As the leading bank in Quebec, National Bank of Canada is one of the first places Canadians turn for a home mortgage. We are the top site online to find the best National Bank mortgage rates, as we keep the bank’s current rates updated on this page, and we make it easy for you to apply for a National Bank mortgage. We also provide this overview of the main facts about National Bank of Canada to help you decide whether or not this institution is right for you. Continue reading to find out more about National Bank.
National Bank of Canada Mortgage Options
Before you apply for a mortgage from the National Bank of Canada, you should know the different mortgage products that the bank offers its customers. Here are the main mortgage loan types available:
• Fixed-rate mortgages, which are great for those who want predictability in their mortgage payments, are offered by National Bank in both open and closed mortgage formats. Since the interest rate on a fixed-rate mortgage never changes, neither does the portion of your mortgage payment that goes toward principal and interest. Fixed-open mortgages are available in 6-month and 1-year terms, and they do not have a prepayment penalty. Because of the short length of these terms, open mortgages are a good idea for those who are experimenting with different mortgage types and those who expect to pay off their mortgage within a short period of time. Closed mortgages have a prepayment penalty, but the interest rate is lower than the rate of an open mortgage. National Bank’s closed mortgages are available in 3-month, 6-month, 1-year, 2-year, 3-year, 4-year, 5-year, 7-year and 10-year terms.
• Variable-rate mortgages offer customers the lowest National Bank mortgage rates. National Bank has one variable-rate mortgage option with a 5-year term. This is a closed mortgage, and the interest rate is the prime rate plus 0.20 percent as of June 2012. Because it is a variable-rate mortgage, the interest rate and required payment may change from month to month. If the rate goes up, your monthly payment increases, and if the rate goes down, your required payment decreases. You can include an option in the loan that keeps your payments fixed unless there is a drastic change in interest rates. In this case, the amount of your fixed payment that goes toward your loan principal depends on the interest rate.
• Capped-rate mortgages from National Bank of Canada are great for those who want the lower rates of the variable mortgage and the assurance of knowing that increases in your interest rate during the loan term have a limit. The capped-rate mortgage is a form of the variable-rate mortgage in that the interest rate may change from month to month. (As of June 2012, the monthly rate is the prime rate plus 0.35 percent.) However, the capped-rate mortgage also includes a feature that makes it similar to a fixed-rate mortgage. With a capped-rate mortgage, the bank sets a maximum interest rate that is the most you can ever be charged on the loan (the 5-year mortgage rate at the time of signing). When current National Bank mortgage rates go above the limit, your payments do not go up if you have a capped-rate mortgage. The same is not true when variable mortgage rates fall below the limit. In that case, your payment will match the current rate, which means you will see a decrease in your payment to match the current rate.
• Made-to-Measure Mortgages are unique products that combine many different mortgage elements. Essentially, they combine a line of credit with a mortgage, allowing you to consolidate debt. You make one payment, which is applied to your mortgage and other line or lines of credit. Each different component can have a different term and interest rate for greater flexibility.
• All-in-One Banking™ allows you to consolidate your banking into one account. With this mortgage option, you are extended a mortgage and a line of credit. When you make deposits, your funds go toward paying down the mortgage and your credit line, against which you incur debt every time you pay a bill. If you want to simplify your banking transactions, this is likely the product for you.
What Makes the National Bank of Canada Different from Other Mortgage Lenders?
The main reason you should consider National Bank of Canada mortgage rates is the diversity of products and repayment options that the bank makes available to its customers. Few other banks have products that are similar to the Made-to-Measure Mortgage and All-In-One Banking™. Moreover, not every bank has the variety of payment options that National Bank offers to help you get out of debt faster.
For instance, you can do the following and avoid prepayment penalties if you have a fixed-rate mortgage from National Bank:
• increase the amount of your mortgage payment once a year (up to double your existing payment)
• make extra payments each year that total up to 10 percent of the original principal balance
• pay an extra principal payment monthly on your payment date (up to the total of the original payment, including both interest and principal).
Those who have a variable-rate mortgage can convert it to a fixed-rate mortgage at any time for the rest of their current term or longer.
National Bank of Canada’s Mortgage Application Process
Applying for and getting approval for a mortgage from National Bank is not difficult. Here is a brief summary of the process:
1. Click on the interest rate you prefer on this page to go to the National Bank mortgage application.
2. Choose whether you want pre-approval, a mortgage for a home you have under contract, or the renewal or transfer of your loan.
3. Fill out the mortgage application. You will need to have an income and know your monthly bills and existing loan commitments.
4. After you submit your application, an advisor will contact you to finish the process.
As with most of the other major banks in Canada, you should have no problem qualifying for a mortgage if you have an income that will cover it and good credit.
Interesting Facts about the National Bank of Canada
There is more to this institution than simply National Bank mortgage rates:
• Canadian Mortgage Trends has twice awarded National Bank’s All-In-One Banking™ the distinction of “Mortgage of the Year.”
• Bloomberg Markets said in 2011 that National Bank is the 3rd strongest bank in the world.
• National Bank of Canada opened its first branch in 1860.
Apply for a National Bank Mortgage Today
Now that you have read up on National Bank of Canada, it is time to get your mortgage application started. Click on the interest rate you prefer on this page to begin the process.
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