Compare National Bank Mortgage Rates in Canada
Whether you’re considering a fixed or variable mortgage, CompareMortgages.ca provides up-to-date National Bank rates alongside offerings from other major Canadian lenders.
Our platform ensures you have access to the most competitive mortgage options that suit your financial goals and budget. Why limit yourself to a single lender when we can help you compare multiple options quickly and easily?
Key Highlights
- National Bank offers a variety of mortgage products, including a Variable Capped-Rate mortgage and a Self-Employed mortgage.
- Borrowers can prepay up to 10% of the original mortgage principal annually without penalty.
- Pre-approvals lock in your rate for up to 90 days.
Compare National Bank Mortgage Rates
Below is a table displaying the best rates from the five largest banks in the country. You can easily compare the rates offered by major Canadian lenders and banks, including TD, RBC, CIBC and Scotiabank. We do the research to guarantee you the lowest possible rates upfront every time.
Compare Big Bank Rates
Securing Canada’s most favourable mortgage or loan terms starts with comparing rates from big banks. Interest rates and promotional offers can vary significantly, potentially leading to substantial savings over the life of your loan.
Take Action Today:
- Explore Multiple Options: Don’t settle for the first offer. Research rates from various top lenders and banks across Canada to identify the most competitive options.
- Consider Your Financial Needs: Assess your budget, financial goals, and risk tolerance to determine the loan term and type that best suits you.
- Make an Informed Decision: With comprehensive rate comparisons, make a confident choice that matches your financial needs.
Comparing rates can translate to significant savings and a more favourable financial future.
National Bank Overview & Stock Information
Established in 1859, National Bank was formed by a group of Quebec City businessmen to serve the French-speaking community. Through mergers and acquisitions, National Bank has become Canada’s sixth-largest bank of the “Big 6″ and remains the leading bank in Quebec.
Stock information
Listed on the Toronto Stock Exchange: TSE: NA
What to Know About National Bank Mortgage Posted Rates
National Bank’s posted rates are used to calculate prepayment penalties. Borrowers are typically offered a discount from the posted rate when obtaining a mortgage.
National Bank’s advertised rates may differ from those offered through mortgage specialists or in-branch. Special offers, promotional rates, or alternative channel discounts often offer lower pricing than advertised. The actual rate you will be offered depends on personal factors like your mortgage amount, loan-to-value (LTV) ratio, property type, risk profile, and credit profile.
National Bank also offers cashback if you meet the eligibility criteria. However, this incentive may come with higher rates or require repayment (clawback) of the cashback if you break your mortgage before the end of the term.
National Bank Mortgage Products
Fixed-rate mortgages at National Bank offer stability and peace of mind by setting your rate as soon as you take out your mortgage, allowing you to know exactly how much your mortgage payment will be over the term. National Bank offers closed fixed mortgages of 1-month, 3-month, 6-month,1, 2, 3, 4, 5, 6, 7, and 10-year terms and 6-month and 1-year terms on open fixed mortgages. Each mortgage payment will remain the same over the mortgage term and comprises a principal and interest component. You must renegotiate a new interest rate at the end of each term.
Adjustable-rate mortgages (ARM) at National Bank offer interest rates based on the National Bank prime rate, which adjusts each month and may increase or decrease over the mortgage term based on changes to the BoC policy rate. You only have the option of a 5-year closed variable term at National Bank.
Variable mortgages at National Bank have payments that can fluctuate over your mortgage term, based on changes to interest rates. If interest rates rise, your mortgage payment will adjust to cover the new interest rate, while the principal portion of your mortgage payment will remain the same. If interest rates fall, your mortgage payment will adjust and reduce as the new interest paid will be lower, while the principal portion of your mortgage payment will remain the same.
Besides the typical core mortgage products offered by most banks, National Bank also provides a variety of other mortgage products, including:
Capped-Rate Mortgage
This ARM will protect you if rates increase significantly. The interest rate will fluctuate with changes to the policy rate and the National Bank’s prime rate, so when rates decrease, more will go toward principal and less to interest, helping you pay off your mortgage faster. However, if rates increase significantly, they won’t exceed the threshold established when you take out the mortgage, protecting you from higher rates.
All-In-One Mortgage
This collateral charge mortgage allows you to use the equity in your home as you pay down your mortgage. This mortgage solution lets you finance your home purchase and access your repaid principal without applying for another loan. You can borrow up to 80% of your home’s value, up to 65% of which can be set up as a revolving credit.
Self-Employed Worker Mortgage
This mortgage is for small business owners or self-employed individuals unable to provide standard proof of income to qualify for a mortgage. To be eligible, you must have been self-employed or a small business owner for at least 2 years and have 2 years of demonstrated sound financial and credit management.
A minimum of 10% down is required, and the property value can be no more than 1.5 million. The maximum loan amount is $750,000 in Calgary, Vancouver, and Toronto and $600,000 in other regions.
What Determines National Bank Mortgage Rates?
Lenders like National Bank set their mortgage rates based on the Bank of Canada (BoC) policy rate or bond yields. The state of the economy in Canada and globally, inflation, and employment can all impact the direction of bond yields and the BoC’s monetary policy decisions, impacting mortgage rates.
Variable mortgage rates are directly tied to the Bank of Canada policy rate. When the BoC changes the policy rate up to 8 times a year, lenders adjust their prime rates accordingly. Most lenders set the prime rate at 2.20% higher than the policy rate.
Fixed mortgage rates are directly tied to the movement of bond yields with a corresponding maturity. For example, 5-year fixed rates follow the direction of 5-year bond yields. Bond yields are indirectly influenced by what the market thinks the BoC will adjust the policy rate to in the future. Depending on the lender, fixed rates are typically priced 1% to 2% higher than the corresponding bond yield.
Other factors, such as your credit score, loan-to-value (LTV) ratio, down payment, debt service ratios and more, can impact the rates or discounts National Bank offers you.
National Bank Mortgage Payment Increases
In the mortgage industry, a prepayment is when a borrower pays off a portion or the entire mortgage early, either with a lump sum payment or by raising their regular monthly payments. Your annual mortgage prepayment limit will vary from one major bank to another. If you want the freedom to pay off your mortgage early, you will want to shop around for a mortgage with favourable prepayment terms.
Whether you have a National Bank variable mortgage or a National Bank fixed-rate mortgage, flexible payment options allow you to pay off your mortgage faster. If you currently make monthly payments, you can switch to a weekly or biweekly schedule to help you pay off your mortgage faster.
Depending on your mortgage, you can make an additional payment, which must be equal to or less than your regular payment on the date of each payment. You also have the option to pay the capital portion of your All-In-One Home Equity line of credit with points from your Rewards Plan credit card.
National Bank Annual Mortgage Prepayment
If you take advantage of yearly prepayment privileges at National Bank, you can prepay up to 10% of the original principal amount annually without penalty. This can be done through a lump sum or multiple payments as long as the total amount does not exceed 10% in a calendar year.
If you have an open mortgage, you can make as many lump-sum principal payments as often as you like each year without a prepayment penalty.
Since the entire lump sum will be applied to the principal balance of the mortgage, you will pay significantly less interest throughout the mortgage’s lifetime and be able to pay it off much more quickly.
Important: You will incur a penalty if you choose to prepay your National Bank mortgage by more than 10% of the mortgage principal per year on a closed mortgage.
| Canadian Bank Closed Mortgage | Prepayment Amounts |
|---|---|
| RBC | 10% |
| National Bank | 10% |
| CIBC | 10% |
| TD Bank | 15% |
| Scotiabank | 15% |
| BMO | 20% |
Frequently Asked Questions
Can I negotiate my mortgage rate with National Bank?
You should always negotiate your mortgage rate, as the first offer is rarely their best. However, National Bank may offer rate discounts that will vary based on your credit profile, LTV, down payment, and debt service ratios.
What is the difference between fixed and variable mortgage rates?
Fixed rates provide predictable payments that remain constant throughout the mortgage term. Variable rates fluctuate with the National Bank prime rate, and your payments will increase or decrease with interest rates. This allows you to realize immediate savings when rates fall; if rates rise, the increase in payments keeps your amortization on schedule.
Does National Bank offer mortgage pre-approvals?
Yes, National Bank offers mortgage pre-approvals. You can lock in your pre-approved rate up to 90 days, so you can shop with peace of mind and not rush or delay your purchase.
Final Thoughts
National Bank offers a variety of mortgages to suit many borrowers’ needs. While National Bank may be a great option, it is always advisable to shop around for the best rate and terms whenever borrowers are in the market for a new mortgage, renewing, or refinancing.
Ready to find the best mortgage rate for your needs? Use Compare Mortgages to explore National Bank offerings alongside those of other top Canadian lenders.