RMG Mortgage Review, Rates 2024
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Discover the methodologyIf you're looking for a mortgage lender that goes beyond traditional options, RMG Mortgages might be just what you need. Known for its competitive rates and flexible solutions, RMG caters to everyone from first-time buyers to self-employed individuals. But is it the right fit for you?
Read our complete RMG Mortgage review to discover the benefits, drawbacks, and expert insights to help you make an informed decision.
RMG Mortgage: Key Takeaways
- RMG Mortgage is part of the biggest independent Mortgage Finance company in Canada
- Offers attractive fixed and variable rates, especially for unique income situations.
- Includes options like the Bank Statement Program for self-employed borrowers and Cash Back Program.
- Allows additional payments without penalty to pay down your mortgage faster.
- Entirely managed online, which is convenient but lacks in-person support.
Our RMG Mortgage Review
RMG Mortgage is not your normal bank or mortgage lender. It is part of MCAP Financial Corporation which is the largest independent Mortgage Finance Company in Canada. With its numerous offerings, all targeted at residential borrowers, RMG Mortgage has the reach and financial backing to offer some of the most competitive rates in the market.
But, the company’s strong financial background isn’t the most important factor when considering an RMG Mortgage, nor should it be the deciding one. Instead, our research found that the key advantage of RMG Mortgage lies in its customer service.
Out of 244 RMG Mortgage reviews on Google, the company has an incredible 4.4 out of 5-star rating. The vast majority of these positive reviews highlight customer support and communication as the most valuable aspects of their interaction with RMG Mortgage.
Other benefits also include:
- Providing competitive rates
- An excellent online portal making managing the loan easy
- Helpful and an easy to navigate website
- Efficiency when it comes to applications and mortgage renewals
- Ongoing communication throughout the mortgage term
Of course, not all feedback is positive. Those who were disappointed with RMG Mortgage mentioned the pay-out penalty fees associated with the early discharge of the mortgage. However, as these are customary fees with most mortgages, they don’t affect our overall positive review of RMG Mortgage.
Expert advice
RMG Mortgage is best for borrowers with unconventional income, such as the self-employed or new Canadians, who may not qualify for traditional bank mortgages. It's also a good fit for those looking to access alternative financing options with more flexibility. However, consider RMG only if you’re comfortable with online management and are aware of potential high penalties if you need to change terms mid-contract.
It is important to always review multiple options before finalizing such an important financial decision as a mortgage. You can use HelloSafe’s online mortgage comparison tool below to find the best option for you.
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What are the pros and cons of RMG Mortgage?
Advantages of RMG Mortgage
- Lower Rates for Specific Situations: Offers competitive rates, especially for those who might not get the best deals from traditional banks.
- Specialized Programs: Has tailored options for self-employed borrowers and new Canadians, making it easier to qualify.
- Flexible Payment Options: Lets you pay extra towards your mortgage without penalty, which can help pay it off faster.
Disadvantages of RMG Mortgage
- High Fees for Changes: Prepayment penalties can be expensive, making it costly to break or change your mortgage.
- Customer Service Concerns: Some customers have reported difficulty resolving issues and unexpected fee changes.
- No Physical Branches: Everything is done online or over the phone, which may not be ideal if you prefer in-person service.
What are the RMG Mortgage Rates in Canada?
The current RMG Mortgage rate is 6.45%, effective September 5, 2024, and applies to all RMG adjustable rate mortgages. However, when the Bank of Canada adjusts the prime rate, then RMG Mortgage will make the same changes to its annual interest rate. When the RMG prime rate does change, all customers to whom the change affects will receive a letter advising of the new rate and its effective date.
Unfortunately, RMG fixed mortgage rates aren’t made available on the company’s website or online via third parties. As such, to get a quote on an RMG mortgage 5-year fixed rate, for example, you will have to contact a licensed advisor directly. The easiest way to get the cheapest rate is to dial RMG’s phone number (866-809-5800) and speak to an advisor.
How does a Prime Rate change affect mortgage payments?
If you have an adjustable-rate mortgage, this means that your home loan is offered at a variable (fluctuating) rate. As such, your interest rate can and will fluctuate when the Bank of Canada changes its overnight rate.
Increases to the prime rate will lead to increases in your mortgage payments, and vice versa. Recently, the Bank of Canada stated that they would decrease the overnight rate to 6.45% and your RMG adjustable mortgage rate will have been updated to reflect the same.
You must compare multiple options before taking out a mortgage. Use our free tool below to compare the best mortgage rates in Canada online. Get instant results based on your unique needs in seconds.
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Is the RMG Mortgage calculator good?
Among the various tools and resources provided on its website, the RMG Mortgage calculator stands out as one of the best. By adjusting any number of values, you can easily calculate how much your loan will cost every month, alongside a clear breakdown of the amount of interest paid in total.
In addition, RMG Mortgage’s mortgage payment calculator includes a full breakdown of the numerous terms used when calculating your mortgage, giving even beginners a clear understanding of the process.
How much mortgage can I afford?
The only one who knows how much mortgage you can afford is you; but, a mortgage affordability calculator can help you determine what your monthly mortgage payments will look like.
Before finalizing any mortgage, use an online calculator to ensure that you can comfortably make the monthly payments and take this next step from a place of financial clarity.
What does RMG Mortgage offer?
RMG Mortgage can help individuals find the perfect mortgage for nearly any residential property or unique financial situation. Because, regardless of whether they want the predictability of an RMG fixed mortgage rate or the potential savings offered by a variable-rate mortgage, RMG offer numerous programs that most Canadians can tap into.
The programs include the following and have been broken down below.
- Residential Mortgages
- Bridge Financing Program
- Cash Back Program
- MCAP Safeguard Mortgage
- Borrowed Down Payment Plan
RMG Residential Mortgages
RMG residential mortgages include both fixed and variable-rate solutions. The key aspect of these offerings is the flexibility to choose from 1-5 year terms, depending on financial needs.
Furthermore, in order to save on additional costs, borrowers can opt out of certain features in order to lower the interest rate and, thereby, save further costs on monthly instalments. RMG residential mortgages are, therefore, optimal for first-time home buyers seeking low 5-year fixed rate mortgages.
Additional benefits include:
- Weekly, bi-weekly, semi-monthly or monthly payment options
- 20% lump sum pre-payment solution per year without penalties
- Increase payment privileges
RMG Bridge Financing Program
RMG’s Bridge Financing solution provides individuals with a loan needed to secure a new home before the closing date of the current property. This is a short-term financing solution which provides homeowners with peace of mind and effectively allows the borrower to secure the loan against their current residence.
As the term indicates, this loan is to bridge the gap between house sale and purchase and terms include:
- A maximum term of 45 days (or 120 days if RMG can secure collateral)
- Minimum bridge amount of $5,000.00 with the maximum being the lesser of the purchase price minus the mortgage amount or sale price minus the existing outstanding mortgage
- If over $150,000, the loan must be registered as collateral second mortgage on the current property
RMG Cash Back Program
This cash back solution provides borrowers a way to manage the associated costs of buying a home by offering up to 3% cash back on the total mortgage amount. These funds can help pay for things like:
- Closing costs
- Renovations
- Furniture or moving costs
It should be noted, however, that the cash back amount cannot be put towards the down payment on the property and if the mortgage is ever discharged or refinanced, the borrower may have to repay some of the cash back principal.
RMG Safeguard Mortgage
Officially the MCAP Safeguard Mortgage program, this solution allows borrowers with the possibility of securing a second mortgage without having to break their current mortgage contract.
It is perfect for those who want to free up equity in their property without the need to refinance and, thus, does not incur early payout fees or similar. MCAP Safeguard Mortgage is great for RMG homeowners because:
- It is an easy solution for a second mortgage which is added to a current RMG loan
- Provides equity at competitive RMG mortgage rates
- Does not require refinancing of a current loan
- Avoids any penalties or payout fees
RMG Borrowed Down Payment Plan
Simply put, RMG’s Borrowed Down Payment program allows homebuyers to borrow money to put toward the down payment of their new home as long as the money comes from the following eligible sources:
- Personal loans
- Lines of credit
- Credit cards
- Gifts from non-immediate family
The only requirements are that the borrowers has a minimum 650 credit score, no bankruptcies or judgements, nor income tax arrears. Additionally, this program only applies for LTV mortgages from 90.01-95% and a loan amount between $50,000-$924,999.99 where the property will be owner-occupied.
Too many options to consider? Don’t know if RMG Mortgage is right for you? Try HelloSafe’s online mortgage comparison tool to get the help you need to find the solution that best suits you!
Compare mortgage rates now
Good to know
If you prefer managing your mortgage digitally, you can also explore options like Nesto Mortgage and Rocket Mortgage, both of which adopt a digital-first approach.
How does RMG Mortgage Renewal work?
RMG make the renewal process easy. Roughly 90 days prior to the end date of the mortgage, aka mortgage maturity date, borrowers will receive an introduction letter in the post and via their RMG Mortgage login (MyRMG). This introduction letter will provide details of their Renewal Specialist, alongside information regarding renewal interest rates and payment options.
All borrowers have to do, is choose the term and rate that suits their financial needs at the time, and mail, fax or email the offer letter back to RMG. If the terms or RMG renewal rates do not suit the borrower, they can simply contact their renewal specialist to discuss alternative options.
What happens if you miss the renewal date?
Missing the mortgage renewal date is a common occurrence. When the mortgage maturity date is missed and RMG renewal terms have not been confirmed, then a borrower's mortgage will automatically renew on a 6-month closed fixed rate convertible term.
This solution allows borrowers to simply convert into an RMG fixed rate mortgage at any time without penalties, but it does come with a higher interest rate at the outset.
What happens during mortgage renewals?
When your current mortgage is about to expire, it is called reaching maturity. At this point, borrowers get the option of either renewing the mortgage with the current lender or seeking out another mortgage provider.
Navigating renewals can be tricky due to payout penalties, so HelloSafe put together the following guide on How Mortgage Renewals Work to help you with the process.
How to contact RMG Mortgage Customer Service?
To speak to RMG’s customer service simply use any of the contact methods below.
| Method of Contact | RMG Mortgage Contact Details |
|---|---|
| Phone Number | 866-809-5800 (toll-free) |
| Fax Number | 866-371-0132 (toll-free) |
| Email address | [email protected] |
| Mail Address | RMG Mortgages Servicing Centre P.O. Box 351, STN C Kitchener, ON N2G 3Y9 |
How to use RMG Mortgage Login?
Homeowners with a current RMG Mortgage can also login using the dedicated online RMG Mortgage portal: MyRMG. Through the MyRMG mortgage login, customers can:
- Update payment details
- Review current account balance
- Make prepayments if available
- Manage renewals
- Convert between mortgage solutions
- Find more mortgage resources
