National Bank Mortgage Rates in Canada
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Below you will find National Bank’s posted 5-year fixed and variable mortgage rates. Use Rates4u.ca comparison chart to evaluate other brokerages and lenders against National Bank and ensure you get the best mortgage rate!
National Bank mortgage rates Canada overview
National Bank of Canada (NBC) is the sixth-largest commercial bank and is one of the fastest-growing financial institutions in the mortgage market. They offer a wide range of mortgage options, including 1 to 10-year terms. Currently, they have a network of approximately 422 branches and 939 ATMs in Canada. They also have representative offices, subsidiaries, and partnerships in other countries to serve both Canadian and non-Canadian clients.  Â
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 National Bank offers three prepayment options that apply directly to your principal balance, reducing the amount you owe interest in and decreasing your mortgage length. Â
 You can make an additional payment each payment date of up to 100% of your current payment amount. Â
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 You can make a yearly lump-sum payment of up to 10% of your current principal balance. Â
 You can increase the size of your payment every year, up to twice the original amount. Â
 National Bank boasts an All-in-One mortgage that functions like a chequing account and a home equity line of credit (HELOC) wrapped into one. Distinct from a traditional HELOC, the All-in-One account combines the line of credit portion with your bank accounts. The advantage of which is, when it takes into account your total balance, it temporarily offsets your debt for interest rate calculations. Â
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The line of credit portion gives you the freedom to borrow at any time to finance other projects, from home renovations to investments to college funds. Â
Market Best Mortgage Rates
National Bank Fixed-Rate Mortgages
National Bank Fixed Rate Mortgage product allows you to “lock-in” a specific interest rate for the term, reducing the risk of future interest rate fluctuations. This can create peace of mind for most homeowners, making it an appealing mortgage product for most home buyers; if you’re thinking of or arranging a new mortgage for a future or your current home, your fixed interest rate mortgage can be guaranteed up to 120 days before your home’s closing date. If the interest rates go up during that time, you will be guaranteed a lower rate.Â
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National Bank Variable-Rate Mortgages
The National Bank Variable Rate Mortgages provides you with fixed payments over the term of your mortgage; keep in mind, the interest rate will fluctuate with any changes in the bank of Canada prime interest rate. If the bank of Canada prime rate goes down, more of your payment will go towards paying off your principal; while if the bank of Canada prime rate goes up, more of your payment will go towards your mortgage’s interest costs. This is a great financial tool for people expecting rates to fall or take advantage of current low mortgage rates.Â
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Most times, the National Bank variable mortgage is a convertible mortgage that allows you to convert to another term, such as a fixed mortgage at any time. This feature provides you with flexibility and security, as it enables you to convert to a longer closed term should your variable rate mortgage no longer meet your needs.Â
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National Bank mortgage application checklist
Once you have started the application process, National Bank will ask you questions relating to what you owe and own; some of the expenses relating to the property, such as heating costs, taxes, and condo fees; also, whether you will be using the property to generate income. Additional information National Bank will require includes:Â
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- Your last two years T1 and Notice of Assessment
- A current list of your assets and liabilities
- The confirmation of your down payment may include recent bank statements, a Gift Letter, or RRSP withdrawal confirmations.
- Job letter proving current employment and income, including recent payslips
- Documents are proving additional income such as child tax credit etc.
- The details about the property your buying or currently own, including the MLS listing (if applicable) and any associated bills and taxes (e.g., property taxes, heating costs, and condo fees).
More on National Bank of Canada
The National Bank of Canada (NBC) is headquartered in Montreal and has 2.4 million personal clients and branches in most Canadian provinces. They offer a full array of financial services ranging from retail to corporate and investment banking.Â
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National Bank prepayment charges
There are downsides to a fixed-rate mortgage, such as the restriction on paying out your mortgage early. Despite well-thought-out plans, unexpected life events sometimes require a mortgage to be broken and paid out early.Â
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Like all of Canada’s Big six banks, National Bank fixed-rate mortgage prepayment charges are calculated on the greater of:Â
- The interest rate differential (IRD) or
- Three months’ interest
 This is based on the difference between the rate the bank could lend at today (the posted rate) and your rate for a term equivalent to the remaining term of your mortgage. The more your rate is above today’s published rates, the higher the IRD charge will be.Â
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The Big six banks are notorious for having high— and astronomical— penalties. Always consider this when you are mortgage shopping or ask your mortgage broker; if there is a chance you may need to break your mortgage early, then you may be better off with a fair penalty lender. Or variable-rate mortgage (which charges three months’ interest penalty to break a mortgage early).Â
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National Bank Prime Rate
As of September 19, 2020, National Bank’s Prime Rate is 2.45%Â
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How does National Bank set their Prime rate?
Each bank or lender determines its Prime rate. Banks in Canada usually look to the target overnight rate or the Policy Interest Rate set by the Bank of Canada (BoC). Similar changes typically follow changes in the target overnight rate in Prime rates. As a result, most banks and lenders in Canada have similar Prime rates.Â
