RBC lowered their mortgage rates again, and they are effective today, December 9, 2009. This comes the day after the Bank of Canada announced they were keeping the target for the overnight rate steady @ 0.25%.

Fixed Rate Mortgages

One-year closed: 3.40% (-0.20%)

Four-year closed: 5.14% (-0.05%)

Five-year closed: 5.49% (-0.10%)

Special Fixed Rate Offers*

Four-year closed: 4.09% (-0.05%)

Five-year closed : 4.19% (-0.10%)

Variable Rate Mortgages

Variable Closed RBC Prime + 0.00% (no change)

See how these mortgage rates changes stack up against the rest of the market and compare mortgage rates now.

* 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Special Offers may be changed, withdrawn or extended at any time,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.

RBC moved to increase its fixed rate mortgages yesterday as follows:

Fixed mortgage rates

Variable rate mortgages

Variable Closed RBC Prime + 0.00% (no change)

Special rate 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Special Offers may be changed, withdrawn or extended at any time,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.

Now lets watch to see when the other banks follow suit.

Check out how these rates compare versus the rest of the market and compare mortage rates now.

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Special Offers may be changed, withdrawn or extended at any time,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’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.

RBC announced on Wednesday August 6th, 2008 that they were decreasing mortgage rates as of yesterday.  The changes are as follows:

Special offers

Go Compare mortgage rates to see how these new rates stack up against the other top lenders and brokers in Canada.