National Bank fixed rate mortgages
National Bank offers fixed rate closed term mortgages in 3 month, 6 month, 1, 2, 3, 4, 5, 6, 7, and 10 year terms. Fixed rate mortgages offer you predictable mortgage payments, protecting you from interest rate increases. National Bank currently only offers closed term mortgages, not open term mortgages.
National Bank variable rate mortgages
Variable mortgage rates allow you to potentially pay less interest charges if interest rates remain low during your mortgage term. National Bank offers two variable rate mortgages. The first one is a 5 year closed term mortgage, and the other is a 5 year capped-rate mortgage. The capped-rate mortgage is a variable rate mortgage that fluctuates with prime lending rates, but it won’t exceed a predefined interest rate if rates get too high.
National Bank allows you to pay your mortgage in weekly, bi-weekly, or monthly frequencies.
When it comes to skipping mortgage payments, unlike the other big banks, National Bank does not allow you to skip mortgage payments. If you have a need to skip or delay a mortgage payment, contact a National Bank mortgage advisor to discuss your options.
National Bank mortgage prepayments
By making prepayments on your mortgage, you can be mortgage-free faster and save money on interest charges. Making prepayments on your mortgage essentially means that you'll be making extra payments to pay down your mortgage principal quicker.
With National Bank, you can make a prepayment of up to 10% of your original mortgage principal amount. This prepayment limit resets every year. Paying over the limit will result in National Bank charging you a prepayment penalty.
Your prepayment will go directly towards paying down the principal balance on your mortgage. A prepayment can be made at any time during the year, as long as making that prepayment doesn’t completely pay off your mortgage.
National Bank also allows you to increase your mortgage payment by up to 100% on all closed term mortgages, enabling you to further pay off your mortgage sooner.
Mortgage cash back offer
Up until October 31st, 2020, you could be eligible for a cash back offer on mortgages with a minimum commitment of four years. For mortgages between $100,000 and $249,999, you get $750 cash back. On mortgages of $250,000 to $499,999 you get $1,500 cash back. On mortgages of $500,000 or more, you get $2,500 cashback. This cash back offer is only available for insured owner-occupied residential mortgages.
National Bank home equity line of credit
National Bank offers a traditional home equity line of credit, where you can borrow up to 65% of the value of your home provided that you have at least 35% equity in your home. The interest rate charged on the line of credit is a variable rate, and the line of credit has a $7/month per account fixed fee.
Your National Bank home equity line of credit is available to use and reuse whenever you need it. At the minimum, you only have to make interest and insurance payments on borrowed funds. Withdrawn principal amounts can be paid pack on your own schedule.
The Made-to-measure mortgage combines a line of credit along with a traditional mortgage, all into one product. If you make a downpayment of at least 20% on your home purchase, you can finance 65% of it via a line of credit portion and 15% through a traditional term mortgage portion. In total, you can borrow up to 80% of your home's value through the National Bank Made-to-measure mortgage.
Just like the standard home equity line of credit, the Made-to-measure mortgage’s line of credit portion has a variable rate and a flat $7/month per account fee. With the loan portion of your Made-to-measure mortgage, you'll have to choose either a fixed or variable interest rate and make payments according to a predefined schedule.
As you pay down your mortgage portion, the repaid principal will become available to use in the line of credit portion. Your line of credit can be accessed from ABMs or through online banking.
Getting pre-approved for a mortgage, with National Bank, certifies that you have the necessary financing available to purchase a property. It guarantees that National Bank will honor your financing terms and interest rate for 90 days, allowing you enough time to shop around for a home.
With National Bank, you can get pre-approved for a mortgage online. Once you’ve submitted your application online, a National Bank mortgage advisor will contact you to finalize your application. Likewise, if you prefer to meet in person to get pre-approved, you can set up a meeting with a National Bank mortgage advisor directly who can guide you through the process.
National Bank mortgage advisors
National Bank has a network of mortgage advisors that can meet, wherever and whenever it’s convenient for you. They can help you address any questions you may have about the mortgage process, help you get pre-approved for a mortgage, all the way through to closing your purchase.
Beyond the initial mortgage and purchase process, they can also help you with renewing or refinancing your mortgage. To find a National Bank mortgage advisor, you can call or email them directly to set up an appointment. Or you can contact your closest National Bank branch to set up a meeting.
Renew your National Bank mortgage
When the term of your mortgage approaches its maturity date, you should start thinking about how you want to renew it. You may consider refinancing your mortgage with a National Bank Made-to-measure line of credit, renegotiating for a better rate, or considering other lenders. Regardless of what you do, it’s a great time to access your current financial situation and explore your mortgage options.
About National Bank
National Bank has over 420 branches across Canada and over 2.9 million customers, making it the sixth-largest bank in the country. The bank is headquartered in Montreal, Quebec. Most of National Bank's business comes from Quebec, but the bank has been making inroads into the other Canadian provinces.