Head to head · RBC vs National Bank
RBC 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%.
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 (high end of a range where a formula isn’t fully published).
Similar: RBC up to 120 days; National Bank up to 4 months.
RBC: RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. 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
| 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. | Not stated on the National Bank pages we could read; ask the bank. |
| 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% | 5.04% | 5.24% |
| 3-year | 5.09% | 6.25% | 5.04% | 6.09% |
| 4-year | 5.04% | 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% |
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:
| RBC | National Bank | |
|---|---|---|
| Starting rate (5-yr special) | 5.14% | 5.14% |
| Discount from posted | 1.05 pts | 1.00 pts |
| Compared with (3-yr posted less discount) | 5.20% | 5.09% |
| 3 months’ interest | $5,782 | $5,782 |
| Penalty, posted rates unchanged | $5,782 | $5,782 |
| Penalty, posted rates 1 point lower | $12,690 | $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 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. On the terms each bank publishes: lower advertised 5-year fixed: Tie at 5.14%. paying down faster: Similar: RBC 10% lump sum; National Bank 10% a calendar year. might break early: RBC in our example: $12,690 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: Similar: RBC up to 120 days; National Bank up to 4 months. re-borrowing equity: RBC: RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. 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 RBC and National Bank calculate prepayment penalties?
RBC: Greater of 3 months’ interest or IRD vs RBC’s posted rate for a similar term, less your rate reduction. Variable: 3 months’ interest. 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 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 Oct 31, 2026
- Mortgage rates — National Bank, checked Oct 31, 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
Keep exploring
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.