Home
Back
RBC Home Equity Loan Formula:
| From: | To: |
The RBC Home Equity Loan Calculator helps determine how much you can borrow against your home's equity using Royal Bank of Canada's lending criteria. It calculates the maximum loan amount based on your home value, existing mortgage balance, and the loan-to-value ratio.
The calculator uses the RBC home equity loan formula:
Where:
Explanation: This formula calculates how much equity you can access by multiplying your home value by the maximum LTV ratio allowed, then subtracting your existing mortgage balance.
Details: Accurate home equity calculation is essential for financial planning, debt consolidation, home improvements, or major purchases. Understanding your borrowing capacity helps make informed decisions about leveraging your home's value.
Tips: Enter your home's current market value in CAD, the LTV ratio as a decimal (typically 0.80-0.95 depending on RBC's current policies), and your remaining mortgage balance. All values must be positive numbers.
Q1: What Is The Maximum LTV Ratio For RBC Home Equity Loans?
A: RBC typically offers LTV ratios up to 80% for conventional home equity loans, but this can vary based on creditworthiness and property type.
Q2: How Often Should I Recalculate My Home Equity?
A: Recalculate annually or whenever your home value changes significantly, or after making substantial mortgage payments.
Q3: What Costs Are Not Included In This Calculation?
A: This calculator doesn't include closing costs, legal fees, or potential mortgage insurance premiums that may apply.
Q4: Can I Borrow More Than My Calculated Equity?
A: Generally no - RBC lending guidelines restrict borrowing to your available equity based on their LTV limits and credit assessment.
Q5: How Does RBC Determine My Home's Value?
A: RBC typically requires a professional appraisal to determine the current market value of your property for home equity loan purposes.