Head to head · RBC vs National Bank
RBC 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, RBC charges about $7,520 less. Annual lump-sum room is similar. Neither wins everything, so get both quotes.
RBC 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%.
Similar: RBC 10% lump sum; National Bank 10% a calendar year.
RBC in our example: $12,690 vs $14,675 to break a new 5-year after 2 years if rates fall 1 point.
Similar: RBC up to 120 days; National Bank up to 4 months.
RBC Homeline Plan vs National Bank All-In-One: the limits and structure are in the HELOC row of the term sheet below.
National Bank suits someone who may break mid-term; RBC suits someone who wants Double-Up flexibility. Then take RBC’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
| RBC Royal Bank | National Bank | |
|---|---|---|
| 5-yr special / posted | 5.14% / 6.19% | 5.14% / 6.14% |
| Prime used | RBC Prime 4.70% | National Bank prime 4.70% |
| Prepayment | 10% lump sum a year, 10% payment increase every 12 months, plus Double-Up payments. | 10% of the principal a calendar year, plus an extra payment up to your regular payment on each payment date. |
| Fixed-rate penalty | Greater of 3 months’ interest or IRD vs RBC’s posted rate for a similar term, less your rate reduction. 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 when buying and selling at the same time; extra money can be blended at the current 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 | RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. | All-In-One: line of credit up to 65%, up to 80% with a mortgage; $7/month per account. |
| Early renewal | Up to 120 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 | RBC special | RBC posted | National Bank special | National Bank posted |
|---|---|---|---|---|
| 1-year | 5.14% | 5.74% | 5.49% | 5.49% |
| 2-year | 5.14% | 5.74% | 5.19% | 5.24% |
| 3-year | 5.09% | 6.25% | 5.09% | 6.09% |
| 4-year | 5.14% | 6.09% | 5.09% | 6.05% |
| 5-year | 5.14% | 6.19% | 5.14% | 6.14% |
| 6-year | — | — | — | 6.40% |
| 7-year | 5.25% | 6.50% | 5.34% | 6.40% |
| 10-year | — | 6.90% | — | 6.80% |
Worked example: the same mortgage at RBC 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.
| RBC | National Bank | |
|---|---|---|
| Compares with | 3-yr posted | 2- and 3-yr rates, interpolated for 30 months |
| Comparison rate after discount | 4.65% | 4.07% |
| 3 months’ interest | $6,348 | $8,268 |
| Penalty if you break now | $7,680 | $15,200 |
| Penalty if posted rates fall 1 point first | $19,680 | $27,200 |
| Most lump-sum room stated, on the original amount | $50,000 | $50,000 |
| Penalty after using this year’s lump sum first | $6,880 | $13,669 |
| Porting | Port when buying and selling at the same time; extra money can be blended at the current 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 RBC and National Bank differ most
- Breaking the same mortgage after rates fall a point costs $7,520 more at National Bank ($27,200 vs $19,680): RBC 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: $7,585 at RBC (3-yr posted) vs $15,018 at National Bank (2- and 3-yr rates, interpolated for 30 months).
- National Bank is the only one that interpolates between terms and adds up to $500, so its penalty slides month by month instead of jumping.
National Bank suits someone who may break mid-term; RBC suits someone who wants Double-Up flexibility.
This is the clearest formula contrast in the six. RBC jumps from one posted term to the next as your time left crosses a midpoint; National Bank interpolates between its two nearest published terms and adds one month’s interest (capped at $500), so its penalty slides smoothly. Both allow 10% lump sums a year, but National Bank adds an extra payment of up to your regular payment on each payment date, while RBC adds Double-Up.
Ask: Ask National Bank how it treats a partial month in the interpolation, and ask RBC which posted term applies on your payout date.
When would breaking cost less at RBC 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 | RBC penalty | National Bank penalty | RBC compares with | National Bank compares with |
|---|---|---|---|---|
| 54 | $15,595 | $18,212 | 5-yr posted | 4- and 5-yr rates, interpolated for 54 months |
| 42 | $13,576 | $14,415 | 4-yr posted | 3- and 4-yr rates, interpolated for 42 months |
| 30 | $7,585 | $15,018 | 3-yr posted | 2- and 3-yr rates, interpolated for 30 months |
| 18 | $7,982 | $11,085 | 2-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 RBC and National Bank?
The mover who can’t port: RBC or National Bank, month by month
Selling with 54 months left would cost $15,595 at RBC and $18,212 at National Bank, so RBC is the cheaper exit early in the term; with 6 months left it’s $5,961 against $7,764, and RBC is cheaper. Waiting from 54 to 6 months left saves $9,634 at RBC 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.
RBC 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:
| RBC | National Bank | |
|---|---|---|
| Starting rate (5-yr special) | 5.14% | 5.14% |
| Discount from posted | 1.05 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 RBC’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.
RBC vs National Bank: questions
Is RBC or National Bank better for a mortgage?
Neither wins on everything. National Bank suits someone who may break mid-term; RBC suits someone who wants Double-Up flexibility. 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, RBC charges about $7,520 less. Annual lump-sum room is similar. Neither wins everything, so get both quotes.
How do RBC 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, RBC compares with its 3-yr posted rate and National Bank with its 2- and 3-yr rates, interpolated for 30 months rate, giving $7,680 at RBC and $15,200 at National Bank. Each bank’s wording is on its profile: RBC, National Bank.
Is it cheaper to break a mortgage at RBC 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 RBC $15,595 vs National Bank $18,212; with 42 months left RBC $13,576 vs National Bank $14,415; with 30 months left RBC $7,585 vs National Bank $15,018; with 18 months left RBC $7,982 vs National Bank $11,085; with 6 months left RBC $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 RBC 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
- Mortgage rates — RBC Royal Bank, checked Nov 2, 2026
- Mortgage rates — National Bank, checked Nov 2, 2026
- Understanding mortgage prepayment charges — RBC Royal Bank, checked Oct 31, 2026
- Pay off your mortgage faster (prepayment and charges) — National Bank, checked Oct 31, 2026
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