National Bank penalty calculator
National Bank mortgage penalty calculator
Short answer: National Bank charges the higher of 3 months’ interest or 1 month’s interest (max $500) plus the interest differential. Variable: 3 months’ interest. This calculator uses National Bank’s own posted rates (read November 2, 2026; from the MITEY lender-rate dataset) to price your mortgage and shows whether breaking pays before your term ends.
Estimate what it would cost to break a National Bank fixed mortgage, using National Bank’s own posted rates (November 2, 2026) and the penalty rule National Bank publishes. Then see whether breaking pays and how waiting cuts the cost.
National Bank · estimated cost to break today
$13,011
IRD applies
National Bank: the higher of 3 months’ interest at the posted rate, or 1 month’s interest (max $500) plus the interest differential against its current rate for the remaining term (interpolated between published terms).
Moving to 5.19% would save about $7,104 in interest over the 21 months left, so you’d be $5,908 behind after the penalty. Waiting for renewal, or porting, is likely cheaper.
Break-even new rate: 4.44%. Below that, breaking pays before your current term would have ended. Ignores legal, appraisal and discharge fees. For a full refinance break-even with fees, see Revalued.ca.
Waiting cuts the penalty
If posted rates stay where they are, waiting 6 months brings the estimate to $8,611; at maturity it’s $0. Early renewal at National Bank: Renew up to 4 months early with no penalty; protect a rate from 6 months out.
Three ways to pay less
- Prepay first. Using this year’s privilege first lowers the base the penalty is charged on (10% of the principal a calendar year, plus an extra payment up to your regular payment on each payment date.)
- Port instead of breaking. 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.
- Blend and extend. FCAC describes early renewal at a blended rate as a way to avoid a full penalty. Ask National Bank for a quote.
National Bank’s own penalty page ↗ · always get the bank’s written payout figure.
The same mortgage at each big bank
Same balance, rate, discount and time left, priced with each bank’s own posted table (Nov 2, 2026) and the formula it publishes. This shows how much the bank’s penalty rule and posted table matter.
| Bank | Estimated penalty | 3 months’ | Compares with |
|---|---|---|---|
| RBC | $8,951 | $7,080 | 2-yr posted 5.74% |
| TD | $11,799 | $7,080 | 2-yr posted 5.39% |
| National Bank | $13,011 | $7,952 | 1- and 2-yr rates, interpolated for 21 months 5.30% |
| Scotiabank | $13,020 | $7,080 | 2-yr posted 5.24% |
| CIBC | $13,020 | $7,952 | 2-yr posted 5.24% |
| BMO | $15,461 | $7,080 | 2-yr posted 4.94% |
Estimates use simple interest over the months left (as in FCAC’s example); RBC and Scotiabank say they use a present-value basis, which lowers the real figure somewhat. For a term over five years broken after year five, the Interest Act caps the charge at 3 months’ interest, and the analyzer applies that. Today’s month is taken from your device; rates are as published on November 2, 2026.
National Bank’s rule, in its own words
- Fixed rate: the higher of 3 months of interest or 1 month of interest (max. $500) plus the interest differential.
- Variable rate: 3 months of interest.
- National Bank’s guide defines the interest differential as the difference between the posted rate at the start of your term and its current standard rate for the remaining term; when no rate exists for that exact term, it interpolates linearly between the two nearest published terms. The 3 months’ interest and the 1 month’s interest are both at the posted rate.
- Mortgages from the former Canadian Western Bank have their own calculator: the IRD uses the current posted rate for the closest term, including your original discount, and a 20% annual lump-sum privilege.
National Bank posted rates used in the calculation
| Term | Posted rate |
|---|---|
| 1-year | 5.49% |
| 2-year | 5.24% |
| 3-year | 6.09% |
| 4-year | 6.05% |
| 5-year | 6.14% |
| 6-year | 6.40% |
| 7-year | 6.40% |
| 10-year | 6.80% |
Online estimates are a starting point. Ask National Bank for a written payout statement before you sign anything with another lender, or try National Bank’s own calculator.
Frequently asked questions
How does National Bank calculate its mortgage prepayment penalty?
Higher of 3 months’ interest or 1 month’s interest (max $500) plus the interest differential. Variable: 3 months’ interest. See the National Bank profile for the bank’s exact wording and source.
Which National Bank posted rate is used?
The posted rate for the term closest to the time left in your term. National Bank’s posted fixed rates on November 2, 2026: 1-year 5.49%, 2-year 5.24%, 3-year 6.09%, 4-year 6.05%, 5-year 6.14%, 6-year 6.40%, 7-year 6.40%, 10-year 6.80%.
How can I lower a National Bank penalty?
Use your prepayment privilege first (10% of the principal a calendar year, plus an extra payment up to your regular payment on each payment date.), ask about porting (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.), or wait: renew up to 4 months early with no penalty; protect a rate from 6 months out.
Sources
- Mortgage rates — National Bank, checked Nov 2, 2026
- Pay off your mortgage faster (prepayment and charges) — National Bank, checked Oct 31, 2026
- Reduce or avoid prepayment penalties — FCAC, checked Oct 31, 2026
Keep exploring
Other banks: RBC · TD · Scotiabank · BMO · CIBC
Educational information only, not financial, legal or tax advice. BankMortgages.ca is independent and is not affiliated with, endorsed by or paid by any bank named on this site. Bank terms change: confirm every rate and term with the lender and the official sources linked on each page before you act. Read the full disclaimer.
