Royal Bank of Canada (RBC) followed the move by BMO and announced it is also increasing some of its mortgage rates effective, today, June 2, 2009.

The new, updated mortgage rates are as follows:

Special Offers may be changed, withdrawn or extended at any time,
without notice. Not available in combination with any other rate
discounts, offers or promotions.

The other big banks are sure to follow now, but keep in mind that it’s not all bad news, as we are now only 0.20% higher than the lowest fixed costs in history, so it is still a great time to lock in a great fixed rate.

Go compare mortgage rates now to see how RBC’s rates stack up against the rest of the market.

RBC Royal Bank has announced that they have dropped their residential mortgage rates by an average of 0.30% and the changes were effective on April 25, 2009.

The changes are as follows:

Special Offers(*)

In addition, the Royal Bank of Canada announced new mortgage rate specials as follows:

(*) The rates indicated are special discounted rates and are not the
posted rates of Royal Bank of Canada. To calculate a rate discount
compare the Special Offer rate against the posted rate for the
applicable term.

Special Offers may be changed, withdrawn or extended at any time,
without notice. Not available in combination with any other rate
discounts, offers or promotions.

You can compare RBC mortgage rates against the market now.

RBC’s CEO Gordon Nixon announced on Friday that mortgage rates “can go lower, but they can’t go much lower.”

Although that’s great news for mortgage shoppers it’s not great for RBC’s shareholders as Nixon also soad that the widely expected rate cut by the Bank of Canada tomorrow would hurt RBC’s mortgage earnings. “What it does is squeeze our margins dramatically, particularly in our retail and mortgage portfolios,” he said.

Analysts are predicting a 0.25% to 0.50% to Canada’s main interest rate tomorrow and the big banks should follow the rate cute and decrease their Prime lending rates which will then lower variable mortgage rates.

Rates are currently at or near historic lows anyways so it will be a great time to take advantage if you’re in the market for a mortgage.

The Royal Bank of Canada (RBC) also increased mortgage rates on September 26th and effective September 27th 2008. They increased most of their fixed rates by 0.35% including the popular 5 year fixed closed mortgage rate.

The details were as follows:

Special Offers(*)

(*) The rates indicated are special discounted rates and are not the posted
rates of Royal Bank of Canada. To calculate a rate discount compare the
Special Offer rate against the posted rate for the applicable term.

Special Offers may be changed, withdrawn or extended at any time, without
notice. Not available in combination with any other rate discounts, offers or
promotions.