable rate options, we’re here to support you with the resources and information you need.
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Fixed Rates
  • Know what your payment amount will be throughout your term
  • Choose a payment schedule that suits your lifestyle – monthly, bi- weekly, semi-monthly or weekly
  • Pay down your mortgage faster. You can increase your payment by 20% or make a lump sum payment of up to 20% of the original amount each year – in addition to your regular payments – with no penalty or administration fee
Adjustable Rates
  • Your rate and payment decrease any time the RMG Prime Rate goes down
  • You can switch to an RMG fixed rate mortgage at anytime with no penalty
  • Pay down your mortgage faster. You can increase your payment by 20% or make a lump sum payment of up to 20% of the original amount each year – in addition to your regular payments – with no penalty or administration fee
Discover how much your mortgage payments could be and compare different mortgage options.
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Current Prime Rate
The prime rate is the annual interest rate used to set interest rates for variable loans and lines of credit, such as the RMG adjustable rate mortgage. The prime rate is primarily influenced by the policy interest rate set by the Bank of Canada.

See Prime Rate History
4.95%
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What is the prime rate?

Prime rate, also referred to as the prime lending rate, is a rate set by the Bank of Canada that banks and lenders use when determining the rates for their lending products, like loans and mortgages. There are eight fixed dates each year when the Bank of Canada can decide to change the prime rate. Changes to the prime rate in Canada are influenced by various factors like the economy, inflation, and more. In most cases, financial institutions will change their prime rates after a prime rate change from the Bank of Canada.

How a prime rate change may impact your adjustable rate mortgage

An adjustable rate mortgage is a mortgage with a variable rate, which is based on the RMG prime rate. As such, your rate will change when the prime rate does. Take a look at what you could expect for your mortgage payments when the prime rate goes up or down.

Note: A change to the prime rate doesn’t always mean your mortgage payments will change. The prime rate is just one factor that makes up your mortgage payments. Your specific payment schedule and amortization also play a role in the calculation of your payments.

For more information you can reach out to our team.

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RMG prime rate decreases

  1. Homeowners affected by the rate change will receive a notification by mail or in MyRMG.
  2. Your next mortgage payment stays the same, but the principal and interest portions are adjusted.
  3. The following mortgage payment will be lower based on your individual rate calculation.

RMG prime rate increases

  1. Homeowners affected by the rate change will receive a notification by mail or in MyRMG.
  2. Your next mortgage payment stays the same, but the principal and interest portions are adjusted.
  3. The following mortgage payment will be higher based on your individual rate calculation.
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Calculate your mortgage payments and compare rate scenarios

If you’re curious to see how a rate change could impact your mortgage payments, the RMG Mortgage Payment Calculator is a great tool to explore different scenarios.
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  1. Start with the RMG Prime Rate.
  2. Log in to MyRMG and select Mortgage Details to find your personal rate calculation.
  3. Use our Mortgage Payment Calculator to calculate your potential payments.
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Here’s an example of a mortgage payment calculation before and after a change to the RMG prime rate.


In this example, the homeowner has a mortgage rate calculation of
RMG Prime Rate – 0.95%.
Mortgage Payments Before Rate Change

Mortgage Amount: $500,000
Amortization: 25 years
RMG Prime Rate 5.20% - 0.95%* = 4.25%
Monthly Payment: $2,698.30

Mortgage Payments After Rate Change

Mortgage Amount: $500,000
Amortization: 25 years
RMG Prime Rate 4.95% - 0.95%* = 4.00%
Monthly Payment: $2,630.10

Monthly Savings: $68.20

What should I do if my mortgage rate changes?

Rate decrease?

Homeowners with an adjustable rate can benefit from a lower payment and can allocate the funds saved to other financial goals

Rate increase?

In the case of an increase to the prime rate and a higher mortgage payment, homeowners may find it beneficial to review their finances for ways to save in other areas

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Your RMG adjustable rate mortgage gives you options

An adjustable rate mortgage is a great option for homeowners with flexibility in their finances and the ability to navigate potential rate changes. While many homeowners will remain comfortable with their adjustable rate mortgage, others may wish to lock-in to a fixed rate term to avoid potential changes to their mortgage rate and payments.

Want to lock-in to a fixed rate mortgage?

If your needs have changed and you feel that an adjustable rate mortgage is no longer the right choice for you, it’s easy to convert your mortgage to a fixed rate. In fact, you can lock-in to a fixed rate mortgage term of equal or greater length at any time and at no cost.
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How do I lock-in a mortgage rate with RMG?

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Choose your term

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When you lock-in to a new mortgage, you start a new term with a new rate.

You’ll get a new maturity date when you lock-in
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Review mortgage details

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Some of your mortgage conditions may be different so double-check the details
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Lock-in your new mortgage

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Your new mortgage rate and term are locked-in

Choose your term

1
When you lock-in to a new mortgage, you start a new term with a new rate.

You’ll get a new maturity date when you lock-in

Review mortgage details

2
Some of your mortgage conditions may be different so double-check the details

Lock-in your new mortgage

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Your new mortgage rate and term are locked-in
To request an offer for the best available 5-year fixed rate, log into MyRMG and select “Lock-in to a Fixed Rate”

Frequently Asked Questions

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Why do interest rates change?
Interest rates change depending on a wide range of factors. Things such as the Bank of Canada Rate, unemployment, and the economy all play roles in determining interest rates.
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How does a prime rate change affect my mortgage payments?
If you are on an adjustable rate mortgage and if the RMG Prime Rate changes, your mortgage payment will change to reflect the fluctuation in the prime rate.
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How much does it cost to lock-in my mortgage?
It doesn’t cost anything to lock-in your mortgage. If you have an adjustable rate mortgage right now and you lock-into a fixed rate term of equal or greater length, there’s no cost to you.
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Can I keep my current variable rate if I lock-in?
When you lock-in your mortgage, you start a new term, with a new interest rate. What does this mean? Your current adjustable rate mortgage term, including your variable interest rate, will come to an end on the date of your lock-in and your new fixed interest rate will be determined based on the fixed rates available for the term length you choose at the time you to lock-in.
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Are fixed rates higher than variable?
Typically, fixed rates are higher than adjustable rates, but there are instances where the opposite is true. With a fixed interest rate, you will have a consistent payment amount throughout your term and this security typically comes with a higher interest rate. A variable rate can often be lower than fixed rates, but it comes with the potential for fluctuations in your rate, and consequently your payment amount, over the length of the term. Whether or not payment fluctuations are worth the potential for lower payments is up to you as a homeowner; there is no right or wrong choice.
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If I decide that an adjustable rate term is better for me, can I switch back later?
In short, yes, you can move back into an adjustable rate mortgage should you choose to later on, but you may have to pay a penalty to do so before maturity (this is called an early renewal). When you move from an adjustable rate mortgage to a fixed rate mortgage before your maturity date, it’s called a lock-in (or conversion). A penalty will not be charged when you lock-in, but it will be charged when you early renew.
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Will I still have my same Privilege Payment options?
Yes! The same privilege payment options are the available for homeowners in a fixed rate term as for those in an adjustable rate term.
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Will my maturity date remain the same if I lock-in?
When you lock-in your mortgage, your current term ends and you start a new fixed rate term. This new term will come with its own maturity date, determined by the term length you choose.
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Will the prepayment penalty structure change if I lock-in to a fixed term?
Yes, the penalty structure may change if you lock-in to a fixed rate term. Before signing an offer to lock-in your mortgage, it’s important to be fully informed. We recommend reviewing the terms and conditions of the new term, including the prepayment penalty information.
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Should I lock-in now? How much do variable rates really change?
The decision to lock-in your mortgage is one that only you can make. To figure out if you should lock-in, you need to determine what level of rate fluctuation you can tolerate – both financially and emotionally. The prime rate changes in response to changes in the Bank of Canada’s key lending rate. Although you may hear speculations about upcoming rate changes in the news, we can’t know for sure when the rate will in fact change, or by how much, until it happens. Historically, the prime rate increases or decreases by 0.25 - 0.50%.

The strength behind
RMG Mortgages

Find out if an RMG Mortgage is right for you. A professional mortgage broker can help.
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Find out if an RMG Mortgage is right for you. A professional mortgage broker can help.