National Bank penalty calculator
National Bank mortgage penalty calculator
Estimate what it would cost to break a National Bank fixed mortgage, using National Bank’s own posted rates (October 31, 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
$7,746 to $14,140
Range: formula not fully published
National Bank: higher of 3 months’ interest or 1 month’s interest (max $500) plus the interest differential. Its comparison rate isn’t published, so we show a range.
Moving to 5.04% would save about $8,678 in interest over the 22 months left, so you’d be $5,462 behind after the penalty (high end). Waiting for renewal, or porting, is likely cheaper.
Break-even new rate: 4.38%. Below that, breaking pays before your current term would have ended. Ignores legal, appraisal and discharge fees.
Waiting cuts the penalty
If posted rates stay where they are, waiting 6 months brings the estimate to $8,769; 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. Not stated on the National Bank pages we could read; ask the bank.
- 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 (Oct 31, 2026) and the formula it publishes. This shows how much the bank’s penalty rule and posted table matter.
| Bank | Compares with | 3 months’ | Estimated penalty |
|---|---|---|---|
| RBC | 2-yr posted 5.74% | $7,080 | $9,377 |
| TD | 2-yr posted 5.39% | $7,080 | $12,361 |
| Scotiabank | 2-yr posted 5.24% | $7,080 | $13,640 |
| CIBC | 2-yr posted 5.24% | $7,952 | $13,640 |
| National Bank | 2-yr posted 5.24% | $7,080 | $7,746–$14,140 |
| BMO | 2-yr posted 4.94% | $7,080 | $7,080–$16,197 |
Estimates use simple interest over the months left (as in FCAC’s example); RBC, TD and Scotiabank say they discount to present value, which lowers the real figure somewhat. Today’s month is taken from your device; rates are as published on October 31, 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.
- The page does not describe which rate the interest differential is measured against; check your loan contract.
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 October 31, 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 (not stated on the national bank pages we could read; ask the bank.), or wait: renew up to 4 months early with no penalty; protect a rate from 6 months out.
Sources
- Mortgage rates — National Bank, checked Oct 31, 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.