Head to head · Scotiabank vs National Bank
Scotiabank 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
Only National Bank publishes a 5-year special rate (5.14%).
Scotiabank (10%, 15% or 20% by option vs 10% a calendar year).
Scotiabank publishes its specials only as APRs, so we can’t build a like-for-like example. Compare penalty wording: Scotiabank “Greater of 3 months’ interest or IRD vs Scotiabank’s posted rate for the closest term, less your discount. Variable: 3 months’ interest.” vs National Bank “Higher of 3 months’ interest or 1 month’s interest (max $500) plus the interest differential. Variable: 3 months’ interest.”
Scotiabank gives more room: Scotiabank up to 6 months; National Bank up to 4 months.
Scotiabank: STEP: up to 80% (65% revolving); the 80% global limit steps down to 65% over 25 years. 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
| Scotiabank | National Bank | |
|---|---|---|
| 5-yr special / posted | — / 6.19% | 5.14% / 6.14% |
| Prime used | Scotiabank Prime 4.70% | National Bank prime 4.70% |
| Prepayment | 10%, 15% or 20% of the original principal a year, depending on the options chosen. | 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 Scotiabank’s posted rate for the closest term, less your discount. 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 | Listed as a way to avoid charges; not available on every mortgage solution. | Not stated on the National Bank pages we could read; ask the bank. |
| HELOC | STEP: up to 80% (65% revolving); the 80% global limit steps down to 65% over 25 years. | All-In-One: line of credit up to 65%, up to 80% with a mortgage; $7/month per account. |
| Early renewal | Up to 6 months early, no prepayment charge. | Renew up to 4 months early with no penalty; protect a rate from 6 months out. |
Posted and special rates by term
| Term | Scotiabank special | Scotiabank posted | National Bank special | National Bank posted |
|---|---|---|---|---|
| 1-year | — | 5.49% | 5.49% | 5.49% |
| 2-year | — | 5.24% | 5.04% | 5.24% |
| 3-year | — | 6.05% | 5.04% | 6.09% |
| 4-year | — | 6.09% | 5.09% | 6.05% |
| 5-year | — | 6.19% | 5.14% | 6.14% |
| 6-year | — | — | — | 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:
| Scotiabank | National Bank | |
|---|---|---|
| Starting rate (5-yr special) | — | 5.14% |
| Discount from posted | — | 1.00 pts |
| Compared with (3-yr posted less discount) | — | 5.09% |
| 3 months’ interest | — | $5,782 |
| Penalty, posted rates unchanged | — | $5,782 |
| Penalty, posted rates 1 point lower | — | $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 Scotiabank’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.
Scotiabank vs National Bank: questions
Is Scotiabank or National Bank better for a mortgage?
Neither wins on everything. On the terms each bank publishes: lower advertised 5-year fixed: Only National Bank publishes a 5-year special rate (5.14%). paying down faster: Scotiabank (10%, 15% or 20% by option vs 10% a calendar year). might break early: Scotiabank publishes its specials only as APRs, so we can’t build a like-for-like example. Compare penalty wording: Scotiabank “Greater of 3 months’ interest or IRD vs Scotiabank’s posted rate for the closest term, less your discount. Variable: 3 months’ interest.” vs National Bank “Higher of 3 months’ interest or 1 month’s interest (max $500) plus the interest differential. Variable: 3 months’ interest.” renewing early: Scotiabank gives more room: Scotiabank up to 6 months; National Bank up to 4 months. re-borrowing equity: Scotiabank: STEP: up to 80% (65% revolving); the 80% global limit steps down to 65% over 25 years. 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 Scotiabank and National Bank calculate prepayment penalties?
Scotiabank: Greater of 3 months’ interest or IRD vs Scotiabank’s posted rate for the closest term, less your discount. 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 Scotiabank 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 — Scotiabank, checked Oct 31, 2026
- Mortgage rates — National Bank, checked Oct 31, 2026
- What you need to know: mortgages and mortgage prepayment charges (PDF) — Scotiabank, checked Oct 31, 2026
- Pay off your mortgage faster (prepayment and charges) — National Bank, checked Oct 31, 2026
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