Kurt Woock
Beth Buczynski
National Bank mortgages at a glance
National Bank is one of Canada’s Big Six banks. It offers a few unique mortgage types — including six-month fixed rates, capped variable rates and loans for self-employed individuals — in addition to more typical products.
- Fixed- and variable-rate mortgages with a wide variety of term options.
- National footprint with notably high presence in Quebec.
- Mortgages available for self-employed people.
- Special offers if you use other National Bank products.
- Fixed-rate mortgages.
- Variable-rate mortgages, including a capped-rate option.
- HELOCs.
- Mortgages for self-employed individuals.
Pros
- Many available mortgage products.
- Helpful online pre-qualification.
Cons
- 90-day rate hold period lower than Big Six peers.
- No option to port your mortgage.
- Limited options for borrowers with low or bad credit.
National Bank mortgage review
National Bank may be the smallest of Canada’s Big Six banks, but, with more than 650 branches, it’s not exactly small. It serves customers across Canada, but the highest concentration of National Bank locations is in Quebec, where more than 250 of its branches are located.
Who is National Bank best for?
As one of Canada’s Big 6 banks, National Bank’s size makes it an option for most Canadians, especially those for whom access to in-person services is an important factor.
Quebecers looking for brick-and-mortar locations may find National Bank especially appealing with more than 250 sites to choose from. It notably offers a number of niche mortgage types, like a six-year fixed rate and a capped variable rate: If you’re considering options outside the norm, it may be worth looking into National Bank.
National Bank may also be a good fit for existing National Bank customers or those open to using the bank for more than just mortgages. There are deals available for those willing to use, for example, National Bank’s chequing or mortgage insurance.
Finally, National Bank has a mortgage option specifically designed for people who are self-employed. While other lenders may extend mortgage loans to those who work for themselves, National Bank’s specific outreach to this group may make it an easy option for self-employed borrowers to consider.
National Bank mortgages: feature overview
Variety of mortgages available
National Bank has many types of mortgage available — typical of Canada’s Big Six banks. One exception is mortgages for bad credit; you’ll need to look into alternative lenders for those.
National Bank advertises:
- Fixed-Rate Mortgages.
- Variable Mortgages.
- Home equity lines of credit.
- Renewals and refinances.
- Mortgages for new construction.
- Mortgages for newcomers to Canada.
- Mortgages for self-employed individuals.
- Mortgages for second homes.
Ease of application
You can find online pre-qualification and pre-approval forms on National Bank’s website or in person at a bank branch.
- Online pre-qualification: Yes. You will immediately receive maximum mortgage and monthly payment estimates — information some lenders only provide if you agree to be contacted directly.
- Online pre-approval: Yes, National Bank has an online form for pre-approval.
- Online mortgage application: No. You’ll need to contact National Bank directly.
- In-person option: Yes. National Bank has more than 360 locations.
Mortgage rate transparency
National Bank has some rate information on its website, but it only has a few special rates online.
- Posted rates: National Bank lists about a dozen posted online.
- Special rates: National Bank posts special rates, but only for some mortgage products.
- APR: There’s an APR for each posted and special rate on National Bank’s website.
Other National Bank mortgage details
Increase your payments: You can increase your standard payment — up to twice your normal payment without penalty.
Make lump-sum payments: In addition to making your regular mortgage payment, you can pay up to 10% of your original, fixed-rate closed mortgage amount up to once per year.
Prepayment penalties: If you exceed the set prepayment limits on your fixed-rate mortgage, , you’ll pay a prepayment penalty. These vary by lender; at National Bank you’ll pay the greater of three months interest on the prepayment amount based on your mortgage interest rate or one month of interest plus the interest rate differential on your prepayment amount. For variable-rate mortgages, the penalty is 3 months interest based on National Bank’s prime rate.
Range of terms: Three months to 10 years.
Rate hold: National Bank will hold rates for 90 days, which falls short of other Big Six banks that offer at least 120-day rate holds.
Portability: You can’t port your mortgage with National Bank.
Programs for newcomers: Newcomers to Canada with limited credit history may be able to get a mortgage with National Bank.
Customer satisfaction ratings
It’s difficult to gauge how satisfied Canadians are with National Bank as a mortgage provider. Customer review websites can be helpful, but keep in mind that the reviews aren’t verified and may not accurately reflect the average option of National Bank customers; for example, unhappy customers may be overrepresented in these reviews. Nevertheless, these sites are one way to learn about possible downsides to consider.
National Bank’s rating on Trustpilot was 1.7 out of 5 possible stars, with about 30 reviews at the time of this writing. Reviews have feedback about a number of National Bank’s products and services; not just mortgages.
Rate hold
National Bank will hold your rate for 90 days if you are pre-approved. This is a shorter window than some lenders. For example, CIBC holds rates for up to 120 days.
Mortgage prepayment
You can pay up to 10% of your original mortgage principal year per calendar year without penalty. This is lower than some other options. For example, HSBC allows prepayments of up to 20% without penalty.
National Bank mortgage eligibility requirements
You’ll need to provide a number of documents while applying for a mortgage, including:
- Two forms of identification.
- Bank statements showing proof of down payment funds.
- If you’re building a home, a list of the project’s schedule, costs, plans and permits.
You’ll also need to allow a hard inquiry on your credit score. Many lenders, including National Bank, don’t post exactly how a specific credit score affects your chances of getting approved or the interest rates different scores merit. Plus, those decisions are made after considering many factors, not just a credit score. That said, National Bank says a good credit score is generally 670 or higher, and a score above 800 is excellent.
Your down payment minimum is determined by the purchase price:
| Purchase price | Down payment minimum |
|---|---|
| $500,000 or less. | 5% |
| Between $500,000 and $999,999. | 5% of the first $500,000 plus 10% of the remaining amount. |
| $1 million and over. | 20% |
Nerdy Tip: Use a mortgage affordability calculator to determine how much you can afford to pay for a home. If you have a unique situation or need additional information about the eligibility requirements, it’s best to speak directly with a mortgage specialist.
How to apply for a mortgage with National Bank
National Bank offers online mortgage prequalifying and pre-approval. Find out how each process works below.
When you hover your mouse over the Mortgages tab on the CIBC site, it looks like the only mortgage processes you can begin online are for pre-approvals, refinances and renewals.
But if you click on “Mortgage Pre-approval,” you’ll have the option to get prequalified or pre-approved.
1. From the pre-approval page, scroll down until you see the following graphic and choose “Get started.”
2. Enter your income, down payment amount, monthly debt obligations and home expenses such as taxes and heating costs. You should receive a prequalification estimate as soon as you hit the “Calculate” button.
1. From the pre-approval page, scroll down until you see the following graphic and choose “Get preapproved.”
Once you answer a series of yes/no questions and agree to the terms and conditions, you can start the pre-approval process.
2. Enter your personal information, including:
- Your name, date of birth and contact information. You can include your Social Insurance Number, too.
- Your address and whether you own or rent your current residence.
When this is complete, you’ll create a profile and move on to the next step.
3. Enter some general details about the home you hope to buy, including:
- The province it’s located in.
- The target purchase price.
- How much money you intend to use as a down payment.
4. Provide details regarding your income, including:
- Your employment status.
- Your employer’s name.
- Your position.
- Your gross annual salary.
- How long you’ve held your position.
5. Confirm the information you’ve entered, agree to the bank’s terms and conditions and consent to a credit check. You’re all done.
Alternatives to National Bank’s mortgage products
| True North Mortgage | RBC Mortgage | HSBC Mortgage | |
|---|---|---|---|
| Lender type | Mortgage brokerage | Big Bank lender | Big Bank lender |
| Service area | National | National | National |
| In-person service? | Yes | Yes | Yes |
| Ease of application | Easy (online, phone, in-person) | Easy (online, phone, in-person) | Easy (online, phone, in-person) |
| Mortgage variety | Above average | Average | Above average |
Frequently asked questions about National Bank mortgages
Choosing a mortgage lender is a big decision. A mortgage is a large debt, and you want to make sure that you’re getting the best deal possible. If you’re a first-time home buyer, you’ll also need to learn the basics about the home buying process. Start by making a list of what’s important to you, and spend time comparing offers from the different types of providers.
You can start by following these steps:
Decide your budget: It’s important to have an idea of how much mortgage you can comfortably afford before talking with lenders. They may offer you more than you want to spend; it’s important to be ready for that conversation.
Understand the different types of lenders: Mortgage providers include banks, credit unions, brokers, alternative lenders, and private lenders. Each has its pros and cons.
Compare offers from three different lenders: To ensure you have a good idea of what’s out there, consider seeking mortgage pre-approval from a big bank, a broker and one other type of alternative lender.
Don’t focus too much on rates: The interest rate is just one part of the mortgage equation. Yes, you want the most competitive rate possible, but it’s also important to weigh the reputation of the lender, the quality of customer service they provide, the types of loans they offer, the fees they charge, and the flexibility of terms they may offer.
Like most mortgage brokers and lenders, National Bank will consider the following when estimating what the regular payment might be for your future mortgage:
- Home price: the total amount you agree to pay for a home.
- Down payment: the total amount you’ll pay upfront toward a home purchase.
- Amortization period: the number of years over which you’ll repay your mortgage.
- Mortgage term: the length of the contract you’ll have with your mortgage lender.
- Payment frequency: how often you’ll make a mortgage payment.
- Mortgage interest rate: the fee you’ll pay to borrow money from the lender; expressed as a percentage of the loan amount.
- Property taxes or title transfer fee: an annual fee based on your property value.
- Mortgage default insurance: an extra cost you’ll pay if your down payment is less than 20%.
Example:
- Home price: $650,000
- Down payment: $58,500 (9%)
- Amortization period: 25 years
- Mortgage term: 5 years
- Payment frequency: Monthly
- Mortgage interest rate: 5.5%
- Mortgage insurance: $23,660
TOTAL MORTGAGE: $615,150
MONTHLY MORTGAGE PAYMENT: $3,778
» MORE: Use our mortgage payment calculator to compare different loan scenarios.
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