National Bank is one of the Big Six banks in Canada, offering a wide range of mortgage options to borrowers nationwide. With headquarters in Montreal and over 20,000 employees, National Bank has grown to be the 6th largest bank in Canada, with $350 billion in assets under management.
National Bank is also one of the top banks for mortgages in Canada, providing fixed/variable rates and other unique options with competitive interest rates and flexible features. This guide will examine National Bank mortgage rates, reviews, eligibility requirements, penalties, and how to get the best deal in 2025 in depth.
What are the Current National Bank Mortgage Rates?
National Bank Mortgage Prime Rate
The National Bank’s current prime rate is 4.95%. This prime rate determines the interest rates for variable-rate mortgages and lines of credit.
The prime rate also indicates the direction of variable mortgage rates. If the prime rate goes up, variable mortgage rates will also increase.
National Bank can adjust its prime rate at any time, so it’s important to monitor changes if you have a variable-rate product.
Let’s explore the current mortgage rates offered by National Bank
National Bank Fixed Mortgage Rates
| Term | National Bank Rate |
|---|---|
| 6 month | 7.84% |
| 1 year | 6.79% | 5.49%* |
| 2 year | 6.49% | 4.79%* |
| 3 year | 6.49% | 4.44%* |
| 4 year | 6.34% | 4.44%* |
| 5 year | 6.39% | 4.39%* |
| 6 year | 6.69% |
| 7 year | 6.69% | 5.26%* |
| 10 year | 7.14% |
National Bank Variable Mortgage Rates
| Term | National Bank Rate |
|---|---|
| 5-year variable | 4.95% |
*Special Rates
Get the Best Mortgage Rates with National Bank
While published rates provide a starting point, you can often negotiate a lower interest rate with the National Bank. Here are 8 tips to get the best possible deal:
- Shop around – Get rate quotes from other lenders to negotiate with National Bank.
- Ask about promotions – Enquire about any limited-time discounts or bonuses.
- Increase down payment – The higher your down payment, the better your rates.
- Boost your credit score – Credit scores over 760 qualify for the best rates.
- Lower your debt – Reduce debts and credit utilization for better rates.
- Consider a shorter term – You may get a lower rate with a 1 or 2-year term.
- Monitor rate trends – Apply when fixed rates are dropping to lock in low rates.
- Negotiate, negotiate, negotiate – Ask National Bank directly if they can beat the rates you’ve been quoted elsewhere.
With some preparation and negotiation, securing a National Bank mortgage below their posted rates is possible.
What are National Bank Mortgage Options?
National Bank offers a variety of mortgage products to suit different needs and situations. Here is an overview of the 5 main mortgage options available:
National Bank Fixed Rate Mortgages
Fixed-rate mortgages have an interest rate set for the entire mortgage term, typically 1 to 10 years. National Bank offers terms of 6 months up to 10 years for fixed-rate mortgages.
The main advantages of fixed-rate mortgages are their interest rate stability and payment predictability. However, they also have strict prepayment rules and potential penalties if broken before maturity.
National Bank Variable Rate Mortgages
With a National Bank variable-rate mortgage, the interest rate fluctuates based on changes to the prime rate. Variable-rate terms up to 5 years are available.
Variable-rate mortgages generally come with lower interest rates than fixed mortgages in exchange for the flexibility to pay off the balance anytime without penalty. This makes them a good option if interest rates are expected to decrease.
National Bank All-in-One
National Bank offers home equity lines of credit (HELOCs) through its All-In-One product. This revolving line of credit uses the equity built up in your home as collateral and provides flexible access to funds for any purpose.
National Bank Self-Employed Mortgage
For borrowers who have been self-employed for over two years, National Bank offers tailored mortgages that consider factors beyond tax returns to determine eligibility and affordability.
National Bank Second Home Mortgage
For those looking to purchase a second property, National Bank offers mortgage financing up to 90% of the value of the second home. This allows existing home equity to be used for a down payment.
What are National Bank Mortgages Features?
National Bank offers several features and flexibility options to help you pay off your mortgage faster or access home equity.
National Bank Prepayment Options
To repay your mortgage faster, National Bank provides:
- Lump sum payment – Pay up to 10% of your original principal annually.
- Double-up payments – Double your payment up to 100% without penalty.
- Increase payment frequency – Switch from monthly to weekly or bi-weekly payments.
Mortgage Protection Insurance
National Bank offers optional mortgage protection packages that can cover your payments if faced with unemployment, disability, illness or death.
National Bank Mortgage Penalties
If you need to break your mortgage term before maturity or make any prepayments over your allowed limit, penalties will apply. Here are the National Bank mortgage break penalties:
Fixed Rate Mortgage Penalties
Fixed-rate mortgages come with steep penalties if broken early:
- 3 months of interest
- Or the IRD (interest rate differential) penalty, which is calculated based on the difference between the interest rates on the day the mortgage was taken and the current rates on the day it was broken.
Whichever penalty amount is higher will apply.
Variable Rate Mortgage Penalties
Breaking a National Bank variable-rate mortgage early results in a 3-month interest penalty calculated based on the current prime rate.
Mortgage Port-Out Penalties
Porting out your existing mortgage comes with the same penalties as breaking your term and taking your mortgage elsewhere.
Always weigh the break penalty cost against any savings from getting a new lower rate. Breaking your term only makes sense if the long-term savings outweigh the penalty.
National Bank Mortgage Eligibility Requirements
To qualify for a mortgage with National Bank, you must meet certain eligibility criteria. Here are some of the key requirements:
Your minimum down payment depends on the purchase price:
- Up to $500,000 – Minimum 5% down
- $500,000 to $1,499,999 – 5% on the first $500,000 + 10% on the remainder
- Over $1.5 million – Minimum 20% down
Your total monthly debt payments compared to gross monthly income should not exceed 39% for the total debt ratio and 44% for the total debt service ratio.
National Bank looks for a minimum credit score of 670, with scores over 800 considered excellent.
The National Bank also considers your credit management history, stable employment history, and asset amount.
Meeting the minimum eligibility criteria does not guarantee approval. Before applying, work on improving your credit score and debt levels well before applying.
National Bank Mortgage Pre-Approvals
National Bank offers pre-approval certificates that guarantee your rate and approval for up to 90 days while you search for a home.
Pre-approvals come with these key benefits:
- Lock-in rates – Your rate is secured even if rates rise during your 90-day term.
- Strengthen offers – Sellers know you can secure financing.
- Act fast on homes – No need to rush the mortgage application after finding a home.
National Bank must see updated financial information and property details before finalizing the mortgage. But you can shop with confidence, knowing you have already been approved.
Pros of National Bank Mortgages
Here are 6 advantages of getting a mortgage through National Bank:
- Many term options – With terms from 6 months to 10 years, National Bank offers more flexibility than some lenders that max out at 5 years.
- Access to equity – The All-In-One mortgage and HELOC product provides easy access to your home’s equity.
- Online application – Get pre-approved fully online without visiting a branch.
- Self-employed options – Special programs exist for self-employed borrowers.
- Newcomer options – New immigrants can qualify with a limited Canadian credit history.
- Second home financing – Access up to 90% financing for a second property.
Cons of National Bank Mortgages
There are also 5 potential drawbacks to consider with National Bank:
- Higher rates – Interest rates tend to be higher than competitors’ on fixed mortgages.
- Low prepayment limits – You can only prepay up to 10% of your mortgage annually before penalties apply.
- Short rate holds – Rate holds last 90 days, while some lenders offer 120 days.
- No portability – You can’t port your mortgage to a new property with National Bank.
- High penalties – Mortgage break penalties at National Bank can be higher than those of other lenders.
Alternative Mortgage Lenders to Consider
While National Bank is a leading banking option, here are some alternative mortgage lenders in Canada to consider:
- Mortgage brokers – Brokers shop rates from lenders on your behalf for free and can find you the most competitive rate for your situation.
- Credit unions – Local credit unions are a good option for personalized service and competitive rates.
- Alternative banks – Options like Tangerine offer unique products like no-penalty variable rate mortgages.
- Private lenders – For those who don’t qualify with traditional lenders, private lending is an option with higher rates.
- Online lenders – Companies like Ratehub and Borrowell offer online-only mortgages with low rates.
No matter what type of lender you choose, make sure to compare offers from multiple providers.
Looking for the Best Mortgage Options? Discover our Best Banks for Mortgages in Canada
- RBC Mortgage
- TD Mortgage
- Scotiabank Mortgage
- CIBC Mortgage
- Desjardins Mortgage
- Canadian Western Bank Mortgage
FAQs about National Bank Mortgages
What are the best National Bank mortgage rates?
The lowest National Bank rates are typically on shorter 1-2 year fixed-term mortgages and 5-year variable mortgages. However, always shop around and negotiate, as advertised posted rates are rarely the best deal available.
How do I apply for a mortgage with National Bank?
You can apply online or in person at a National Bank branch. Have all required documents ready and fill in the application forms to get a quick pre-approval decision.
What credit score is needed for a National Bank mortgage?
National Bank requires a minimum credit score of 670, but scores above 760 will qualify for the best rates.
Does National Bank do mortgages for self-employed?
Yes, National Bank offers a self-employed mortgage program for borrowers who have been self-employed for over 2 years.
Can I break my National Bank mortgage early?
You can break your National Bank mortgage term early but will face steep penalties - either three months' interest or the IRD penalty amount.
What National Bank mortgage terms are available?
National Bank offers a wide variety of terms for fixed-rate mortgages, from 6 months to 10 years. Variable-rate terms up to 5 years are also available.
Can I port my existing mortgage to a new home with National Bank?
Unfortunately, the National Bank does not offer mortgage portability. You would need to get a new mortgage for your next home.
How do I access the equity in my home with National Bank?
The All-In-One mortgage product from National Bank provides access to a home equity line of credit that uses your home's equity as collateral.
What is the maximum amortization period for a National Bank mortgage?
The maximum amortization period available is 25 years. This means you can spread repayment on the mortgage up to 25 years into the future.
Making the Best Decision for Your Mortgage Needs
Choosing the right mortgage lender and product is an important decision. Here are some final tips when weighing National Bank against other options:
- Compare interest rates and features from at least 3 mortgage providers
- Calculate the costs for your specific mortgage amount and term
- Consider your plans and budget for repaying your mortgage
- Review National Bank’s rates and penalty policies thoroughly
- Look for additional discounts if you have other accounts with National Bank
- Get personalized advice from a mortgage broker or advisor
- Go with the mortgage that best balances affordability, features, and long-term costs
While National Bank can be a suitable option, you should explore banks and alternative lenders to find your best fit.
Get your National Bank Mortgage today!
If you feel a National Bank mortgage meets your needs, you can get started with their online pre-approval process. With a pre-approval certificate, you can shop for your dream home knowing your financing is secured.
For personalized mortgage advice and to explore alternatives to National Bank for your unique situation, our mortgage brokers at Best Mortgage Online can shop on your behalf from a wide range of lenders.
Connect with us today to explore your mortgage options and get pre-approved to purchase your dream home this year!
