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Compare National Bank Mortgage Rates in Canada

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Compare National Bank Mortgage Rates in Canada

National Bank is Canada’s sixth largest bank, and is part 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.
  • Currently, National bank’s fixed rate 5-year mortgage rates are 5.39% with their promotional offering, and 6.14% for their 5 year fixed rate closed mortgage. 
  • National Bank offers a wide range of mortgages and other lending products to consumers in Canada, at fairly competitive rates.

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 Six 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 their mortgages online, and also provides contact hours through their branches or on the phone.

Ultimately, the fastest way to compare mortgage rates from the big banks is to check out our rate comparison. Not only do we help you compare the best rates available, 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 Canada, 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 the bank has branches across Canada. National Bank trades on the Toronto Stock Exchange under the symbol NA, with stock prices in the last year of trading ranging between around $85 (CAD) and $105.

NBC Prime Rate

At the time of writing, National Bank of Canada’s prime rate is 5.45%, for Canadians. The Prime rate is used by big banks as a basis for several products, like 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 levels of risk. The prime rate is set by each bank to determine the amount of interest they charge to 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.

National Bank 5-Year Fixed and Variable Rate History

National Bank’s 5-Year Fixed and Variable Rate 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 during 2022.

National Bank Mortgage Products

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

Fixed rate mortgages

National Bank has a number of fixed rate mortgages, including different term lengths, open mortgages, and closed mortgages. Here’s a breakdown of National Bank’s fixed rates and terms as of 09-19-2022.

TermOpenClosedApr
3 months5.19%5.03%
6 months9.15%5.19%Open: 9.38%
Closed: 4.97%
1 year9.15%5.39%Open: 9.27%
Closed: 5.31%
2 years5.44%5.36%
3 years5.64%5.59%
4 years5.99%5.93%
5 years6.14%6.18%

Variable rate mortgages

Variable rate mortgages have an interest rate of Prime + 0.00% and are adjusted monthly. They allow you to take advantage of lower interest rates, but can increase when rates go up, which may affect your monthly repayments. Here’s a snapshot of National Bank’s variable rate mortgages as of 09-19-2022.

Reference RateDifferenceRate in effectApr
Variable-rate mortgage (60 month term)Prime rate0.00%5.45%4.74%
Capped-rate mortgage (60 month term)Prime rate
Capped rate = 6.14%

0.25%
5.70%4.99%
Prime = 5.450

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 offer 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. If it’s a seasonal home like a cottage or lake house, you can get financing for up to 90% of the property value. You have the option of choosing a fixed, variable, or reduced rate on your loan, and your amortization period can be up to 25 years.

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 come with 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 payment 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. More frequent payments balance your mortgage amount more often, leaving less to accrue interest on.

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?

National Bank’s current fixed rate 5-year mortgage has an interest rate of 5.39% with their promotional offering, and a rate of 6.14% for their 5 year fixed-rate close option. This is lower than some competitors like CIBC, but may not be as low as some of the best rates available in Canada. Generally, National 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 in branch or speak to one of National’s mortgage advisors and set up an appointment. Typically it seems that National is geared towards meeting with an advisor to apply for a mortgage, as online application tools are less prevalent in their website.

Final Thoughts 

National Bank is one of Canada’s largest banks, but the smallest of the Big Six Canadian banks. They are a conventional, or ‘A’ lender, and provide a range of residential mortgage products for Canadians, at competitive rates. If you’re looking to apply for a National Bank mortgage, or you want to renew a current loan, its 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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