National Bank of Canada mortgage penalty calculator.
Estimate the penalty to break a National Bank of Canada fixed mortgage. National Bank of Canada charges the greater of three months' interest or a posted-rate IRD, which subtracts the discount you got at signing from National Bank of Canada's current posted rate — why Big-6 penalties often run far higher than a monoline's. Mortgage Squad Advisors is an independent brokerage and is not affiliated with, endorsed by or sponsored by National Bank of Canada. National Bank of Canada marks are trademarks of National Bank of Canada. Estimates only; your bank’s written payout statement or commitment is final. Rates are illustrative scenarios as of October 2026, not verified bank rates; check the bank’s site or enter your written quote.
Fact-checked by Surrayya Afzal, Principal Broker, FSRA #M14001433· Last reviewed October 2026 · Reviewed monthly
To break a National Bank of Canada fixed mortgage you pay the greater of three months' interest or posted-rate IRD. Because National Bank of Canada measures your contract rate against its current posted rate for the remaining term minus the discount you received at signing, the comparison rate is low and the IRD can run into five figures — often far more than a monoline lender’s IRD, which usually compares against its current offered rate rather than a posted rate on the same balance. Enter your balance, rate and months left for an estimate; the exact figure needs National Bank of Canada's written payout statement.
Your inputs
Which penalty applies?
National Bank of Canada charges the greater of these two — the highlighted bar is your penalty.
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Breaking a National Bank of Canada mortgage: what the penalty really is
When you break a closed National Bank of Canada fixed mortgage before maturity, National Bank of Canada charges the greater of three months’ interest or the Interest Rate Differential (IRD). Three months’ interest is simple — roughly your balance times your rate, divided by four. The IRD is where National Bank of Canada, like every Big-6 bank, gets expensive: it uses a posted-rate comparison. National Bank of Canada takes its current posted rate for a term close to the time left on yours (the 6.79% default is an illustrative scenario, not a verified current rate) and subtracts the discount you received when you signed. That lower comparison rate widens the gap against your contract rate, and the gap, prorated over the months left in your term, is what can push National Bank of Canada penalties into five figures on a balance where a lender using its discounted rates would charge much less.
Why the National Bank number surprises people
National Bank blends the two-year and three-year posted rates in proportion to the 28 months remaining, deducts the original discount, and adds one month of interest up to $500 to the IRD. National Bank permits up to 10% of the original principal per calendar year and up to double the regular payment. Check your own mortgage terms. The penalty is largest early in the term — because IRD scales with the months remaining — and shrinks toward maturity, at which point three months’ interest eventually becomes the bigger of the two. The single most important thing to know is that the estimate above is only as good as the comparison rateNational Bank of Canada plugs in, and that figure is confirmed only in a written payout statement. Get one before you commit to anything.
Your exit options
You have more room than the payout statement implies. If you’re moving, port the mortgage to the new property — most National Bank of Canada products allow it with no penalty. If you just want a better rate, ask National Bank of Canada to blend-and-extend rather than break. Use your annual prepayment privilege to shrink the balance first. And the cleanest exit is always to wait for renewal, where there is never a penalty. If breaking still makes sense, run the figure through the refinance calculator to confirm the savings clear the penalty — then send us the payout statement and we’ll verify the real number and line up your exit across 100+ lenders.
How does National Bank of Canada calculate the prepayment penalty?
Why is the National Bank of Canada penalty so much higher than a monoline's?
What's the exact National Bank of Canada payout — can I trust this estimate?
How can I avoid or reduce the National Bank of Canada penalty?
Is breaking my National Bank of Canada mortgage worth the penalty?
Does National Bank of Canada use a collateral charge — and does that matter?
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