RBC Credit Access Line


March 22 – April 30, 2021 promotional financing rate disclaimer

Here’s how it works:

RBC Credit Access Line’s fixed-rate options allow you to lock in rates for a set term. At the end of the term, you have the option to either pay down the outstanding credit advance or have the remaining balance roll to a variable or new fixed-rate term effective that day—subject to the rates at that time.

Promotional rates*

*Promotional rates are as of March 22, 2021, and are subject to change. Rates will not change after a fixed-rate advance has been taken.

Additional details:

  • $25,000 minimum fixed-rate credit advance requirement.
  • Promotional rate is only available March 22–April 30, 2021.
  • Fixed-rate advances may be subject to breakage fees should the advance be paid down early or repayment is demanded due to maintenance requirement violations.
  • Securities-based loans may not be appropriate for everyone and have risks associated, including the risk of having to repay your loan or add collateral if maintenance requirements are not met. Please speak with your financial advisor to determine if a securities-based loan is appropriate and see below for additional disclosures.

After December 31, 2021, the panel banks that submit rates required to calculate the LIBOR will no longer be required to do so. The transition away from LIBOR will require changes to the way that interest is calculated on loans that use the LIBOR as a benchmark. Borrowers with affected loans will be notified of such changes in advance of them taking effect.

RBC Credit Access Line is a securities-based, demand line of credit offered by Royal Bank of Canada, an Equal Opportunity Lender and a bank affiliate of RBC Capital Markets, LLC. Subject to credit approval. Securities-based loans involve special risks and are not suitable for everyone. You should review the provisions of the RBC Credit Access Line agreement and related disclosures, and consult with your own independent tax and legal advisors about any questions you have prior to using RBC Credit Access Line. Considerations should be given to loan requirements, portfolio composition and diversification, time horizon, risk tolerance, portfolio performance expectations, and individual tax situations. There are important risks associated with securities-based loans that you should consider:

  • You will be required to deposit additional cash or securities, or pay down the line of credit, should the value of your securities decline below the percentage equity you must maintain or the percentage equity you must maintain increase. During a market downturn in which the securities in your portfolio decline in value, the percentage equity you must maintain will cause your losses to be greater than if there were no loan against your portfolio. Your losses can exceed your original collateral amount. 
  • You are not entitled to an extension of time to satisfy equity percentage requirements.
  • Should you be unable to maintain the required percentage equity, some or all of your securities may be sold without prior notice to you. In the event of such a sale, you will not be entitled to choose which securities are sold, your long-term investment strategy may be interrupted and you will be responsible for all resulting fees and tax consequences.
  • Royal Bank of Canada may increase equity percentage requirements at any time without prior notice to you and may require you to pay down your line of credit, in part or in full, at any time and for any or no reason.
  • The rates, terms and conditions of your RBC Credit Access Line are subject to change in accordance with the terms of the RBC Credit Access Line agreement.
  • Should the rate of your RBC Credit Access Line be set to float against an index, you will be subject to greater interest costs in a rising interest rate environment.

RBC Credit Access Line is a non-purpose facility. The proceeds of an RBC Credit Access Line may not be used to purchase, trade, or carry margin stock or repay a margin debt that was used to purchase, trade, or carry margin stock. Royal Bank of Canada may demand repayment of all proceeds of RBC Credit Access Line advances that it has reasonable basis to believe were used to purchase or carry margin stock.

RBC Wealth Management, a division of RBC Capital Markets, LLC, is a registered Broker-Dealer, Member FINRA/NYSE/SIPC, and is not a bank. Where appropriate, RBC Capital Markets, LLC has entered into arrangements with the Royal Bank of Canada to help facilitate and service your RBC Credit Access Line. RBC Capital Markets, LLC and its affiliates and their employees do not provide tax or legal advice.

The California Consumer Privacy Act is a data privacy rights law that becomes effective January 1, 2020. This law requires businesses to disclose the categories of personal information they have collected about consumers in California, the purpose for collecting this information and whether this information is sold. Consumers have the right to request data that RBC WM NY Credit Branch has collected on them and may request that RBC WM NY Credit Branch delete data pertaining to them.

You may submit a verifiable consumer request after January 1, 2020 by contacting us by telephone at 844-937-2296 between 8:00 a.m. and 4:30 p.m. Central Time or by following this link to make a consumer request.

Once your request is verified, we will promptly take steps to disclose and deliver, free of charge to you, the personal information required by the CCPA. We will deliver the information to you by mail or electronically within 45 days of receipt of your request, or such additional time as may be permitted under the CCPA.

 

Investment and insurance products offered through RBC Wealth Management are not insured by the FDIC or any other federal government agency, are not deposits or other obligations of, or guaranteed by, a bank or any bank affiliate, and are subject to investment risks, including possible loss of the principal amount invested.