Types of the National Bank of Canada mortgages
- Mortgage loans are fixed, variable, and made-to-measure, closed and open. Variable rates of the NBC fluctuate with the prime rate: the current special offer is a 5-year variable rate of 4.35% (Prime rate – 0.35%). Fixed-rate mortgages offer a variety of repayment terms: from 3 months to 10 years with rates of 5.19% — 6.94%. The 6-month and 1-year open mortgage rate is 9.15%. Mortgage repayment terms let you make additional payments, increase the frequency of your repayments, and make early repayment penalty free, depending on the mortgage type. A prepayment fee is charged if you refinance, prepay in full or negotiate the new terms and conditions of your mortgage before the end of the term, prepay more than 10% of the principal amount annually, or transfer your mortgage to another financial institution. A special offer gives you cashback up to $3,000, depending on the home loan amount.
- Self-employed mortgages are designed for self-employed workers or business owners who cannot provide standard proof of income.
- A HELOC called All-in-one could be a single line of credit consisting of a mortgage loan and a line of credit. It allows you to buy a property and use funds for other expenses.
How to apply for an NBC mortgage?
Mortgage pre-approval is available online. It guarantees the amount and interest rate for 90 days, lets you know your mortgage affordability, calculates your down payment ahead of time and gets expert advice.
- Prepare your finance, income, personal information, and details about the wanted property for the meeting with your mortgage advisor.
- Get pre-approved online by clicking «Apply» or «Get pre-approved» on the website.
- The specialist will get in touch with you.
- Find your dream home and make an offer.
- Have the property appraised by a professional certified by the Bank.
- Once financing is approved, sign the official documents.
Mortgage refinancing or transfer application is available online. Fill in your email address, personal and income information, and details of your current mortgage loan, and a mortgage expert will contact you within the next two business days to complete your request.
Requirements
To be eligible for a mortgage loan, you should:
- Have reached the age of majority in the province where you’re applying. The mortgage pre-approval is only valid for a property located in Canada, excluding the territories (Yukon, Nunavut, and the Northwest Territories).
- Provide two pieces of ID, proof of down payment, income-related documents, statements for bank accounts or investments at another financial institution
- To apply online own, in total, one property or less, whether it’s owned jointly, individually, or with a third party.
- For transfer or refinance, the property must have four units or less.
To qualify for a mortgage for the self‑employed, you should:
- have been a self-employed worker or small business owner for at least two years, and show two years' worth of sound financial and credit management
- purchase or refinance a property with no more than two dwellings, one of which must be owner-occupied. The property value can't be over $1,000,000, and the maximum loan amount is $600,000.
Pros and cons
Pros
- Flexible repayment terms
- Fixed, variable, and combined mortgages
- Opportunity to prepay without fee
- Cashback offers
- Transparent rate information at the website
- Get pre-approved online and assisted by a specialist
- Mortgage for the self‑employed
Cons
- Can't apply online (only online pre-approval, refinancing, or transfer application)
- Only 90 days of locked mortgage rate after the pre-approval
How to make a payment for an NBC mortgage?
You repay the mortgage loan in monthly installments, including interest, usually debited automatically from your bank account, as specified during the application. To make a down payment on your online bank: sign in, click «Overview» in the left menu, choose your Mortgage loan, click «Accelerated repayment» — «Edit my additional payment» — «Continue» and follow the directions. You may talk to your mortgage advisor to choose the best option.