National Bank offers a range of mortgage solutions as Canada’s sixth-largest bank, managing $462 billion in assets, with 49% of its revenue concentrated in Quebec. Founded in 1979 through the merger of Banque Canadienne Nationale and Provincial Bank of Canada, it currently has a prime rate of 4.95%, following a 25-basis-point decrease in March 2025. This rate serves as the benchmark for its variable-rate mortgages.

The bank provides fixed-rate mortgages with terms ranging from one month to ten years and variable-rate options that adjust based on its prime rate, which is influenced by the Bank of Canada’s overnight rate decisions. Its specialized offerings include the All-In-One HELOC, self-employed mortgages, and multi-property mortgages, among others. Additionally, its Made-to-Measure Mortgage allows borrowers to divide their loan between fixed and variable rates, offering flexibility based on market conditions.

National Bank’s posted mortgage rates function as starting points for negotiation, with qualified borrowers receiving lower rates based on factors such as credit profile, down payment size, and debt-to-income ratios. Customer experiences vary, with some clients praising competitive renewal rates, while others report communication challenges and dissatisfaction with prepayment penalties.

Continue reading for a comprehensive review of National Bank’s mortgage offerings.

National Bank mortgage rates

	Posted Rates (Closed)	Special Rates (if applicable)
1-Year	6.99%
2-Years	6.69%
3-Years	6.49%	4.44%
4-Years	6.29%	4.39%
5-Years	6.39%	4.19%
10-Years	7.14%
5-year variable	4.95%	4.45%

National Bank prime rate

National Bank’s prime rate currently stands at 4.95%, following a 25-basis-point decrease effective March 12, 2025. This rate serves as the benchmark for National Bank’s variable-rate mortgages and home equity lines of credit (HELOCs). The bank adjusts its prime rate in response to the Bank of Canada’s overnight rate changes, typically aligning with other major Canadian financial institutions.

National Bank’s posted mortgage rates function primarily as starting points for negotiation, with qualified borrowers eligible for lower, discounted rates. The bank offers two rate tiers:

• Posted rates (official rates, often higher than what borrowers actually receive).
• Special rates (limited-time discounts available to eligible borrowers).

Borrowers with strong credit profiles, larger down payments, and lower debt-to-income ratios typically qualify for National Bank’s most competitive mortgage rates. Comparing National Bank’s offers with those from other lenders is advisable to secure the best financing terms.

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National Bank overview 

Despite tracing its history back to 1859, National Bank was officially founded through the 1979 merger of Banque Canadienne Nationale and Provincial Bank of Canada—one of the largest mergers at the time. Not to be confused with the Bank of Canada, this commercial bank oversees $462 billion in assets and is the country’s sixth-largest bank—with 49% of its revenue concentrated in Quebec.

Headquartered in Montreal, recent advancements include its $5 billion acquisition of Edmonton-based Canadian Western Bank in February 2025. Otherwise, National Bank’s venture capital division, NAventures, recently invested in digital mortgage lender nesto. The bank operates in over 660 branches nationwide, 120 foreign countries, and 20 U.S. cities. 

Advantages

• Unique programs for a Big Six bank, including Made-to-Measure, Capped-Rate, and a 95% loan-to-value second-home mortgage—plus generous cashback promotions.
• Property tax feature simplifies municipal and school tax payments by handling them directly through National Bank.
• Strong branch presence, particularly in Quebec, providing accessible in-person service.

Drawbacks

• No mortgage payment deferral options, which may limit flexibility during temporary financial hardship.
• More restrictive prepayment privileges than some Big Six competitors, with a 10% annual prepayment cap.
• 90-day rate lock, which is shorter than what some competitors offer, such as RBC (120 days) and BMO (130 days).

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National Bank mortgage products and services

Core Mortgage Products:

Fixed-rate mortgages

National Bank’s fixed-rate mortgage terms range from one month to 10 years. Borrowers benefit from stable payments and a predictable amortization schedule that remains unaffected by market interest rate fluctuations.

Customer reviews highlight challenges with prepayment penalties and communication, while others praise National Bank for competitive rate matching.

Variable-rate mortgages

National Bank’s variable-rate mortgages adjust based on its prime rate, which is influenced by the Bank of Canada’s overnight rate. These mortgages have fixed payments, but the proportion of interest and principal within each payment fluctuates as interest rates change.

For example, if interest rates rise, a larger portion of each payment will go toward interest, reducing the amount applied to the principal balance. Conversely, if rates fall, more of the payment will go toward paying down the mortgage principal.

Mortgage refinancing

National Bank’s refinancing program allows homeowners to access up to 80% of their property’s equity, with promotional cashback offers ranging from $500 to $3,500, depending on the loan amount. Eligible borrowers must maintain a National Bank chequing account and choose a fixed-rate term of four years or longer or a five-year variable-rate mortgage. Customer reviews indicate mixed satisfaction with the refinancing terms.

Specialized Mortgage Products:

All-In-One HELOC

National Bank’s All-In-One Home Equity Line of Credit (HELOC) combines mortgage financing with revolving credit—allowing you to borrow up to 80% of your home’s value. This hybrid structure separates traditional mortgage portions from HELOC funds, enabling borrowers to lock in lower rates for primary debt while maintaining flexible access to secondary credit. Notably, the HELOC component features interest-only minimum payments and allows you to reuse available credit as you pay down your balance, providing long-term financial flexibility.. 

Self-Employed Mortgage

National Bank’s Self-Employed Mortgage is a unique offering for a big institution, accommodating entrepreneurs and independent contractors with non-traditional income verification. It requires two years of self-employment history and accepts down payments starting at 10%. Properties must not exceed $1.5 million in value. However, loan limits are capped at $750,000 in major metro areas and $600,000 elsewhere—implying a larger overall down payment when considering average home prices in Canada.  

Second Home Mortgage

The Second-Home Mortgage provides financing for non-primary residences, such as vacation homes. This program allows for funding up to 95% of the property’s value, requiring a minimum 5% down payment.

However, National Bank requires mortgage default insurance for loans exceeding 65% of the property’s value, reflecting the higher risk associated with non-primary residences. This insurance adds additional costs, as determined by CMHC, Sagen, or Canada Guaranty.

Multi-Property Investment Mortgage

For real estate investors, the Multi-Property Financing Program supports the acquisition of residential complexes with five or more units, offering up to 85% financing and 40-year amortization periods for qualified semi-commercial rental properties. This program covers construction, acquisition, and refinancing options, providing flexibility for investors looking to expand their rental portfolios.

Additional Mortgage Features

• First Home Savings Account (FHSA): This government-backed program helps first-time buyers save for a down payment. Contribute up to $8,000 annually (to a lifetime maximum of $40,000) with tax-deductible contributions that grow tax-free. Withdrawals for qualifying home purchases are also tax-free.
• Home Buyers’ Plan (HBP): The Home Buyers’ Plan (HBP) allows first-time buyers to withdraw up to $60,000 from their RRSPs tax-free, provided the amount is repaid within 15 years.
• Capped Variable-Rate Mortgage: Works like a traditional variable-rate mortgage but includes an interest rate ceiling, ensuring rates do not exceed a set maximum. The initial rate is typically higher than a standard variable-rate mortgage.
• Made-to-Measure Mortgages: Allows borrowers to split their mortgage between fixed and variable rates, balancing rate stability with potential interest savings.
• Mortgage Loan Insurance: Protects your mortgage payments if you become disabled, critically ill, or unable to work.
• Open Mortgages: Allows you to pay off your mortgage in full at any time without penalties. These mortgages typically come with higher interest rates in exchange for repayment flexibility.
• Property Tax Payment Service: National Bank can manage your property tax payments as part of your regular mortgage payment, ensuring they are always paid on time.
• Accelerated Payments: Choose weekly or biweekly payments to reduce your amortization period, save on interest, and pay off your mortgage faster.
• Lump-Sum Allowance: On closed mortgages, you can make additional payments toward your principal balance (up to 10% annually) without penalty, helping reduce interest costs and shorten your mortgage term.
• Additional Payments: Increase your regular mortgage payments up to 100% without incurring prepayment charges.
• Mortgage Transfer: Switch your existing mortgage from another financial institution to National Bank with a streamlined process that may include cashback incentives.
• 90-Day Rate Lock: Secure your mortgage rate for up to 90 days while house hunting, protecting yourself from potential rate increases.
• Special Mortgage Offers: Take advantage of promotional rates, limited-time cashback incentives, and exclusive bundle discounts for both new and existing mortgage clients.

Factors influencing National Bank’s mortgage rates

National Bank’s mortgage rates are influenced by multiple factors, with the Bank of Canada’s policy decisions playing a key role. While the BoC sets the overnight target rate, individual banks, including National Bank, determine their prime rate, which in turn affects variable mortgage rates and home equity lines of credit.

Fixed mortgage rates, however, are more closely tied to government bond yields, which fluctuate based on market conditions, inflation expectations, and economic data.

Beyond broader market trends, individual mortgage rates also depend on borrower-specific factors, including credit score, debt service ratios, and income stability.

Getting the best mortgage rate with National Bank

Securing the best mortgage rates at National Bank requires strategic financial preparation and negotiation. For best results, improve your creditworthiness by boosting your credit score, paying down outstanding debts, and building a sufficient down payment. Remember that National Bank’s posted rates should be treated as starting points for negotiation—with special offers also available to reduce rates. National Bank’s 90-day rate hold guarantee provides time to research current market rates and receive various offers to leverage the best option. 

Otherwise, with the bank’s analysts anticipating potential rate reductions this year, ensure that variable-rate adjustments are monitored closely. National Bank’s Made-to-Measure Mortgage is a hybrid mortgage that splits a borrower’s loan into fixed and variable portions.. 

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National Bank mortgage application process

Eligibility criteria

As of January 2023, Canadian lenders like National Bank can only provide mortgages to Canadian Citizens, Permanent Residents, or Indians as defined under the Indian Act. The following section details additional requirements to qualify for a National Bank mortgage.  

Income and debt-service ratios

National Bank evaluates mortgage applications using standard debt service ratios similar to other major Canadian lenders. Your Gross Debt Service (GDS) ratio, including housing-related costs, must remain under 39% of gross income. Your Total Debt Service (TDS) ratio, encompassing all debt obligations, must stay below 44% of your income. 

These ratios are stress-tested at a hypothetically higher interest rate to ensure you’d sustain solvency if rates rise. Otherwise, applicants require a stable employment history, while self-employed borrowers must provide additional documentation.

Credit score

According to National Bank’s website, a good credit score is 670 or higher—implying this is within its acceptable range for mortgages. However, the same article states that a score exceeding 800 indicates a low risk of not making payments. 

That said, it’s fair to assume National Bank’s best mortgage rates are reserved for those with a credit score exceeding 800. The bank evaluates your credit report during underwriting, examining payment history, credit utilization, and public records. 

Down payment

National Bank follows the standard Canadian down payment structure updated in 2024. Property values under $500,000 require a minimum 5% down payment, while homes between $500,000 and $1.5 million need 10% on this portion. That means a blended minimum down payment of 5% to 10%, depending on the home’s purchase price. 

For properties exceeding $1.5 million, a 20% down payment is mandatory as these cannot be covered with mortgage default insurance. While a 20% down payment is higher, it will save you from additional mortgage default insurance fees. 

First-time homebuyers can combine down payment sources, including FHSA contributions and RRSP withdrawals through the Home Buyers’ Plan, up to the program maximums of $40,000 and $60,000, respectively. Note that the former can offer higher withdrawal amounts if its balance increases with investments. 

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National Bank mortgage pre-approval

National Bank offers two tiers of mortgage qualification: online pre-qualification for quick estimates and formal pre-approval for serious homebuyers. 

The pre-qualification tool requires basic financial information, including income, down payment amount, debt obligations, and estimated housing expenses like property taxes and heating costs. Results appear instantly after calculation, providing a preliminary budget range without affecting your credit score. 

For full pre-approval, applicants create an online profile, input property specifications, provide detailed income documentation, and consent to a credit check—earning the 90-day rate hold guarantee. Pre-approval requires more comprehensive documentation than pre-qualification, including employment verification, down payment confirmation, and identification documents. 

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National Bank mortgage application checklist

National Bank requires comprehensive documentation during the mortgage application process to verify your financial situation and determine eligibility. Documents to bring include identification, bank statements, income-related documents, proof of down payment, and property-related documents. The image below is taken from National Bank’s documents page, explaining everything in detail.

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National Bank mortgage prepayment penalties

National Bank applies prepayment penalties on closed mortgages when borrowers exceed annual prepayment limits or break their mortgage before the term ends. To help borrowers estimate potential costs, the bank provides an online prepayment penalty calculator.

How prepayment penalties are calculated

• Variable-rate mortgages: The penalty is three months’ interest on the remaining balance.
• Fixed-rate mortgages: The penalty is the greater of:
  • Three months’ interest, or
  • The Interest Rate Differential (IRD), which compares your original mortgage rate to the bank’s current posted rate for a similar remaining term.
  • If market rates have fallen since you took out your mortgage, the IRD penalty can be substantially higher.

	Closed mortgage	Open mortgage
Variable-Rate	Three months’ interest	No prepayment penalties
Fixed-Rate	Higher of three months’ interest, or interest rate differential (IRD)	No prepayment penalties

How to reduce or avoid penalties

• Make lump-sum prepayments: National Bank allows you to prepay up to 10% of your original principal annually without penalty.
• Wait until renewal: If you’re near the end of your term, waiting until renewal avoids penalties.
• Port your mortgage: If moving to a new home, you may be able to transfer your existing mortgage to the new property instead of breaking it.

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National Bank mortgage renewal

National Bank’s renewal process occurs toward the end of your mortgage term. This allows you to make material changes to your mortgage conditions—like your interest rate type, payment frequency, payment amounts, and term length. Renewing is also a good time to consider refinancing or changing lenders because you won’t incur penalties. Regardless, it’s best to shop around six months before your renewal date to provide ample negotiation time across multiple lenders. 

However, renewing your mortgage with National Bank can avoid additional filing fees, notary costs, and property appraisal expenses. While your interest rate will likely be higher than elsewhere, you may not need to re-qualify for a mortgage loan—meaning no proof of income, credit checks, or further qualification documentation.

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National Bank alternatives and competitors

RBC

National Bank and RBC offer the strictest pre-payment privileges among Canada’s big six banks—at just 10% annually. While RBC provides a 120-day rate hold guarantee, National Bank’s Made-to-Measure Mortgages offer unique flexibility. RBC dominates with a more extensive branch network of over 1,200 locations nationwide, compared to National Bank’s concentration in Quebec. Both banks offer a range of programs, with RBC’s cross-border, and National Bank’s self-employed mortgages standing out. 

Bank of Montreal (BMO) 

BMO outshines National Bank with a 130-day rate hold guarantee—the longest among major Canadian banks—compared to National Bank’s standard 90-day period. National Bank’s All-In-One Account offers similar functionality to BMO’s Homeowner ReadiLine, combining mortgage and HELOC features. However, BMO’s generous 20% annual prepayment privilege doubles National Bank’s 10% allowance, providing significantly more flexibility for borrowers looking to pay down their mortgage faster. BMO’s recent BrokerEdge launch also provides additional access channels not available through National Bank.

TD

TD Bank offers more flexible payment features than National Bank, including a unique payment vacation option that allows up to four months of skipped payments. National Bank’s 10% annual prepayment privilege falls short of TD’s 15% allowance, limiting options for accelerated mortgage repayment. Both banks maintain similar posted rates requiring negotiation, though TD’s separate mortgage prime rate creates additional complexity compared to National Bank’s more straightforward rate structure.

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National Bank takeaway

Overall, National Bank offers a comprehensive mortgage suite with unique products like Made to Measure Mortgages that divide loans between fixed and variable rates. Their All-In-One HELOC combines traditional mortgage financing with revolving credit, providing flexibility for borrowers needing access to home equity. Despite more restrictive prepayment privileges compared to major competitors, National Bank remains competitive through unique property tax management features and strong positioning in Quebec.

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Frequently Asked Questions

Last modified: March 22, 2025