2024 Federal Budget Announcement

Compare National Bank Mortgage Rates in Canada

Compare National Bank Mortgage Rates in Canada

National Bank is Canada’s 6th largest bank and is one of Canada’s Big 6 Banks. In this post, we break down National’s mortgage rates and products, from today’s current interest rates to historical rates for the bank, plus many other factors like stock information, prepayment amounts for National Bank customers, and more.

Key Highlights

  • National Bank is Canada’s 6th largest bank. They are based in Montreal, Quebec, with branches across Canada.
  • National Bank offers mortgage solutions for self-employed and business owners who may not have the standard proof of income needed to qualify.
  • National Bank offers a wide range of mortgages and other lending products at fairly competitive rates to Canadian consumers.

Compare National Bank Mortgage Rates

National Bank has a range of mortgage products for prospective homeowners. Comparing these to other major lenders in Canada can help you find the right solution and potentially save thousands over the lifetime of your loan. When you’re comparing multiple lenders, check for special offers and explore several rates simultaneously. It’s generally a good idea to look for the lowest rate possible with a lender that you trust.

Top 5 Big
Bank Rates

The top 5 big bank rates all in one easy-to-view table. See their rates then beat their rates (or get $500) with nesto’s low rate guarantee.

*Toronto rates

How to Compare Bank Rates From Big Banks

First, it’s worth mentioning that when you’re comparing rates from National Bank and other lenders, and you find a rate you like, nesto will guarantee to match or beat it, or you could get $500.

Generally, comparing rates from big banks, particularly the Big 6 Canadian Banks, is a critical part of the mortgage application and research process. While National Bank has a wide range of mortgages and rates, it’s always worth benchmarking these against the rest of the market to make sure you get a better deal. National lists many of its mortgage rates online and provides contact hours through its branches or on the phone.

Ultimately, the fastest way to compare mortgage rates from the big banks is to check out our rate comparison. We not only help you compare the best rates available, but we also lend directly.

National Bank Overview & Stock Information

The National Bank of Canada is the sixth biggest commercial bank in the country. With millions of personal clients around the country, National Bank is considered a conventional A lender and is a popular choice for mortgages for many Canadians. The bank’s headquarters is in Montreal, Quebec, and it has branches across Canada.

Stock Information

  • Listed on the Toronto Stock Exchange: NA.TO

NBC Prime Rate

As of Friday, April 19, 2024, National Bank’s prime rate is . Big banks use the prime rate as a basis for several products, like variable mortgages, credit lines, and credit cards. The Prime rate is the interest rate that commercial banks charge customers who represent the lowest level of risk. 

Prime rates are combined with a positive or negative spread (e.g. +/- 1.5%) for most lending products, depending on risk levels. Each bank sets the prime rate to determine the interest they charge customers. Although each bank sets its own prime rate, they generally try to keep their rates in line with each other.

Here’s a snapshot of the Prime Rate over time.

*Most Recent Prime Rate Shown
Source: BankofCanada.ca

National Bank 5-Year Fixed and Variable Rate History

National Bank’s 5-year fixed and variable rates over the last few years has followed similar trends for conventional lenders in Canada. Notably, National Bank’s interest rates dropped significantly during the peak of the COVID-19 pandemic, following the Bank of Canada’s interest rate cuts, which dropped rates to record low levels. This was followed by a sharp and significant surge in rates following the re-opening of the economy and the government’s attempts to slow rapid inflation. This can be seen in National Bank’s rate increases shortly after the key interest rate was increased in 2022.

We don’t track historical rates at National Bank. 5-year mortgage rates are the most popular rates in Canada, with people switching between fixed and variable depending on market trends. Analyzing the Bank of Canada chart below can help you choose between a fixed or variable 5-year mortgage rate in today’s market.

Bank of Canada Policy & Prime Rate Changes

Date of Rate ChangeKey Overnight Target Rate (%)Change (%)Bank Prime Rate
June 2, 20100.30%0.25%2.50%
July 21, 20100.55%0.25%2.75%
September 9, 20100.80%0.25%3.00%
January 28, 20150.65%-0.15%2.85%
July 16, 20150.50%-0.15%2.70%
July 13, 20170.75%0.25%2.95%
September 7, 20171.00%0.25%3.20%
January 18, 20181.25%0.25%3.45%
July 12, 20181.50%0.25%3.70%
October 25, 20181.75%0.25%3.95%
March 5, 20201.25%-0.50%3.45%
March 17, 20200.75%-0.50%2.95%
March 30, 20200.25%-0.50%2.45%
March 3, 20220.50%0.25%2.70%
April 14, 20221.00%0.50%3.20%
June 2, 20221.50%0.50%3.70%
July 14, 20222.50%1.00%4.70%
September 7, 20223.25%0.75%5.45%
October 26, 20223.75%0.50%5.95%
December 7, 20224.25%0.50%6.45%
January 25, 20234.50%0.25%6.70%
March 8, 20234.50%0.00%6.70%
April 12, 20234.50%0.00%6.70%
June 7, 20234.75%0.25%6.95%
July 12, 20235.00%0.25%7.20%
September 6, 20235.00%0.00%7.20%
October 25, 20235.00%0.00%7.20%
December 6, 20235.00%0.00%7.20%
January 24, 20245.00%0.00%7.20%
March 6, 20245.00%0.00%7.20%
April 10, 20245.00%0.00%7.20%

The Bank of Canada (BoC) will deliberate on the Key Overnight Target rate twice every quarter. Generally, all lenders will follow suit to keep their prime rates in line with the country’s Big Six chartered banks. Find below the most recent changes to the baseline, which impacted the spreads to the Big Banks Prime Rates.

You can find more details about the Key Overnight Target Rate and an explainer from the Bank of Canada (BoC) if you want to learn more about this topic.

National Bank Mortgage Products

National Bank has a fairly broad range of solutions for residential borrowers, including a number of common mortgage products like fixed-rate and variable-rate mortgages, second property loans, and a home equity line of credit.  

All-In-One home equity line of credit

National Bank’s All‑In‑One™ Home Equity line of credit lets homeowners buy a home and access repaid principal to finance other projects without needing to apply for a separate loan. You can borrow up to 65% of the value of the property in the form of a line of credit. To get this product, you will need to have a down payment of at least 20%, and the rest of the financing must be in the form of a mortgage loan.

National Bank Second Property Mortgage

If you’re looking to buy a second property, National Bank offers select products and rates to help. If your home can be used year-round, you may be able to get financing for up to 95% of its value. You can get financing for up to 90% of the property value if it’s a seasonal home like a cottage or lake house. You can choose a fixed, variable, or reduced rate on your loan, and your amortization period can be up to 25 years.

Mortgage for Self-Employed Workers

Designed for self-employed workers or business owners who are unable to provide the standard proof of income requirements to qualify. You can put as little as 10% down and refinance up to 80% of the value of your property.

National Bank Mortgage Payment Increases

Mortgage prepayment involves a borrower paying off some or all of their loan early, either with a lump sum payment or by increasing their monthly payments. Every bank in Canada has different prepayment amounts you can pay each year, and some offer more appealing prepayment options

National Bank offers a few different prepayment options to help you pay off your mortgage sooner. These include:

  • Adding additional payments. National Bank allows for additional mortgage payments on each payment date.
  • Increasing your payment frequency. By speeding up how often you pay your mortgage from monthly to weekly or bi-weekly payments, you can reduce the amount of interest you’ll accrue over the lifetime of your loan. Frequent payments help reduce your mortgage balance faster, leaving less to accrue interest.

National Bank Annual Mortgage Prepayment

National will let you prepay up to 10% of your mortgage principal once every year as a lump sum payment. This is relatively low among Canadian banks, as the comparison table below outlines.

Canadian Bank Closed Mortgage Prepayment Amounts
RBC10%
TD Bank15%
Scotiabank15%
BMO20%
HSBC20%
National Bank10%

Renewal Process With Big Banks

If you’re renewing your mortgage with National Bank or another big conventional lender, they’ll typically send a notice of renewal a few months before your term is set to expire, with the interest rate attached for your renewal, assuming your financial situation has not changed.

It’s worth knowing that once your term expires with National Bank, you also have the choice to renew with any other bank or mortgage provider. If you’re looking to renew your National Bank mortgage with another lender, it’s worth checking out other mortgage rates. At nesto, we help you find the best rates on your mortgage, and we also lend directly. 

To learn more about renewing your National Bank mortgage with a new lender like nesto, check out our renewal process guide.

Frequently Asked Questions (FAQ)

Here are the most frequently asked questions about National Bank’s mortgage products and rates in Canada this year.

Are National Bank rates lower than other big banks?

Generally, National Bank has a fairly good reputation for competitive rates, though they are not markedly lower than the rest of the Big 6 Canadian banks.

What are the benefits of choosing a smaller lender?

National Bank and other conventional lenders generally have strict lending criteria that allow them to offer lower rates than smaller lenders because they have, to some extent, de-risked their potential clients before granting them approval. Conversely, smaller lenders may not be able to provide the lowest rates but often can service unique financial situations and may have more flexibility when it comes to their terms and conditions of approval and the actual details of your loan.

How do I get a mortgage with National Bank?

National Bank has an extensive list of documents required to apply for and get approval on a mortgage loan. You can apply directly at a branch or speak to one of National’s mortgage advisors and set up an appointment. Typically, National is geared toward meeting with an advisor to apply for a mortgage, as online application tools are less prevalent on their website.

Final Thoughts 

National Bank is one of Canada’s largest banks but the smallest of the Big 6 Canadian banks. They are a conventional, or ‘A’ lender and provide Canadians with a range of residential mortgage products at competitive rates. If you’re looking to apply for a National Bank mortgage or you want to renew a current loan, it’s worth comparing rates and exploring all your options. At nesto, we help you compare the best rates available, and we also lend directly. If you’re with National Bank and looking to renew with a new lender, speak to an advisor today.

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