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Rohan – Account Manager: We all run into periods in our life where the unexpected happens. It happens to all of us.
Sometimes it affects our finances or cashflow negatively. With an RBC mortgage, we have you covered with our flexible payment options.
With this option, you may be covered if you need to miss a payment or if you're unable to keep up with your payments because your financial
circumstances have changed. How does it work? Well, once every 12 months you have the option to skip mortgage payments (principal and interest),
provided that: The mortgage is not be in arrears, and your current mortgage balance, together with the amount of the payments you wish to skip,
does not exceed the original amount of your mortgage. You can skip one monthly mortgage payment or the equivalent of one monthly mortgage
payment. That means you can skip up to four consecutive weekly payments, or up to two consecutive bi-weekly or semi-monthly payments. You will still
be responsible for paying your usual HomeProtector insurance premiums and property tax installments, where applicable. There is no
fee for this option, and your payments won't change during the term of your mortgage. Instead, any skipped interest is added to the principal balance.
And if your circumstances change again, and if you wish, you can repay your skipped payment anytime during the term of your mortgage.
One thing you need to keep in mind is that you may significantly increase your interest costs over the life of your mortgage, so it's important
to carefully evaluate your financial situation and priorities with us before exercising this option. As an example, if you have a $100,000 mortgage,
with a rate of 6%, with an amortization of 25 years, your monthly principal and interest payment would be approximately $639.81.
This would be the amount you could be eligible to skip in a year. If you chose to skip this payment, and did not pay it back, you could pay
over $2,000 in additional interest payments over the entire mortgage. Depending on the type of mortgage you have there could be some
restrictions. So if this is something you want to take advantage of, or you are interested in knowing a little more about it, just give us a call!