National Bank Mortgage Rates and Reviews 2024 Archives

About National Bank of Canada – NBC

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.

When it comes to mortgages, National Bank provides both fixed / variable rates and other unique options, with competitive interest rates and flexible features. This comprehensive guide will provide an in-depth look at National Bank mortgage rates, reviews, eligibility requirements, penalties, and how to get the best deal in 2024.

Current National Bank Mortgage Rates

National Bank Mortgage Prime Rate

As of September 2024, the National Bank prime rate is 6.45%. This prime rate is used to determine the actual interest rates for variable-rate mortgages and lines of credit.

For example, a variable-rate mortgage may be the prime rate minus 0.5%. So, if the prime rate is 6.45%, that mortgage would have an interest rate of 5.95%.

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 as of September 2024.

National Bank Fixed Mortgage Rates

Term	National Bank Rate	Lowest of Big 6 Banks
6 month	7.84%	7.84%
1 year	7.64%	6.19% (RBC)
2 year	7.14%	5.78% (BMO)
3 year	6.74%	4.99% (RBC)
4 year	4.89%	4.89%
5 year	4.94%	4.64% (CIBC)
6 year	6.85%	5.34% (BMO)
7 year	6.85%	5.49% (BMO)
10 year	7.25%	5.68% (BMO)

National Bank Mortgage fixed rates as of 2024

National Bank Variable Mortgage Rates

Term	National Bank Rate	Lowest of Big 6 Banks
5 year	6.45%	5.65% (CIBC)

National Bank Mortgage variable rates as of 2024

*Rates are subject to change

(Source: https://www.nbc.ca/personal/mortgages/rates.html)

How National Bank Mortgage Rates Compare?

Compared to the other Big 5 banks, National Bank tends to have higher interest rates on 1 to 5-year fixed-rate mortgage terms. For example, for a 5-year fixed rate mortgage, National Bank’s rate is 4.94%, while most other major banks are between 4.64% to 4.99%.

However, National Bank offers more flexibility and options, with 6-month, 6-year, and 7-year fixed rate terms that may not be available at all banks.

National Bank’s 5-year variable rate of 6.45% for variable-rate mortgages is moderately higher than competitors like RBC at 5.5% or CIBC at 5.95%.

Overall, National Bank provides competitive rates but is not always the most affordable major bank option. The flexibility of term options can be an advantage for specific borrowers.

Get the Best Mortgage Rates with National Bank

While published rates provide a starting point, you can often negotiate a lower interest rate with National Bank. Here are some 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.

National Bank Mortgage Options

National Bank offers a variety of mortgage products to suit different needs and situations. Here is an overview of the main mortgage options available:

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 closed 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.

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.

HELOCs

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.

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.

Newcomer Mortgage

This mortgage option is designed for new immigrants or non-residents purchasing their first home in Canada. It provides flexible options for those with a limited Canadian credit history.

Construction Mortgage

National Bank offers construction mortgages to finance building a new home. The funds are provided in stages based on the progress of construction.

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.

National Bank Mortgages Features

National Bank offers several features and flexibility options to help you pay off your mortgage faster or access home equity.

Payment Acceleration Options

To repay your mortgage faster, National Bank provides:

Prepayment option – 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.

Accessing Home Equity

With the All-In-One HELOC, you can access your home’s equity for other purposes.

You can also refinance or take out a second mortgage to access equity for renovations, debt consolidation, or investing.

Portability

Unfortunately, National Bank does not allow you to port your existing mortgage to a new home. You would need to get a new mortgage for your next home.

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 will need to meet certain eligibility criteria. Here are some of the key requirements:

Down Payment

Your minimum down payment depends on the purchase price:

Up to $500,000 – Minimum 5% down
$500,000 to $999,999 – 5% on the first $500,000 + 10% on the remainder
Over $1 million – Minimum 20% down

Debt-to-Income Ratio (GDS & TDS)

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.

Credit Score

National Bank looks for a minimum credit score of 670, with scores over 800 considered excellent.

Other Criteria

Other factors that National Bank considers include 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 some of the 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 some 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 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.

More Guide on Top Banks for Mortgage in Canada

Looking for the Best Mortgage Options? Discover our Best Banks for Mortgages in Canada

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 penalties 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 both 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, contact our mortgage brokers at Best Mortgage Online, who can shop on your behalf from a wide range of lenders.

To get started, simply fill out our quick online form detailing your financing needs. From there, we take care of the rest, including:

Reviewing your situation and goals
Shopping rates from our extensive lender network
Negotiating on your behalf for the lowest rate
Guiding you through the mortgage process from start to finish

There is no obligation or cost for this service! Connect with us today to explore your mortgage options and get pre-approved to purchase your dream home this year!

FAQs

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.

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