RBC – Pre-Authorized Payment Agreement

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What Is a Pre-Authorized Payment Agreement?

If your mortgage lender has asked you for a Pre-Authorized Payment Agreement (RBC) and you’re not sure what it is, you’re not alone.

Whether you’re buying a home, refinancing, or renewing a mortgage in Canada, lenders require this agreement to set up automatic mortgage payments from your RBC bank account. Once authorized, your mortgage payments are withdrawn automatically — on time, without manual transfers.

What Exactly Is a Pre-Authorized Payment Agreement?

A Pre-Authorized Payment Agreement is a written authorization that allows your mortgage lender to withdraw your mortgage payments directly from your RBC chequing or savings account.

With this agreement in place:

  • Payments are automatically debited on the agreed schedule
  • You don’t need to send monthly payments manually
  • Your mortgage stays in good standing with consistent on-time payments

Why Do Lenders Ask for an RBC Pre-Authorized Payment Agreement?

Mortgage lenders request this agreement to:

  • Ensure mortgage payments are made on time
  • Reduce the risk of missed or late payments
  • Confirm banking information matches the borrower

For RBC clients, this agreement works alongside a void cheque, PAD form, or RBC account details document.

What Your RBC Agreement Will Include

Your Pre-Authorized Payment Agreement using an RBC account typically includes:

  • Your full name as shown on your RBC account
  • RBC institution number, transit number, and account number
  • Mortgage payment amount and frequency
  • Your authorization permitting automatic withdrawals

What If You Change Your RBC Account?

If you switch RBC accounts or change banks:

  • You must submit updated banking details
  • A new authorization may be required
  • Payments will not transfer automatically without re-authorization

What If You Change Your RBC Account?

If you switch RBC accounts or change banks:

  • You must submit updated banking details
  • A new authorization may be required
  • Payments will not transfer automatically without re-authorization

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