Press Releases

Is the mortgage rate the only determining factor in selecting a mortgage solution ?

Montreal, 15 March 2004 -

National Bank Survey

A survey of Quebec homeowners conducted by National Bank shows that, other than already being a customer of the institution, interest rates and service quality are the two factors that influence consumers the most when it comes to choosing their mortgage1. All else being equal, these two criteria show how important it is to offer attractive solutions and to do business with a team of advisors who are specialized, accessible and available.

"Moreover, many of our customers have remained with National Bank for years, largely because of the specialized expertise of our advisors, the availability of our services 7 days a week, and our effective after-sales support. Our mortgage solutions are also among the most economical, which is another reason for our reputation. They meet the needs of both first-time homebuyers and those who are renewing their mortgages and want to get the most for their money," said Jean Blouin, Vice-President, Retail Credit and Investment Solutions.

With the mortgage season in full swing, National Bank is offering two attractive and competitive solutions: the fixed-rate mortgage with a cash rebate of 6% of the value of the loan, which can be used as a down payment on a new property, and the Money-Saver Mortgage, which is currently offering a promotion of $0 in interest for the first 6 months of a 5-year term. The customer pays no interest during this promotional period.

Fixed-rate mortgage

Homeowners who choose this mortgage receive a cash rebate of 6% of the value of the loan, money that can be used as a down payment on the purchase of a property or to pay legal, transfer, or inspection fees or any other costs related to purchasing a property. On a $100,000 mortgage with a 90-month term, for example, the customer would receive a cash rebate of $6,000 when the loan is disbursed. Customers enjoy fixed payments throughout the term, which protects them against interest rate hikes during this period. This is an ideal formula for first-time buyers.

Money-Saver Mortgage

With a Money-Saver Mortgage, the owner pays no interest ($0) during the first six months of a 5-year term. After the promotional period, the interest rate applied is the same as on a 3-month term, less 0.35%, and is adjusted every three months. Since the interest rate may vary quarterly, the mortgage payments will also vary. This approach helps customers save substantially and pay off the principal faster, since the first six months of payments (interest-free) are applied directly to the principal.

1 OMNI+ survey conducted by Le Groupe Gignac communication marketing for National Bank among 476 Quebec homeowners over the age of 18. The margin of error is ± 4.5% with a 95% confidence interval.

About National Bank

National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its customers elsewhere in the world. National Bank offers a full array of banking services, including corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management, as well as mutual fund and retirement plan management. National Bank has close to $81 billion in assets and, together with its subsidiaries, employs almost 17,000 people. The Bank's securities are listed on the Toronto Stock Exchange (NA: TSX). For more information, visit the Bank's website at www.nbc.ca.

Information: (The telephone number and e-mail address provided below are for the exclusive use of journalists and other media representatives.)

Denis Dubé
Director – Public Relations
National Bank of Canada
Tel.: (514) 394-8644
E-mail: denis.dube@nbc.ca