RBC Royal Bank mortgage penalty calculator.
Estimate the penalty to break an RBC Royal Bank fixed mortgage. RBC Royal Bank charges the greater of three months' interest or a posted-rate IRD, which subtracts the discount you got at signing from RBC Royal Bank's current posted rate — why Big-6 penalties often run far higher than a monoline's. Mortgage Squad Advisors is an independent brokerage and is not affiliated with, endorsed by or sponsored by RBC Royal Bank. RBC Royal Bank marks are trademarks of Royal Bank of Canada. Estimates only; your bank’s written payout statement or commitment is final. Rates are illustrative scenarios as of October 2026, not verified bank rates; check the bank’s site or enter your written quote.
Fact-checked by Surrayya Afzal, Principal Broker, FSRA #M14001433· Last reviewed October 2026 · Reviewed monthly
To break an RBC Royal Bank fixed mortgage you pay the greater of three months' interest or posted-rate IRD. Because RBC Royal Bank measures your contract rate against its current posted rate for the remaining term minus the discount you received at signing, the comparison rate is low and the IRD can run into five figures — often far more than a monoline lender’s IRD, which usually compares against its current offered rate rather than a posted rate on the same balance. Enter your balance, rate and months left for an estimate; the exact figure needs RBC Royal Bank's written payout statement.
Your inputs
Which penalty applies?
RBC Royal Bank charges the greater of these two — the highlighted bar is your penalty.
Mortgage Squad Advisors · FSRA #13737 · Licensed in Ontario only.
Lender-ready summary, your assumptions baked in, and a personalized note from an advisor at Mortgage Squad Advisors.
Breaking an RBC Royal Bank mortgage: what the penalty really is
When you break a closed RBC Royal Bank fixed mortgage before maturity, RBC Royal Bank charges the greater of three months’ interest or the Interest Rate Differential (IRD). Three months’ interest is simple — roughly your balance times your rate, divided by four. The IRD is where RBC Royal Bank, like every Big-6 bank, gets expensive: it uses a posted-rate comparison. RBC Royal Bank takes its current posted rate for a term close to the time left on yours (the 6.84% default is an illustrative scenario, not a verified current rate) and subtracts the discount you received when you signed. That lower comparison rate widens the gap against your contract rate, and the gap, prorated over the months left in your term, is what can push RBC Royal Bank penalties into five figures on a balance where a lender using its discounted rates would charge much less.
Why the RBC number surprises people
RBC uses a posted rate for a term similar to the time remaining, with the same prepayment options, minus the original rate reduction. For 28 months, check the two-year comparison rate on your payout statement. RBC permits 10% and 10% or 20% and 20% depending on the product. Check your own mortgage terms. The penalty is largest early in the term — because IRD scales with the months remaining — and shrinks toward maturity, at which point three months’ interest eventually becomes the bigger of the two. The single most important thing to know is that the estimate above is only as good as the comparison rateRBC Royal Bank plugs in, and that figure is confirmed only in a written payout statement. Get one before you commit to anything.
Your exit options
You have more room than the payout statement implies. If you’re moving, port the mortgage to the new property — most RBC Royal Bank products allow it with no penalty. If you just want a better rate, ask RBC Royal Bank to blend-and-extend rather than break. Use your annual prepayment privilege to shrink the balance first. And the cleanest exit is always to wait for renewal, where there is never a penalty. If breaking still makes sense, run the figure through the refinance calculator to confirm the savings clear the penalty — then send us the payout statement and we’ll verify the real number and line up your exit across 100+ lenders.
How does RBC Royal Bank calculate the prepayment penalty?
Why is the RBC Royal Bank penalty so much higher than a monoline's?
What's the exact RBC Royal Bank payout — can I trust this estimate?
How can I avoid or reduce the RBC Royal Bank penalty?
Is breaking my RBC Royal Bank mortgage worth the penalty?
Does RBC Royal Bank use a collateral charge — and does that matter?
Have a question right now? Maya, our AI assistant, answers instantly in 50+ languages. Your licensed advisor is a call away.
Ready to turn this estimate into a real rate?
Same number, confirmed against 100+ lenders. Start with a 5-minute pre-qualification — no credit pull to begin, no obligation. Or ask Maya in 50+ languages.