Rbc Locking in Agreement
RBC Locking in Agreement: What You Need to Know
Royal Bank of Canada, commonly known as RBC, is a leading financial institution in Canada, with a wide range of services and products offered to its customers. One of the latest developments from RBC is the announcement of “locking in agreements” for new mortgage customers, effective January 2022. Here`s what you need to know.
What is RBC Locking in Agreement?
RBC`s locking in agreement refers to a new policy that the bank is implementing for new mortgage customers. Essentially, this agreement allows new customers to lock in their mortgage interest rate for up to 120 days, which can potentially protect them from any rate hikes during the mortgage application process.
Why is RBC Introducing this Policy?
The COVID-19 pandemic has created a lot of uncertainty in the financial world, including the mortgage market. Interest rates have been fluctuating, and many potential homebuyers may be hesitant to commit to a mortgage for fear of future rate increases. By offering a locking in agreement, RBC is providing additional peace of mind to customers, potentially encouraging them to move forward with their home purchase.
What are the Benefits of Locking In a Mortgage Rate?
There are several benefits to locking in a mortgage rate, including:
1. Protection from rate hikes: By locking in a rate, you`re protected from any rate hikes that may occur during the application process. This can save you money on your monthly mortgage payments.
2. Budgeting: When you lock in a rate, you know exactly what your monthly mortgage payments will be, which can make it easier to budget your finances.
3. Peace of mind: Locking in a rate can give you peace of mind, knowing that you`re not going to be hit with unexpected rate increases once you`ve committed to a mortgage.
How Can You Take Advantage of RBC`s Locking in Agreement?
If you`re a new mortgage customer with RBC, you can take advantage of the locking in agreement by discussing it with your mortgage specialist. They can walk you through the process and help you decide if it`s the right option for you.
Final Thoughts
RBC`s locking in agreement is a welcome development for potential homebuyers who may be hesitant to commit to a mortgage due to uncertainty in the market. By offering a way to lock in a rate, RBC is providing additional peace of mind and potentially making it easier for customers to move forward with their home purchase. If you`re in the market for a new mortgage, be sure to ask your RBC mortgage specialist about the locking in agreement and how it could benefit you.
