Head to head · BMO vs National Bank
BMO vs National Bank mortgages: rates, prepayment, penalties and HELOCs compared
Short answer: Both advertise 5.14% for a 5-year fixed as of November 2, 2026. On the same $480,000 mortgage broken 30 months early after rates fall a point, BMO charges about $5,120 less. BMO gives more lump-sum room (20% vs 10%). Neither wins everything, so get both quotes.
BMO and National Bank compared on the terms that cost or save you money, from each bank’s own pages: which of the two fits which borrower. No ranking, no paid placement.
Bank pages checked November 2, 2026
Tie at 5.14%.
BMO (20% lump sum (Smart Fixed 10%) vs 10% a calendar year).
BMO in our example: $12,690 vs $14,675 to break a new 5-year after 2 years if rates fall 1 point.
BMO gives more room: BMO up to 180 days; National Bank up to 4 months.
BMO Homeowner ReadiLine vs National Bank All-In-One: the limits and structure are in the HELOC row of the term sheet below.
BMO for bigger prepayment room and a 180-day renewal window; National Bank for a gentler penalty curve. Then take BMO’s written offer to National Bank, or the other way round, and ask them to match it on the same term.
Term sheets side by side
| BMO Bank of Montreal | National Bank | |
|---|---|---|
| 5-yr special / posted | 5.14% / 6.09% | 5.14% / 6.14% |
| Prime used | BMO Prime 4.70% | National Bank prime 4.70% |
| Prepayment | 20% lump sum and 20% payment increase a year on closed mortgages; Smart Fixed 10% / 10%. | 10% of the principal a calendar year, plus an extra payment up to your regular payment on each payment date. |
| Fixed-rate penalty | Higher of 3 months’ interest or IRD vs BMO’s posted rate for the closest term, taking your discount into account. Variable: 3 months’ interest. | Higher of 3 months’ interest or 1 month’s interest (max $500) plus the interest differential. Variable: 3 months’ interest. |
| Portability | Port a fixed closed mortgage; extra money blended at the current fixed posted rate. | Rollover Mortgage: balance, rate and term move to a new National Bank mortgage for your next home, and the prepayment charge is recovered; no window stated. |
| HELOC | Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%. | All-In-One: line of credit up to 65%, up to 80% with a mortgage; $7/month per account. |
| Early renewal | Up to 180 days early, no penalty. | Renew up to 4 months early with no penalty; protect a rate from 6 months out. |
Posted and special rates by term
| Term | BMO special | BMO posted | National Bank special | National Bank posted |
|---|---|---|---|---|
| 1-year | — | 5.49% | 5.49% | 5.49% |
| 2-year | — | 4.94% | 5.19% | 5.24% |
| 3-year | 4.94% | 6.05% | 5.09% | 6.09% |
| 4-year | — | 5.99% | 5.09% | 6.05% |
| 5-year | 5.14% | 6.09% | 5.14% | 6.14% |
| 6-year | — | 6.29% | — | 6.40% |
| 7-year | — | 6.40% | 5.34% | 6.40% |
| 10-year | — | 6.80% | — | 6.80% |
Worked example: the same mortgage at BMO and at National Bank
You owe $480,000 on a $500,000 5-year fixed at 5.29%, signed when the posted 5-year rate was 6.89% (a 1.60-point discount). There are 30 months left and you need to sell without porting. The payment, about $3,064.75 a month, is the same at either bank; what differs is the exit.
| BMO | National Bank | |
|---|---|---|
| Compares with | 3-yr posted | 2- and 3-yr rates, interpolated for 30 months |
| Comparison rate after discount | 4.45% | 4.07% |
| 3 months’ interest | $6,348 | $8,268 |
| Penalty if you break now | $10,080 | $15,200 |
| Penalty if posted rates fall 1 point first | $22,080 | $27,200 |
| Most lump-sum room stated, on the original amount | $100,000 | $50,000 |
| Penalty after using this year’s lump sum first | $7,980 | $13,669 |
| Porting | Port a fixed closed mortgage; extra money blended at the current fixed posted rate. | Rollover Mortgage: balance, rate and term move to a new National Bank mortgage for your next home, and the prepayment charge is recovered; no window stated. |
Where BMO and National Bank differ most
- Breaking the same mortgage after rates fall a point costs $5,120 more at National Bank ($27,200 vs $22,080): BMO compares with its 3-yr posted rate and National Bank with its 2- and 3-yr rates, interpolated for 30 months rate.
- The gap is widest with 30 months left: $9,956 at BMO (3-yr posted) vs $15,018 at National Bank (2- and 3-yr rates, interpolated for 30 months).
- Prepayment room differs by $50,000 a year on a $500,000 mortgage (BMO 20% lump sum (Smart Fixed 10%), National Bank 10% a calendar year).
BMO for bigger prepayment room and a 180-day renewal window; National Bank for a gentler penalty curve.
BMO’s 20% lump sum is double National Bank’s 10%, though National Bank adds an extra payment up to your regular payment each payment date. On breaking, BMO’s tie rule can push you onto the higher posted rate at exactly 18, 30 or 42 months left; National Bank interpolates and adds a month’s interest capped at $500. BMO describes porting a fixed closed mortgage, with any extra money blended at its current fixed posted rate.
Ask: Ask National Bank how the Rollover Mortgage refund is timed before you list a home: you pay the charge at the sale and recover it when the new loan funds.
When would breaking cost less at BMO or at National Bank?
The same $500,000 mortgage, broken at five points in its 5-year term (balance paid down on schedule, today’s posted tables). Each bank’s comparison term changes at different months, so the gap opens and closes:
| Months left | BMO penalty | National Bank penalty | BMO compares with | National Bank compares with |
|---|---|---|---|---|
| 54 | $17,823 | $18,212 | 5-yr posted | 4- and 5-yr rates, interpolated for 54 months |
| 42 | $14,255 | $14,415 | 3-yr posted | 3- and 4-yr rates, interpolated for 42 months |
| 30 | $9,956 | $15,018 | 3-yr posted | 2- and 3-yr rates, interpolated for 30 months |
| 18 | $9,717 | $11,085 | 1-yr posted | 1- and 2-yr rates, interpolated for 18 months |
| 6 | $5,961 | $7,764 | 1-yr posted | 1-yr rate |
Who feels the difference between BMO and National Bank?
The aggressive pre-payer: $100,000 a year at BMO vs $50,000 at National Bank
Take a $500,000 5-year fixed at 5.29% at either bank and put the largest lump sum each bank states into it at every anniversary. At BMO (20% lump sum (Smart Fixed 10%)) you’d have paid it off before renewal, paying $67,523 in interest over the five years; at National Bank (10% a calendar year) you’d owe $166,253 at renewal, paying $95,720. Without lump sums you’d owe $444,528. Kept up, BMO’s room would clear the mortgage in about 4.8 years against 7.3 at National Bank. Most people won’t prepay this hard; if you will, this is the clause to choose on.
The early renewer: how soon you can lock in
With a 2027-06-30 maturity, BMO would let you renew from about 2027-01-01 (up to 180 days) and National Bank from about 2027-02-28 (up to 4 months). If rates are rising, the earlier window is worth having; if they’re falling, you can wait at either. Neither bank charges a penalty for renewing inside its window.
The mover who can’t port: BMO or National Bank, month by month
Selling with 54 months left would cost $17,823 at BMO and $18,212 at National Bank, so BMO is the cheaper exit early in the term; with 6 months left it’s $5,961 against $7,764, and BMO is cheaper. Waiting from 54 to 6 months left saves $11,862 at BMO and $10,447 at National Bank. If you might sell mid-term, porting beats both: see the porting row in the term sheet above and ask each bank for its window in writing.
BMO penalty calculator · National Bank penalty calculator · prices your own numbers.
A brand-new mortgage at each bank, broken after two years
A new 5-year fixed for $450,000 at each bank’s own 5-year special, discounted from its own posted rate, broken after 24 months. People usually break when rates have fallen, which is when the IRD bites, so we show both cases:
| BMO | National Bank | |
|---|---|---|
| Starting rate (5-yr special) | 5.14% | 5.14% |
| Discount from posted | 0.85 pts | 1.00 pts |
| Comparison rate after discount | 5.20% | 5.09% |
| 3 months’ interest | $5,782 | $6,908 |
| Penalty, posted rates unchanged | $5,782 | $6,908 |
| Penalty, posted rates 1 point lower | $12,690 | $14,675 |
Uses each bank’s published rule (see methodology); balance kept at $450,000 for a like-for-like comparison. “—” means the bank publishes no 5-year fixed special to start from (Scotiabank posts none; its specials are variable). Price your own mortgage in the penalty analyzer.
Bring BMO’s written offer to National Bank (or the other way round) and ask them to beat it on the same term. Then compare the penalty clause, because that’s where these two differ most.
BMO vs National Bank: questions
Is BMO or National Bank better for a mortgage?
Neither wins on everything. BMO for bigger prepayment room and a 180-day renewal window; National Bank for a gentler penalty curve. Both advertise 5.14% for a 5-year fixed as of November 2, 2026. On the same $480,000 mortgage broken 30 months early after rates fall a point, BMO charges about $5,120 less. BMO gives more lump-sum room (20% vs 10%). Neither wins everything, so get both quotes.
How do BMO and National Bank calculate prepayment penalties?
Both charge the greater of 3 months’ interest or an IRD on a closed fixed mortgage, and 3 months’ interest on a variable. On the same mortgage with 30 months left, BMO compares with its 3-yr posted rate and National Bank with its 2- and 3-yr rates, interpolated for 30 months rate, giving $10,080 at BMO and $15,200 at National Bank. Each bank’s wording is on its profile: BMO, National Bank.
Is it cheaper to break a mortgage at BMO or National Bank?
It depends on when. For the same $500,000 5-year fixed at 5.29% (posted 6.89% at signing), with 54 months left BMO $17,823 vs National Bank $18,212; with 42 months left BMO $14,255 vs National Bank $14,415; with 30 months left BMO $9,956 vs National Bank $15,018; with 18 months left BMO $9,717 vs National Bank $11,085; with 6 months left BMO $5,961 vs National Bank $7,764. Your own figure depends on your rate, discount and balance: try the penalty analyzer.
Can I switch from BMO to National Bank at renewal?
Yes. At maturity there is no prepayment penalty, and since November 21, 2024 a straight switch with the same amount and amortization no longer needs a new stress test. The new bank may cover legal and appraisal costs; your current bank may charge a discharge fee. See the renewal checklist.
Sources
- Today’s mortgage rates — BMO, checked Nov 2, 2026
- Mortgage rates — National Bank, checked Nov 2, 2026
- Paying off your mortgage faster (prepayment privileges, prepayment charges, portability) — BMO, checked Nov 2, 2026
- Pay off your mortgage faster (prepayment and charges) — National Bank, checked Oct 31, 2026
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