Clay Jarvis
Mary FloryCurrent National Bank discounted mortgage rates
| Term | Rate | APR |
|---|---|---|
| 4-year (closed, fixed | 4.69% | 4.73% |
| 5-year (closed), fixed | 4.69% | 4.73% |
| 5-year (closed), variable | 5.45% | 5.49% |
This table is updated daily on weekdays using data available on the National Bank of Canada website.
Current National Bank posted mortgage rates
| Term | Rate | APR |
|---|---|---|
| 1-year (closed), fixed | 7.24% | 7.96% |
| 1-year (open), fixed | 9.65% | 9.77% |
| 2-year (closed), fixed | 6.84% | 6.91% |
| 3-year (closed), fixed | 6.49% | 6.54% |
| 4-year (closed), fixed | 6.34% | 6.38% |
| 5-year (closed), fixed | 6.39% | 6.43% |
| 5-year (closed), variable | 5.95% | 5.99% |
| 7-year (closed), fixed | 6.69% | 6.72% |
| 10-year (closed), fixed | 7.14% | 7.17% |
This table is updated daily on weekdays using data available on the National Bank of Canada website.
National Bank prime rate
National Bank’s prime rate was lowered to 5.95% on October 24, 2024.
National Bank’s prime rate is the basis for its variable-rate lending products, like mortgages, credit cards and lines of credit. When the Bank of Canada adjusts its overnight rate, National Bank’s prime rate will increase or decrease by the same amount, affecting the cost of borrowing for these products.
Mortgage rates at National Bank’s competitors
Click on a bank’s name to see a full range of its current fixed and variable mortgage rates, including any discounted rates it might be offering.
Rates updated: September 30, 2024
Bank |
3-Yr Fixed Rate |
5-Yr Fixed Rate |
5-Yr Variable Rate (Closed) |
5-Yr Variable Rate (Open) |
|---|---|---|---|---|
| 6.54% | 6.49% | 6.45% | 8.15% | |
| 6.99% | 6.84% | 6.45% | 9.75% | |
| 6.54% | 6.44% | 6.45% | N/A | |
| 6.50% | 6.39% | 6.45% | 9.75% | |
| 6.54% | 6.49% | 6.90% | 9.65% | |
| 6.94% | 6.79% | 6.60% | 7.60% |
Posted rates for closed mortgages with amortization under 25 years. Data source: Canada's major banks
National Bank at a glance
The National Bank of Canada was founded in Quebec City in 1859. Despite being the smallest of Canada’s Big Six banks, National Bank remains the largest bank in Quebec. It employs almost 30,000 employees across 120 countries.
Although it’s dwarfed by other major banks like RBC and TD, National Bank’s mortgage business is considerable. In the second quarter of 2023, National Bank’s Canadian residential mortgage portfolio, including home equity lines of credit, was $113 billion.
National Bank mortgage products
In addition to providing traditional mortgage products, including fixed- and variable-rate loans that may be structured as either open or closed, National Bank also offers:
- Home equity lines of credit.
- Mortgages for the self-employed.
- Mortgage refinances.
- Mortgage renewals.
National Bank mortgages: things to consider
Posted rates vs. special rates
Large lenders like National Bank often provide two sets of current mortgage rates: posted rates and special, or discounted, rates.
National Bank posted mortgage rates
National Bank’s posted rates are the pre-discounted mortgage rates the bank makes publicly available. Posted rates can be much higher than discounted rates, with the expectation that borrowers will negotiate them down.
There are various theories around why this is the case at major lenders. Some lending experts believe it’s to make borrowers feel a sense of satisfaction at getting a better deal, others wonder if a higher posted rate allows banks to charge stiffer penalties if a person breaks their mortgage contract.
If you’re offered a posted rate when you first walk into a National Bank branch, consider it the beginning of a negotiation — and a great reason to compare offers from other lenders.
National Bank special rates
Special rates are National Bank’s posted rates that have already been discounted, including limited time offers. Under most circumstances, a special rate will be more in line with the rate you’re actually offered.
Even if you’re offered a special mortgage rate at National Bank, don’t be afraid to try and negotiate a lower one.
Fixed vs. variable mortgage rates
When you get a mortgage from a lender like National Bank, you’ll have to make an important choice between a fixed or variable mortgage rate.
Fixed mortgage rates
With a fixed-rate mortgage, your interest rate will remain the same for the duration of your mortgage term. If National Bank offers you a 5.25% five-year fixed mortgage rate in 2023, for example, your rate won’t change until it’s time to renew your mortgage in 2028.
A fixed mortgage interest rate allows you to budget around a predictable monthly mortgage payment for years at a time. But if fixed rates fall during your mortgage term, the only way to take advantage is by breaking your mortgage contract and refinancing at a lower rate. Doing so can trigger steep mortgage prepayment penalties.
Variable mortgage rates
If you opt for a variable rate on your National Bank mortgage, the rate could rise or fall many times during your term. When it rises, more of your monthly mortgage payment will go toward interest; when it falls, more will go toward the principal.
Variable mortgage rates have generally been lower than fixed rates. But in times of high inflation, when variable rates are driven upward by increases to lenders’ prime rates, variable rates can put unexpected pressure on your finances.
From March 2022 to July 2023, for example, homeowners with variable-rate mortgages saw their rates increase 475 basis points. Since one basis point is equal to 0.01%, that means a borrower who secured a variable rate of 2.25% in January of 2022 would be paying 7% in July 2023. That’s not a common occurrence, but it highlights the risk of taking out a variable-rate mortgage during times of economic uncertainty.
Open vs. closed mortgages
Another consideration when getting a mortgage at National Bank is whether to choose an open or closed mortgage.
With an open mortgage, you can increase your mortgage payments or even pay your mortgage in full at any time without penalty. A closed mortgage will impose annual limits on how much you can prepay your mortgage.
Choosing between open and closed mortgages is often a matter of cost. Open mortgages tend to come with much higher interest rates.
Rate vs. APR
When investigating National Bank’s mortgage rates or comparing them to rates from other lenders, it’s best to use the annual percentage rate (APR) provided rather than the interest rate itself.
APR includes any other fees that might be added to the cost of your mortgage, and gives you a more accurate figure with which to calculate your potential mortgage costs.
How to get the best mortgage rate at National Bank
As one of Canada’s federally regulated A lenders, National Bank follows the country’s strict lending guidelines. Convincing the bank to offer you the best mortgage rates might require a little effort on your part, including:
- Raising your credit score. A high credit score tells lenders that you pay your debts on time. A low credit score, on the other hand, might mark you as more of a credit risk and result in you being offered a higher interest rate. If your credit score is quite low, you may not be approved for a mortgage at National Bank at all. Instead, you might have to apply with one of Canada’s many B lenders.
- Making a larger down payment. If you can make a significant down payment, one that goes well beyond Canada’s minimum down payment guidelines, lenders might see that you prioritize home ownership — but they’ll definitely see that they can loan you less money. Both interpretations mean less risk for the lender, which could mean a lower mortgage rate for you.
- Lowering your debt service ratios. If your debt service ratios are high, it signals to lenders that too much of your income is already going toward paying down debt. That’s risky for lenders, and the more risk you present as a borrower, the higher the rate you’ll be offered.
- Shopping around. National Bank may not offer you the best mortgage rate. Taking a look at the rates other lenders are charging is one way to find out whose offer is the right fit for your financial situation.
- Negotiating: Don’t be afraid to ask a National Bank mortgage expert if they can improve on the rate they’ve offered you. If they stand firm, let them know that you’re going to see what other lenders are offering before making a final decision.
Getting a mortgage at National Bank
In addition to offering in-person mortgage service, 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.
Frequently asked questions about National Bank mortgage rates
National Bank’s prime rate is currently 5.95%.
You can — and should — negotiate your mortgage rate at National Bank. When you first apply for a mortgage, National Bank may not offer you the lowest rate possible, so it’s always advisable to ask for a lower one. Even if you’re only able to reduce the cost of your mortgage by a little, the money you save can be put toward a better use.
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