RFA has become a significant player in the Canadian mortgage market since entering residential lending in 2018. As a prime lender and also a B lender offering both prime and alternative mortgage solutions, RFA provides competitive rates and flexible options for various borrower profiles.
This review examines RFA’s current mortgage rates, product offerings, and application requirements to help you determine if RFA aligns with your financial needs and homeownership goals.
What is RFA Mortgage?
Founded in 1996, RFA (Realty Financial Advisors) is an investment firm focused on commercial real estate. The company significantly expanded its operations in 2018 by entering the residential lending market through mortgage brokers. In 2019, RFA made a strategic acquisition of Street Capital Bank of Canada.
The organizational structure of RFA includes two main divisions:
- RFA Mortgage Corporation – Specializes in Prime mortgages
- RFA Bank of Canada – Focuses on alternative mortgage lending
This dual structure allows RFA to serve a wide range of borrowers, from those with excellent credit seeking prime rates to individuals who may not qualify for traditional financing but still deserve access to homeownership.
RFA currently offers residential mortgages in all Canadian provinces except Quebec. Their business model primarily operates through mortgage brokers rather than direct consumer advertising, allowing them to minimize customer acquisition costs and offer competitive rates.
In addition to mortgages, RFA also provides Guaranteed Investment Certificates (GICs), though these are only available through investment advisors and deposit dealers. [Source]
What Mortgage Products Does RFA Offer?
RFA offers a wide range of mortgage products tailored to meet the diverse needs of borrowers. The following table outlines RFA’s main mortgage products:
RFA Fixed Rate Mortgage
The fixed-rate mortgage from RFA maintains the same interest rate throughout the entire loan term. RFA fixed term includes 1-year, 2-year, 3-year, 4-year, 5-year, and 10-year terms.
Your monthly payments remain consistent, providing certainty on both payments and loan balance. This option eliminates surprises, allowing you to know exactly what you’ll pay each month for the duration of your term.
RFA Variable Rate Mortgage
With a 5-year variable-rate mortgage, your interest rate changes whenever the RFA’s Prime Rate fluctuates. This means your monthly payments will vary over time, unlike fixed-rate mortgages, where payments stay consistent. These mortgages offer potential for lower payments if rates drop, but you’ll face higher payments if rates increase.
RFA Open Mortgage and Closed Mortgage
RFA open mortgages come with higher interest rates compared to closed mortgages, but they offer valuable flexibility for those anticipating early repayment or planning substantial lump sum payments.
RFA closed mortgages feature lower interest rates. However, prepayment penalties apply if you exceed the allowed prepayment privileges. RFA offers a generous 20% annual prepayment allowance, which exceeds the offerings of many competitors.
Pine Alternative Mortgages
For borrowers who don’t qualify for prime mortgages, RFA Bank of Canada offers alternative mortgage solutions with more flexible qualification criteria. These mortgages cater to borrowers with credit challenges and accommodate self-employed individuals or those with non-traditional income sources. Alternative mortgages typically come with higher interest rates to offset increased lending risk and usually require larger down payments of 20% or more.
Choosing the Right RFA Mortgage
When considering which RFA mortgage type suits you best, carefully evaluate your financial stability and income reliability. Consider your risk tolerance for interest rate fluctuations and your future plans for the property. Your ability to make prepayments and preference for payment certainty versus potential savings should also factor into your decision.
If you prioritize payment certainty and plan to stay in your home long-term, a fixed-rate mortgage might serve you best. If you believe interest rates will decrease and can tolerate some risk, an adjustable or variable rate might save you money over time.
For individuals with unique financial situations or self-employment income, RFA’s alternative lending options offer pathways to homeownership that may not be available through traditional prime lending channels.
What Are RFA’s Current Mortgage Rates?
RFA’s mortgage rates are influenced by the Bank of Canada’s prime rate, which stands at 4.95% as of April 2025. While RFA does not publicly list all its mortgage rates on its website, it is known for offering competitive rates across its mortgage products.
The actual rate you’ll receive depends on several factors, including:
- Your credit score
- Your debt service ratios
- The mortgage type (prime vs. alternative)
- The loan-to-value ratio
- The amortization period
- The property type and value
For the most accurate and up-to-date rates
- Contact RFA directly through their customer service department at 647.259.7873 or 1.877.416.7873, or by emailing SM-CustomerService@rfabank.ca.
- Work with a mortgage broker who has access to RFA’s current rate offerings.
When evaluating RFA’s rates, remember that the lowest rate isn’t always the best mortgage solution. Consider other factors, such as prepayment privileges, penalties, and flexibility, that may be more important for your specific situation.
What Are RFA Mortgage Features?
Understanding the features of RFA Mortgages can save you thousands of dollars over the life of your mortgage.
RFA Mortgage Prepayment Privileges
RFA offers prepayment privileges totalling 20% of the original principal per year, helping you pay down your mortgage faster while avoiding penalties. This is considered generous within the Canadian mortgage industry, offering borrowers significant flexibility to accelerate their mortgage payoff.
These prepayment privileges can be used in two ways:
- Increasing your regular payment amount (up to 20% annually)
- Making lump-sum payments (up to 20% of the original principal annually)
RFA Mortgage Prepayment Penalties
If you need to prepay more than the allowed 20% annual privilege, penalties will apply:
- For Fixed-Rate Mortgages: The greater of three months’ interest or the Interest Rate Differential (IRD). The IRD calculates the interest the lender would lose by lending the prepaid amount at current rates rather than at your contracted rate.
- For Adjustable-Rate and Variable-Rate Mortgages: Three months’ interest on the amount exceeding your prepayment privilege.
Avoiding RFA Prepayment Penalties
RFA offers two options to avoid prepayment penalties when selling your home:
- Mortgage porting: Transfer your existing mortgage to a new property within a specified timeframe. This allows you to maintain your current rate and terms while changing the collateral property. RFA even allows you to increase your mortgage balance with a new blended rate.
- Mortgage assumption: Have the purchaser of your property take over your existing mortgage, provided they qualify under RFA’s lending criteria.
These flexibility features make RFA mortgages attractive to homeowners who anticipate changing properties before their mortgage term ends, or who expect to have extra funds to put toward their mortgage.
When considering an RFA mortgage, carefully review the prepayment terms in your mortgage contract, as they can significantly impact your long-term financial strategy, especially if you plan to sell your home or expect windfalls, such as an inheritance or bonus, that could be used to pay down your mortgage.
Refer to our guides on other mortgage lenders in Canada to see how RFA Differ
How to Qualify for an RFA Mortgage?
Qualifying for an RFA mortgage depends on whether you’re applying for a prime mortgage through RFA Mortgage Corporation or an alternative mortgage through RFA Bank of Canada. Each path has different qualification criteria.
Qualify for RFA Prime Mortgages
You typically need:
- Credit score of 660 or higher
- Gross Debt Service (GDS) ratio below 39%
- Total Debt Service (TDS) ratio of at most 44%
- Ability to pass the mortgage stress test
- Stable employment and income history
- Sufficient down payment (minimum 5% for properties under $500,000)
The mortgage stress test requires that you qualify at either the Bank of Canada’s benchmark rate or your contract rate plus 2%, whichever is higher. This ensures you can handle potential interest rate increases in the future.
Qualify for RFA Alternative Mortgages
If you don’t meet the criteria for a prime mortgage, RFA Bank of Canada offers alternative solutions with:
- More flexible credit score requirements
- Higher tolerance for debt service ratios
- Consideration of non-traditional income sources
- Typically, higher interest rates are used to offset increased lending risk
- Usually require larger down payments (20% or more)
How Can You Manage RFA Mortgage Online?
RFA provides a convenient online portal called MyRFA that allows borrowers to manage their mortgages digitally. This self-service platform offers numerous features to simplify mortgage management.
The MyRFA portal provides access to:
- Review and update personal details
- Check mortgage balance and payment history
- Make lump sum payments toward your principal
- Manage property tax payments
- Change payment details and frequency
- Access mortgage statements and tax documents
The MyRFA portal is designed to be user-friendly and secure, with encryption protecting your personal and financial information. Regular system updates ensure the platform remains secure and functional.
For those who prefer traditional management methods, RFA continues to offer phone and mail options for handling mortgage-related matters. However, the online portal provides the most immediate access to your mortgage information and the greatest flexibility for making changes to your account.
Frequently Asked Questions About RFA Mortgages
Is RFA a reputable lender?
Yes, RFA is a reputable Canadian financial institution. RFA is federally regulated by the Office of the Superintendent of Financial Institutions (OSFI), providing an additional layer of oversight and consumer protection. Their GICs are eligible for CDIC insurance, making them as secure as those offered by major Canadian banks.
Are RFA mortgages available to first-time homebuyers?
Yes, RFA offers mortgage options suitable for first-time homebuyers, including high-ratio mortgages for those with down payments as low as 5%.
Can I make extra payments on my RFA mortgage?
Yes, RFA offers generous prepayment privileges totaling 20% of the original principal per year. You can use these privileges to increase your regular payment amount or make lump-sum payments toward your principal. These prepayments directly reduce your principal balance and the total interest you'll pay over the life of your mortgage. Payments exceeding the 20% annual allowance will incur prepayment penalties.
How long does the RFA mortgage application process take?
The RFA mortgage application process typically takes 5-10 business days from application submission to approval, although this timeline can vary depending on your specific situation and current application volumes. Working with a mortgage broker who has an established relationship with RFA may help expedite the process. Once approved, the closing timeline depends on your purchase agreement or refinancing needs, but generally takes 2-4 weeks to complete all legal requirements and fund the mortgage.
Can I access RFA mortgages directly or only through brokers?
While RFA primarily distributes its mortgages through the broker channel, the public can also obtain a mortgage directly from RFA. To apply directly, you can contact RFA's customer service department by email at SM-CustomerService@rfabank.ca or by phone at 647.259.7873 or 1.877.416.7873. They will refer you to the sales department to discuss your mortgage needs.
The Bottom Line
As with any major financial decision, comparing offerings from multiple lenders and consulting with a mortgage professional can help ensure you find the best mortgage solution for your specific needs and financial situation.
Key strengths of RFA include its dual structure, which allows it to serve a diverse range of borrowers, its 20% annual prepayment privilege, and its collaborative approach with mortgage brokers.
Working with a mortgage broker like BestMO Mortgage can help you navigate RFA’s product offerings and identify the mortgage type that best aligns with your financial goals and circumstances.
