Mortgage penalty by lender / RBC
RBC mortgage penalty calculator
If your mortgage is with RBC and you are thinking about breaking it early, this page sets out how RBC describes its prepayment charge and lets you estimate the penalty for your own numbers. It is an estimate based on the information you enter. Only RBC can give you the actual figure.
MortgageSkip is independent and is not affiliated with, endorsed by, or acting for RBC. Lender details summarised from RBC’s own published information, last reviewed September 28, 2026.
RBC at a glance
- Fixed-rate closed mortgages
- The greater of three months' interest on the amount prepaid and the interest rate differential (IRD) for the rest of the term.
- Variable-rate closed mortgages
- Three months' interest on the amount prepaid, at the mortgage's interest rate.
- Annual prepayment privileges
- On closed mortgages, RBC describes a prepayment of up to 10% of the original principal once in every 12-month period, and a payment increase of up to 10% once in each 12-month period. It also describes a separate Double-Up payment option. Prepayments within these limits generally carry no charge; amounts above them usually do. Products differ, so you may wish to confirm yours.
- Online penalty calculator
- RBC publishes its own prepayment charge calculator, which is the more authoritative estimate for an existing RBC mortgage. Open RBC’s calculator.
Estimate a RBC penalty
The calculator below is pre-set to the way RBC measures a fixed-rate penalty. Nothing you enter leaves your browser. The result is an estimate, not a quote.
Mode
Enter just the essentials. We'll fill in the rest.
Your current mortgage
Pre-set for RBC, based on how it describes its prepayment charge. You can change it if your contract says otherwise.
Using a posted rate of 6.05% for the 3.0 years you have left, less a discount of 1.84 points worked out from your start date and rate. Posted rates are the big-bank average published by the Bank of Canada, 2026-09-23; your own bank’s may differ.
Minimum savings threshold
Only flag breaking as worthwhile if savings exceed this. Breaking involves legal fees and paperwork, so small savings may not be worth the effort.
Your break analysis
Technically yes — but below your savings threshold
Savings of $14,031 — below your $15,000 threshold
Breaking now would save about $14,031, which is less than the $15,000 you said would make it worth the effort. After legal fees and paperwork it may not be worth your time.
What to consider
Your payment drops by roughly $398 per payment.
Over the comparison window you pay $14,338 less, but owe $307 more at the end.
Estimated break penalty
IRD $9,291 vs 3-month interest $6,745 — IRD applied
IRD measured against 4.21%: posted rate less your original discount, the bank method
Measured the other way the IRD would be $14,798. Lenders differ, and only a payout statement settles it.
$9,291
If you stay
If you break
Balance detail at break date
Penalty uses the Canadian semi-annual compounding standard. Actual lender penalties vary by contract and only your lender can give you a real payout figure.
For informational purposes only — consult a licensed mortgage professional before deciding.
How RBC measures the penalty
RBC describes the fixed-rate charge as the greater of three months' interest and interest for the remainder of the term calculated using the interest rate differential. The IRD is the difference between your interest rate and RBC's posted rate on the prepayment date for a term similar to the time remaining, less the rate reduction you received. For a variable-rate closed mortgage, RBC describes three months' interest. RBC has a separate page for clients who moved to RBC in 2024, whose terms may differ.
In the calculator this is the "big bank or credit union" setting: the interest rate differential is measured against a posted rate for the time left, less the discount you were given when you signed. The calculator uses the Bank of Canada's average big-bank posted rates, and RBC's own posted rates may differ, which is one reason your figure may not match.
Every mortgage contract sets its own terms, and older or specialty products can differ from what a lender publishes today. If the scenario looks worth exploring, you may wish to ask RBC for a payout statement, which is the figure that counts.
Source: RBC, Understanding mortgage prepayment charges. Reviewed September 28, 2026. If something here has changed, we would like to hear about it through the contact page.
Questions about a RBC penalty
- How does RBC calculate its mortgage prepayment penalty?
- For a fixed-rate closed mortgage, RBC describes the charge as: the greater of three months' interest on the amount prepaid and the interest rate differential (IRD) for the rest of the term. The IRD is measured against RBC's posted rate, adjusted for the discount you received when you signed. Your mortgage contract governs, and only RBC can give you the actual figure.
- What is the penalty for breaking a RBC variable-rate mortgage?
- RBC describes the charge on a variable-rate closed mortgage as: three months' interest on the amount prepaid, at the mortgage's interest rate. On a $400,000 balance at 5%, three months' interest is about $5,000.
- How much can I prepay on a RBC mortgage without a penalty?
- On closed mortgages, RBC describes a prepayment of up to 10% of the original principal once in every 12-month period, and a payment increase of up to 10% once in each 12-month period. It also describes a separate Double-Up payment option. Amounts above these limits usually carry a prepayment charge. Privileges differ by product, so you may wish to confirm yours in your mortgage documents.
- Does RBC have its own mortgage penalty calculator?
- Yes. RBC publishes a prepayment charge calculator on its website. For an existing RBC mortgage it is a more authoritative estimate than a general calculator like this one, and a payout statement from RBC is the figure that counts.
- Why might RBC's figure differ from this estimate?
- This calculator uses the Bank of Canada's average big-bank posted rates and the numbers you enter. RBC's own rates, the exact term it compares against, how it counts the days remaining, and any fees can all change the result. These figures are estimates based on the information entered. MortgageSkip is not affiliated with RBC.