Mortgage penalty by lender / National Bank
National Bank mortgage penalty calculator
If your mortgage is with National Bank and you are thinking about breaking it early, this page sets out how National Bank describes its prepayment charge and lets you estimate the penalty for your own numbers. It is an estimate based on the information you enter. Only National Bank can give you the actual figure.
MortgageSkip is independent and is not affiliated with, endorsed by, or acting for National Bank. Lender details summarised from National Bank’s own published information, last reviewed September 28, 2026.
National Bank at a glance
- Fixed-rate closed mortgages
- The higher of three months' interest and the interest differential plus one month's interest (the one month capped at $500).
- Variable-rate closed mortgages
- Three months' interest.
- Annual prepayment privileges
- National Bank describes a prepayment of up to 10% of the initial principal each calendar year, and extra amounts added to a regular payment of up to one times the payment. Prepayments within these limits generally carry no charge; amounts above them usually do. Products differ, so you may wish to confirm yours.
- Online penalty calculator
- National Bank publishes its own prepayment charge calculator, which is the more authoritative estimate for an existing National Bank mortgage. Open National Bank’s calculator.
Estimate a National Bank penalty
The calculator below is pre-set to the way National Bank measures a fixed-rate penalty. Nothing you enter leaves your browser. The result is an estimate, not a quote.
Mode
Enter just the essentials. We'll fill in the rest.
Your current mortgage
Pre-set for National Bank, based on how it describes its prepayment charge. You can change it if your contract says otherwise.
Using a posted rate of 6.05% for the 3.0 years you have left, less a discount of 1.84 points worked out from your start date and rate. Posted rates are the big-bank average published by the Bank of Canada, 2026-09-23; your own bank’s may differ.
Minimum savings threshold
Only flag breaking as worthwhile if savings exceed this. Breaking involves legal fees and paperwork, so small savings may not be worth the effort.
Your break analysis
Technically yes — but below your savings threshold
Savings of $14,031 — below your $15,000 threshold
Breaking now would save about $14,031, which is less than the $15,000 you said would make it worth the effort. After legal fees and paperwork it may not be worth your time.
What to consider
Your payment drops by roughly $398 per payment.
Over the comparison window you pay $14,338 less, but owe $307 more at the end.
Estimated break penalty
IRD $9,291 vs 3-month interest $6,745 — IRD applied
IRD measured against 4.21%: posted rate less your original discount, the bank method
Measured the other way the IRD would be $14,798. Lenders differ, and only a payout statement settles it.
$9,291
If you stay
If you break
Balance detail at break date
Penalty uses the Canadian semi-annual compounding standard. Actual lender penalties vary by contract and only your lender can give you a real payout figure.
For informational purposes only — consult a licensed mortgage professional before deciding.
How National Bank measures the penalty
National Bank's guide describes the fixed-rate charge as the higher of three months' interest and the interest differential plus one month of interest, to a maximum of $500 for that month. The interest differential is the difference between the posted rate (the fixed rate National Bank published at the start of your term for a loan like yours) and its current standard rate for the remaining term, interpolated between published terms where needed. Because the posted rate at signing is your rate plus the discount you received, this behaves like the posted-rate-less-discount approach. The guide also describes the three months' interest on a fixed-rate loan as calculated at the posted rate, so it can be higher than a simple balance times your rate estimate. The guide is dated December 2022.
In the calculator this is the "big bank or credit union" setting: the interest rate differential is measured against a posted rate for the time left, less the discount you were given when you signed. The calculator uses the Bank of Canada's average big-bank posted rates, and National Bank's own posted rates may differ, which is one reason your figure may not match.
Every mortgage contract sets its own terms, and older or specialty products can differ from what a lender publishes today. If the scenario looks worth exploring, you may wish to ask National Bank for a payout statement, which is the figure that counts.
Source: National Bank, Mortgage prepayment and indemnities guide. Reviewed September 28, 2026. If something here has changed, we would like to hear about it through the contact page.
Questions about a National Bank penalty
- How does National Bank calculate its mortgage prepayment penalty?
- For a fixed-rate closed mortgage, National Bank describes the charge as: the higher of three months' interest and the interest differential plus one month's interest (the one month capped at $500). The IRD is measured against National Bank's posted rate, adjusted for the discount you received when you signed. Your mortgage contract governs, and only National Bank can give you the actual figure.
- What is the penalty for breaking a National Bank variable-rate mortgage?
- National Bank describes the charge on a variable-rate closed mortgage as: three months' interest. On a $400,000 balance at 5%, three months' interest is about $5,000.
- How much can I prepay on a National Bank mortgage without a penalty?
- National Bank describes a prepayment of up to 10% of the initial principal each calendar year, and extra amounts added to a regular payment of up to one times the payment. Amounts above these limits usually carry a prepayment charge. Privileges differ by product, so you may wish to confirm yours in your mortgage documents.
- Does National Bank have its own mortgage penalty calculator?
- Yes. National Bank publishes a prepayment charge calculator on its website. For an existing National Bank mortgage it is a more authoritative estimate than a general calculator like this one, and a payout statement from National Bank is the figure that counts.
- Why might National Bank's figure differ from this estimate?
- This calculator uses the Bank of Canada's average big-bank posted rates and the numbers you enter. National Bank's own rates, the exact term it compares against, how it counts the days remaining, and any fees can all change the result. These figures are estimates based on the information entered. MortgageSkip is not affiliated with National Bank.