Head to head · BMO vs National Bank
BMO vs National Bank mortgages: rates, prepayment, penalties and HELOCs compared
Two of Canada’s big banks, compared on the terms that cost or save you money, from each bank’s own pages. No ranking, no paid placement: just which one fits which borrower.
Bank pages checked October 31, 2026
Tie at 5.14%.
BMO (up to 20% (Smart Fixed 10%) vs 10% a calendar year).
BMO in our example: $14,040 vs $14,675 to break a new 5-year after 2 years if rates fall 1 point (high end of a range where a formula isn’t fully published).
BMO gives more room: BMO up to 180 days; National Bank up to 4 months.
BMO: Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%. National Bank: All-In-One: line of credit up to 65%, up to 80% with a mortgage; $7/month per account.
Pick on the clause you’re most likely to use: prepayment if you’ll pay down fast, the penalty rule and portability if you might move, the HELOC if you’ll re-borrow. Then ask the other bank to match.
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 | Up to 20% payment increase or lump sum (product-dependent); Smart Fixed is 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 | See BMO’s prepayment calculator and prepayment-options PDF (formula not on the pages we could read). | Higher of 3 months’ interest or 1 month’s interest (max $500) plus the interest differential. Variable: 3 months’ interest. |
| Portability | Not stated on the BMO pages we could read; ask BMO. | Not stated on the National Bank pages we could read; ask the bank. |
| 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% | 5.04% | 5.24% |
| 3-year | 4.94% | 6.05% | 5.04% | 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% |
Same mortgage, 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 | 0.95 pts | 1.00 pts |
| Compared with (3-yr posted less discount) | 5.10% | 5.09% |
| 3 months’ interest | $5,782 | $5,782 |
| Penalty, posted rates unchanged | $5,782 | $5,782 |
| Penalty, posted rates 1 point lower | $5,782–$14,040 | $5,782–$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 special rate to start from (Scotiabank shows specials only as APRs). 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. On the terms each bank publishes: lower advertised 5-year fixed: Tie at 5.14%. paying down faster: BMO (up to 20% (Smart Fixed 10%) vs 10% a calendar year). might break early: BMO in our example: $14,040 vs $14,675 to break a new 5-year after 2 years if rates fall 1 point (high end of a range where a formula isn’t fully published). renewing early: BMO gives more room: BMO up to 180 days; National Bank up to 4 months. re-borrowing equity: BMO: Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%. National Bank: All-In-One: line of credit up to 65%, up to 80% with a mortgage; $7/month per account. Get a written quote from both, and from a broker, for the same term.
How do BMO and National Bank calculate prepayment penalties?
BMO: See BMO’s prepayment calculator and prepayment-options PDF (formula not on the pages we could read). National Bank: Higher of 3 months’ interest or 1 month’s interest (max $500) plus the interest differential. Variable: 3 months’ interest.
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 Oct 31, 2026
- Mortgage rates — National Bank, checked Oct 31, 2026
- Mortgage prepayment calculator — BMO, checked Oct 31, 2026
- Pay off your mortgage faster (prepayment and charges) — National Bank, checked Oct 31, 2026
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