National Bank’s Made-to-Measure Mortgage

What is National Bank’s made-to-measure mortgage? [1],[2]

National Bank’s made-to-measure mortgage gives you the option of combining various loan features (terms, rates, payment frequencies, etc.). This solution therefore makes it possible to customize your home’s mortgage based on your individual needs. When you meet with a National Bank advisor to discuss your needs, together you can personalize a mortgage financing solution according to your budget, risk tolerance and overall financial commitments.

Combination of products

Source : iStockPhoto

You can divide your National Bank mortgage into any number of portions or sub-accounts. Based on the options offered by your National Bank advisor, each portion can have its own interest rate, term, payment frequency and amortization period. For even greater flexibility, it is also possible to integrate a mortgage loan into an All-In-One BankingTM mortgage line of credit! [3]

Customizable solution

Thanks to its multiple portions, National Bank’s made-to-measure mortgage adjusts to your financial commitments now and in the future. You can consolidate all your debts while continuing to monitor each of your projects separately. As a result, if your needs change, you can modify the conditions of one portion of the mortgage without having to renegotiate all your mortgage financing.4

Structure of the made-to-measure mortgage

Let’s take as an example a young couple looking to buy their first home.

  • They have to set aside their down payment, but also want to keep some money for unexpected expenses.
  • They want stable payments.
  • They’d like to save on interest.
  • They’d like to protect against higher interest rates that may be in effect when it comes time to renew.

All this is now possible with National Bank’s made-to-measure mortgage. It’s simply a matter of dividing the mortgage into several portions with specific features for each portion.

Example of the made-to-measure mortgage structure
$180,000 mortgage financing
33% All-In-One 34% fixed-rate mortgage loan with a 2-year term 33% fixed-rate mortgage with a 5-year term
Adjust the payments according to your budget Enjoy short-term rates, which are usually lower Get protection against interest rate fluctuations

Advantages of the made-to-measure mortgage

By diversifying your investments, you can ensure greater stability and reduce risk. Now that same strategy can be applied to your financial commitments. When you structure your mortgage into separate portions with different rates and terms, you are able to reduce the impact of possible interest rate increases at a later date.

Combine fixed and variable rates

With the made-to-measure mortgage, you don’t have to choose between having stable payments and saving on interest. You can combine fixed and variable rates…and get the best of both worlds.

Spread out your mortgage terms

By spreading out your terms with the made-to-measure mortgage, you can reduce your exposure to the risk of future rate increases while potentially saving on interest thanks to short-term rates, which tend to be lower than the rates on longer terms.

Get repayment flexibility

With the made-to-measure mortgage, a portion of your mortgage can be structured as a National Bank All-In-One Banking™ mortgage line of credit. You can therefore decide for yourself how much you want to pay on that portion by calibrating your payments with your income cashflow. (Please note, however, that the applicable interest and insurance premiums remain payable in all cases.)

For more information about the made-to-measure mortgage, please contact National Bank:



[1] © 2011 National Bank of Canada. All rights reserved. Any reproduction, in whole or in part, is strictly prohibited without the prior written consent of National Bank of Canada.

[2] This document is provided by National Bank for information purposes only, and creates no legal or contractual obligation for the Bank. The details of this service offering and the conditions described herein are subject to change. Subject to credit approval by National Bank.

[3] Subject to credit approval by National Bank. Certain restrictions apply if the financing exceeds 80% of the property value.

4 Certain conditions apply. Penalties may be payable in some cases.

TM National Bank All-In-One Banking is a trademark of National Bank of Canada.