Personal
Home Bank accounts
Credit cards
Borrowing
Mortgages
Savings and investments
Insurance
Wealth Management
Home
CLOSE
FAQ icon
FAQ icon
FAQ icon
Icône FAQ

Frequently Asked Questions

Borrowing

On this page

Common questions

Tips for achieving your goals

Money bag icon
Airplane icon
Airplane and globe icon
Family icon
Palm tree icon
Suitcase icon

Definitions

Borrowing

Have an idea in mind, but don't have the funds to see it through? The Bank can loan you money, which you'll pay back with interest. Talk to one of our experts.

Your credit report

Your credit report is a record of your credit history. It sets out information about the types of debt you have, the amounts due and whether you pay your bills on time.

In Canada, many financial institutions, landlords and other service providers check your credit report before granting a loan, a lease or various other services.

Fixed rate

The rate stays the same throughout the term. Choose a fixed rate if you want to know exactly how much interest you'll pay throughout the loan term.

Variable rate​

The rate can go up or down based on fluctuations in the prime rate1. Choose a variable rate if you want to save money when rates drop.

Guarantors and co-borrowers

Guarantors and co-borrowers are equally responsible for repaying the loan in full if the primary borrower fails to do so. The difference? A guarantor can co-sign a student line of credit or credit card application. A co-borrower is required for any other type of financing.

General

What are your rates on loans?

Consult our rates for personal loans and lines of credit page for sample rates.

Please note that rates may be adjusted based on your credit history and authorized credit limit. Make an appointment with an advisor at a branch to find out more about rates.

What's the difference between a loan and a line of credit?

Choose a line of credit if you would like to have access to an emergency fund or improve your cash flow. You'll only be required to pay the interest and can easily access your credit.

Choose a personal loan if you're making a major purchase or carrying out a project. You can enjoy flexible repayment terms and accelerate your payments without penalty.

I took out a loan with my spouse. What happens if we separate?

When you take out a loan with your spouse, you are considered co-borrowers. Because you co-signed for the loan, you are both responsible for it. A separation or divorce does not affect this. See all our advice on co‑borrowing.

What happens to my loan if I die, become disabled or am diagnosed with a critical illness?

In the event of your death, your co‑borrower or heirs must assume the payments. If you are disabled or diagnosed with a critical illness, you will remain entirely responsible for repaying the loan, even if your income decreases.

This is why it’s important to protect yourself and your loved ones by taking out loan insurance. Loan insurance covers your insured payments in the event of disability, critical illness or death, depending on the coverage you choose.

How do I get a credit report?

Request a copy of your credit report from national credit bureaus Equifax Canada or TransUnion. You can submit a request by mail for free, or online at your expense.

See our tips on building and maintaining a good credit score.

Loans


Personal loans

What rates does the Bank offer on personal loans?

The Bank offers two interest rate options for personal loans:

  • A fixed rate lets you know exactly how much interest you will pay for the entire loan duration
  • A variable rate lets you save money when rates drop

Rates are adjusted based on your credit history and the authorized loan amount. For more information, make an appointment with a branch advisor.

Consult our rates for personal loans and lines of credit page for sample rates.

Are there different types of personal loans?

You can choose between two main types of National Bank personal loan: a fixed-rate loan or a variable-rate loan.

  • fixed rate lets you know exactly how much interest you will pay for the entire loan duration and make regular payments.
  • variable rate is adjusted each month and lets you save when interest rates drop.

How do I apply for a personal loan?

If you're a Quebec resident, you have three options:

  • Complete the online loan application form. Once your request is received, an advisor will contact you within 48 hours.
  • Call us at 1-888-483-5628, Monday to Friday from 8:00 a.m. to 8:00 p.m. and Saturday from 9:00 a.m. to 5:30 p.m. (Eastern Time).
  • Make an appointment at a branch.

Not a Quebec resident? Make an appointment at a branch to apply for a loan.

Can I pay off my personal loan early? How much does it cost?

You can pay off your personal loan at any time without penalty.

How do I make additional payments on my personal loan?

Visit a branch or call us at 1-888-483-5628 to have a representative process this transaction.

Two key points:

  1. Additional payments are first applied to the interest incurred since your last payment. The remainder is applied to the principal of your loan.
  2. Making an additional payment will allow you to pay your personal loan off faster, but it won't change the amount of your regular payments.

I want to pay my loan in full. How should I proceed?

Visit a branch or call us at 1-888-483-5628 to repay your personal loan in full.

Within 30 days of receiving the full payment, we will send you an account statement showing that the balance of your loan is at zero.

Can I defer a loan payment?

If you are unable to make a payment, you can request a deferral. Terms and conditions vary by loan type.

  • Fixed-rate loan: You can have up to two payments per year deferred to the end of your term.
  • Variable-rate loan: You can only defer one payment per term.

To submit a deferral request, email us at telnat@bnc.ca or fill out the form on the Help and contact page from the left-hand menu of your online bank so we can access your file and check your eligibility.

Don't have a National Bank debit card? Call us at 1-888-483-5628 so we can access your file.

Two key points:

  1. When you defer a payment, the interest portion is still debited as scheduled.
  2. To be eligible, your personal loan must be in good standing and you must have made regular payments for the past six months.

Can I change my loan payment terms and conditions?

Change payment date

You can change your personal loan payment dates. Your bank account will be debited within 48 hours of your request to reflect the corresponding interest adjustment. You can only change the payment date once per calendar year.

To request a change, call us at 1-888-483-5628 or email us at telnat@bnc.ca or fill out the form on the Help and contact page from the left-hand menu of your online bank with the new payment date. Your interest will then be adjusted.

Change payment frequency

To change your payment frequency, you'll need to renegotiate your loan. The Bank will run a new credit check, and your borrowing terms and conditions may change.

To renegotiate your loan, get an appointment with a branch advisor.

When and how will I receive my personal loan statement?

Your personal loan statement shows the payments you've made throughout the year.

If you have a variable-rate personal loan, your statement will be produced and mailed to you in mid-January each year.

If you have a fixed-rate personal loan, a statement will not be mailed to you, but you can request a copy by calling 1‑888‑483‑5628.


Car loans

How do I apply for a car loan?

If you're a Canadian citizen or permanent resident, you can apply for financing online in just a few steps. You can also request a National Bank car loan at most dealerships.

I'm a newcomer to Canada. Can I still get a car loan?

If you're a newcomer to Canada, sign up for our exclusive banking offer to get preferred rates on a car loan3, even if you don't have a credit history4.

Are you a temporary resident? You can get financing with a 40% downpayment.

Permanent residents can get financing with a 25% downpayment.


RRSP Loans and Lines of Credit

What is an RRSP loan or line of credit?

Do you need funds to increase your RRSP5 contribution? By opting for a term loan or a line of credit6, you can maximize your income tax return and use it to repay the amount you borrowed, while saving for retirement.

Find out more about RRSP loans and lines of credit.

Which product is right for me? An RRSP loan or an RRSP line of credit?

 

RRSP loans5

RRSP lines of credit5,6

Rates and fees

Choice of fixed or variable rate

No management fees

Variable rate

$1/month management fee

Repayment terms

Preset payment schedule and flexible terms from 3 months to 10 years

Repay the loan at your own pace

Payments can be deferred

Defer your first payment by three or six months while you wait for your tax return

Only pay interest on what you borrow while you wait for your tax return

Access new funds

You will need to submit a new application

You can reuse the line of credit without applying for RRSP financing each year

Minimum credit limit

$1,000

$5,000

 

Apply

Apply

How do I use my RRSP loan or line of credit to buy a home (HBP) or go back to school (LLP)?

Take out an RRSP loan or line of credit5 and take advantage of the Home Buyers' Plan (HBP) to buy your first home, or the Lifelong Learning Plan (LLP) to go back to school.

Here's how:

  1. Take out an RRSP loan or line of credit.6
  2. Put the money you borrowed in your RRSP (up to your contribution limit) and keep it there for 90 days. Interest charges may apply.
  3. Withdraw the amount you need from your RRSP. Note that you will need to pay back your loan in full when you make this withdrawal.
  4. Get a tax refund for contributing to your RRSP and put it toward your downpayment or use it to finance your studies.
  5. Did you also withdraw funds from your personal RRSP savings? With the HBP, you will have up to 15 years to pay back the amount. With the LLP, you will have up to 10 years.

Lines of credit

How does a line of credit work?

With a line of credit, you can access the funds at any time and enjoy a lower interest rate than most credit cards. It's great when you need money fast—to make a payment on time or deal with an emergency.

What's the difference between the two types of personal line of credit offered by the Bank?

See the advantages of our different lines of credit7.

 

Personal Flex Line®

Integrated line of credit

How do I get it?

Offered when you apply

Offered only with The TotalTM banking package

How is it useful?

Use the money for a one-time expense

Protect against overdrafts and cash shortfalls

Credit limit

$5,000 or more

$500 to $5,000

 

Apply

Apply

How do I repay my line of credit?

You can repay the principal at your convenience, but each month you must make the minimum payment set out in your monthly statement. This payment includes interest, insurance premiums (if applicable) and any additional amounts required to ensure your account balance does not exceed your credit limit. The minimum payment must be made without using the line of credit.

The interest on a line of credit is calculated daily, as of the first day it is used. That's why it's a good idea to start repaying the balance as soon as possible. You can reuse the credit you've already repaid when you need it.

For more information on how a line of credit work, check out our page comparing financing solutions.

What are your rates on lines of credit?

Rates are adjusted based on your credit history and the authorized loan amount. For more information, make an appointment with a branch advisor.

Consult our rates for personal loans and lines of credit page for sample rates.

How do I apply for a personal line of credit?

To apply for a Personal Flex Line, you can:

If you are a Quebec resident, call us at 1-888-483-5628, Monday to Friday from 8:00 a.m. to 8:00 p.m. and Saturday from 9:00 a.m. to 5:30 p.m. (Eastern Time).

Where can I find the interest rate on my line of credit?

The interest rate on your line of credit appears on your monthly account statements, which can be accessed via your online bank.

Find out more by reading the My online bank FAQ.

How much of my line of credit can I repay at once? Is there a limit?

You can repay the balance of your personal line of credit in full or on part at any time. We recommend paying it off as soon as possible to reduce your interest payments.

What fees are associated with a personal line of credit?

For all lines of credit, you must pay the accrued interest each month. The interest is calculated daily, as of the first day it is used. That's why it's a good idea to start repaying the balance as soon as possible.

Management fees may be charged for some lines of credit, such as the home equity line of credit and the Personal Flex Line. Fees are also charged for certain transactions in the Personal Flex Line. You can pay for each individual transaction or choose a flat-fee package.

How do I close my line of credit?

There are two ways to close a line of credit:

  • Call us at 1-888-483-5628, Monday to Friday from 8:00 a.m. to 8:00 p.m. and Saturday from 9:00 a.m. to 5:30 p.m. (Eastern Time).
  • Make an appointment at a branch.

Can you give me some more information on the home equity line of credit?

The All-In-OneTM is a home equity line of credit that helps finance your home purchase2 and access your repaid principal8 without having to apply for another loan. Up to 65% of the value of the property can be in the form of a line of credit. You must provide a downpayment of at least 20% of the value of the property, and the rest of the financing, if applicable, must be in the form of a mortgage loan.

Learn about all the benefits of our home equity line of credit.

Student financing

What is the student line of credit?

The student line of credit9 is National Bank's credit solution for students. It lets you access credit easily using a debit card or online. While you're a student, you only need to repay the interest on any balance used.

How do I get a student line of credit?

To apply for a student line of credit, you can:

  • Complete the online application form. Once your request is received, an advisor will contact you within 48 hours.
  • Make an appointment at a branch.
  • Call us at 1-888-483-5628, Monday to Friday from 8:00 a.m. to 8:00 p.m. and Saturday from 9:00 a.m. to 5:30 p.m. (Eastern Time).

What's the difference between a personal loan and a student line of credit?

Learn about the main differences between a personal loan and a student line of credit. See our detailed comparison.

 

Personal loan

Student line of credit

How it works

You borrow a given amount, which you are required to pay back. To borrow more, you will need to submit a new application.                 

You are granted access to a pre-authorized credit limit. You can reuse your repaid credit.

Repayment

Based on a pre-established payment calendar. Several repayment periods offered.

While you're a student, you're only required to pay interest fees. You'll start repaying your balance used when you take on a full-time job or 12 months after the end of your full-time studies.9

Benefits

Simplify your life with regular payments.

Enjoy more freedom to manage your credit.

Disadvantages  

You'll start repaying your personal loan while you're still in school.

Adopt good spending habits to keep your debt levels in check.

Rate

Choice of:

  • A fixed rate for the security of a stable rate
  • A variable rate to save money when rates drop

Variable rate

 

Apply

Apply

What scholarships are available through the Bank?

Each year, dozens of students are awarded scholarships and internships at National Bank. Learn more about scholarships.

How soon do I need to repay my student line of credit?

As long as you are a full-time student, you won't be required to repay the balance of your student line of credit. Only the interest on your balance used has to paid each month You'll start repaying your line of credit when you take on a full-time job or 12 months after the end of your full-time studies.

Are you a student in medicine, dentistry, pharmacy, optometry, veterinary medicine, podiatry, chiropractic medicine or engineering? You won't have to repay your principal, interest or insurance premiums until 12 months after the end of your studies or following the loss of your full-time student status. However, you must respect your authorized credit limit. Interest will accrue during this period, and is capitalized monthly.

What are my options for financing my education?

Many solutions are available to finance your education so you can focus on your studies:

For more information, see our tips on financial aid for students.

Magic wand tip icon


Are you a student in engineering, law, business or healthcare? Save on your banking services with our offers for students.

How can I get a government student loan?

To apply for a student loan from the government:

  1. Pick up a Guarantee Certificate from the financial aid office at your educational institution.
  2. Make an appointment or visit a branch.

I can't afford to repay my government student loan. What should I do?

If you are a resident of Quebec, you can submit an application for a Deferred Payment Plan (DPP) to Aide financière aux études. This plan can grant you a payment deferral if your income does not allow you to repay your student loans.

Depending on your monthly income, you may be eligible for this program. Deferrals are granted by six-month periods, and you can defer payments for up to 60 months over a 10 year period. During the deferral period, the government will cover your interest payments. To check your eligibility or submit an application, go to the Aide financière aux études website.

N.B.: DPP applications take 4-6 weeks to process. We will continue to collect payments until we receive a notice of approval from the government.

If you are not eligible for this program, email us at telnat@bnc.ca or fill out the form on the Help and contact page from the left-hand menu of your online bank or call us at 1-888-483-5628. We'll help you find a solution.

 

 

 

 

 

 

 

Applying for financing

How much can I borrow?

Use our handy calculator to get a general idea of how much you could borrow based on your budget.

You can then calculate your monthly loan payments.

I'm applying for financing. What documents do I need?

The documents you need to submit with your application depend on the type of financing. Find out which documents you need depending on your situation.

This will help you prepare before you visit a branch or make an appointment with an advisor.

My credit application was refused. What can I do?

Your credit application could be refused if you have a poor credit score or no credit history. This is often true for young people. One solution is to find a trustworthy co‑borrower or guarantor for your financing application.

Managing your loans

My loan payment is at risk of being late. What should I do?

You can defer a personal loan payment. To submit a deferral request, email us at telnat@bnc.ca or fill out the form on the Help and contact page from the left-hand menu of your online bank. This will enable us to access your file and check your eligibility. Please note that you need to submit the request before the payment is due, otherwise you'll be required to pay it.

If you're experiencing financial problems, get an appointment with an advisor to discuss your situation and find solutions.

What is my loan balance?

You can check the balance of your loans and lines of credit your online bank from Accounts in the left-hand menu.

Can I remove a co-borrower from my loan?

You can remove a co‑borrower, but you'll need to renegotiate your loan. This means you'll have to qualify for a new loan on your own, which may affect your financing terms and conditions.

You will have to submit recent proof of income and of your assets and liabilities so we can reassess your borrowing capacity.

To renegotiate your loan, make an appointment with a branch advisor.

How can I improve my credit score?

A good credit score starts with good habits. Here's a few simple rules:

  • Stay within your budget
  • Only use one credit card
  • Pay off your balance, or at least your minimum payment, each month
  • Pay your bills on time

See our tips on building and maintaining a good credit score.

How can I better manage my debt?

If you're having trouble managing your debt, you should start by drawing up a repayment strategy. See our tips to help you get out of debt faster.

You can also make an appointment with your advisor for personalized assistance.

Tips for achieving your goals

Money pouch icon

My finances

See our tips and tricks for managing your finances more effectively.

See our tips

Airplane icon

My travel plans

Everything you need to know to plan your next vacation with peace of mind.

See our tips

Airplane and globe icon

My new life in Canada

Take advantage of our offers for newcomers to Canada and get all the information you need to manage your finances.

See our tips

Family icon

My family

We can help you power your ideas so you can turn your family plans into treasured memories.

See our tips

Palm tree icon

My retirement

Your retirement is the beginning of a new life—plan well and dare to dream!

See our tips

Suitcase icon

My business

Are you thinking of branching out on your own, launching a business or going back to school?

See our tips

Little details that matter

Legal disclaimers

® Personal Flex Line is a trademark of National Bank of Canada.

TM THE TOTAL is a trademark of National Bank of Canada.

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

1. "Prime" means the annual variable interest rate posted by National Bank, from time to time, and used by the Bank to determine the interest rates on the demand loans it grants in Canadian dollars in Canada.

2. Subject to credit approval by National Bank.

3. Subject to credit approval by National Bank. Certain conditions apply.

4. Subject to approval by National Bank. Certain conditions apply.

5. Subject to credit approval by National Bank. Consult your accountant or tax advisor to find out if this strategy is right for you.

6. Subject to credit approval by National Bank of Canada. Account statements are produced monthly. Interest accrues as soon as an amount is drawn on the line of credit. $1/month management fee Examples of credit charges calculated for a period of thirty (30) days based on the rate in effect on September 8, 2017:

  Average balance
Regular interest rate (no annual fees)

$500

$3,000

Prime rate + 1.50% (4.70%)

$1.93

$11.59

The prime rate means the annual variable interest rate posted by National Bank, from time to time, and used by the Bank to determine the interest rates on the demand loans it grants in Canadian dollars in Canada.

7. Subject to credit approval by National Bank of Canada. A statement is issued every 30 days. Upon receipt of each statement, the borrower must pay a minimum instalment to the Bank that corresponds to the sum of the interest charged to the account for the period covered by the statement, by depositing the amount of such interest in the account. The minimum payment must be made without using the line of credit. Examples of credit charges calculated for a period of thirty (30) days based on the rate in effect on September 8, 2017:

  Average balance
Regular interest rate (no annual fees)

$500

$3,000

Prime rate + 1.50% (4.70%)

$1.93

$11.59

8. Subject to not exceeding the maximum line of credit amount available, i.e., 65% of the value of the property.* The prime rate means the annual variable interest rate posted by National Bank, from time to time, and used by the Bank to determine the interest rates on the demand loans it grants in Canadian dollars in Canada.

9. Subject to credit approval by National Bank. The regular rate for a line of credit is the prime rate* + 3%, which corresponds to 6.20% (3.20% + 3%) as at September 8, 2017. As the applicable rate is based on the prime rate, it may fluctuate over time. No management costs. Account statements are produced monthly. Interest accrues as soon as an amount is drawn on the line of credit. Students must start repaying the principal when they have a full-time job or within 12 months of the end of their studies.

For students in medicine, dentistry, pharmacy, optometry, veterinary medicine, chiropractic and engineering: No principal and interest payments required until 12 months after the end of studies or loss of full-time student status (subject to not exceeding the authorized credit limit). However, interest accrues during this period and is capitalized monthly.

The prime rate means the annual variable interest rate posted by National Bank, from time to time, and used by the Bank to determine the interest rates on the demand loans it grants in Canadian dollars in Canada. Consult the prime rate webpage to find out today's rate.

Examples of credit charges calculated for a period of thirty (30) days for the student line of credit based on the rate in effect on September 8, 2017.

  Average balance

$5,000

$15,000

Prime rate + 3.00% (6.20%)

$25.48

$76.44

Understanding credit

Need advice?

Talk to one of our experts to get tailored advice.

Make an appointment

Telephone icon
Locator icon

How do I make additional payments on my personal loan?

To make additional payments via National Bank online, go to the personal loans section and click on the Repayment tab.

You can also call us at 1-888-483-5628 to have a representative debit the account used for your regular payments.

Two key points:

  1. Additional payments are first applied to the interest incurred since your last payment. The remainder is applied to the principal of your loan.
  2. Making an additional payment will allow you to pay your loan off faster, but it won't change the amount of your regular payments.

I want to pay my loan in full. How should I proceed?

You can pay your personal loan in full via National Bank online. Go to the personal loans section and click on the Repayment tab. Select "pay loan in full. "

Don't have a National Bank debit card? Call us at 1-888-483-5628 and request to repay your loan in full.Within 30 days of receiving the full payment, we will send you an account statement showing that the balance of your loan is at zero.

Can I defer a loan payment?

If you are unable to make a payment, you can request a deferral. Terms and conditions vary by loan type.

  • Fixed-rate loan: You can have up to two payments per year deferred to the end of your term.
  • Variable-rate loan: You can only defer one payment per term.

To submit a deferral request, send us an email via National Bank online so we can access your file and check your eligibility.

Don't have a National Bank debit card? Call us at 1-888-483-5628 so we can access your file.

Two key points:

  1. When you defer a payment, the interest portion is still debited as scheduled.
  2. To be eligible, your personal loan must be in good standing and you must have made regular payments for the past six months.

Can I change my loan payment terms and conditions?

Change payment date

You can change your personal loan payment dates. Your bank account will be debited within 48 hours of your request to reflect the corresponding interest adjustment. You can only change the payment date once per calendar year.

To request a change, call 1-888-483-5628 or send an email through National Bank online with the new payment date. Your interest will then be adjusted.

Change payment frequency

To change your payment frequency, you'll need to renegotiate your loan. The Bank will run a new credit check, and your borrowing terms and conditions may change.

To renegotiate your loan, make an appointment with a branch advisor.

How do I access the funds in my line of credit?

You can access the funds in your line of credit at your convenience. You can:

Where can I find the interest rate on my line of credit?

The interest rate on your line of credit appears on your monthly account statements, which can be accessed via National Bank online.

I can't afford to repay my government student loan. What should I do?

If you are a resident of Quebec, you can submit an application for a Deferred Payment Plan (DPP) to Aide financière aux études. This plan can grant you a payment deferral if your income does not allow you to repay your student loans.

Depending on your monthly income, you may be eligible for this program. Deferrals are granted by six‑month periods, and you can defer payments for up to 60 months over a 10 year period. During the deferral period, the government will cover your interest payments. To check your eligibility or submit an application, go to the Aide financière aux études website.

N.B.: DPP applications take 4-6 weeks to process. We will continue to collect payments until we receive a notice of approval from the government.

If you are not eligible for this program, email us via National Bank online or call us at 1-888-483-5628. We'll help you find a solution.

My loan payment is late. What should I do?

You can defer a personal loan payment. To submit a deferral request, send us an email via National Bank online. This will enable us to access your file and check your eligibility. Please note that you need to submit the request before the payment is due, otherwise you'll be required to pay it.

If you're experiencing financial problems, make an appointment with an advisor to discuss your situation and find solutions.

What is my loan balance?

You can check the balance of your loans and lines of credit via National Bank online.