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 — three-month fixed rates, capped variable rates — 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 process.
Cons
- 90-day rate hold is shorter than at other Big Six banks.
- Rates aren’t any lower than at other major lenders.
- 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. Quebecers looking for brick-and-mortar mortgage advice may find National Bank especially appealing.
The company 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 a more accessible option for self-employed borrowers.
Who is National Bank best for?
National Bank may be a fit for home buyers looking for slightly more mortgage options than those typically offered by its Big Six competitors.
National Bank mortgages: feature overview
Variety of mortgages available
- 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 rates online.
- Special rates: National Bank publishes 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. For fixed rate mortgages you’ll pay either three months’ interest on the prepayment amount or one month of interest plus the interest rate differential, whichever is higher. 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 opinion of National Bank customers. Unhappy customers might, for example, 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 1.6 out of 5 possible stars, with about 70 reviews at the time of this writing. Reviews include 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.
National Bank mortgage eligibility requirements
You’ll need to provide a number of documents when applying for a mortgage with National Bank, including:
- Two forms of identification.
- Your real estate lawyer’s contact information.
- A void cheque or bank account statement.
- Copies of lease agreements (if you’re buying a rental property).
- Income-related documents.
- A list of the project’s schedule, costs, plans and permits if you’re building a home.
National Bank says a good credit score is generally 670 or higher. If your credit score is lower, you may need to seek financing from an alternative lender.
As a federally-regulated financial institution, National Bank adheres to the country’s lending rules, including its minimum down payment requirements.
| 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
National Bank doesn’t really differentiate itself from the competition where rates are concerned. At the time of this writing, many brokerages and some other Big Six banks offered considerably lower fixed and variable mortgage rates.
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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