National Bank: Strategy-5 Mortgage, The Best of Both Worlds.

MONTREAL -- National Bank has launched the Strategy-5, a new 5-year mortgage with one of the best interest rates on the market, thanks to a reduction of 1.50% for the first year and 0.30% for the following 4 years.

Buying a home with peace of mind and without neglecting other aspects of one's life is no small feat. The Strategy-5 Mortgage provides the optimum solution with its 5-year term and an attractive variable rate that is adjusted every year.

This economical solution offers homeowners the best of both worlds: a fixed rate combined with a variable rate. The Strategy-5 Mortgage enables clients to manage their budget effectively and, because of the significant rate discount during the fist year, allows them to repay their principal more quickly than with a fixed-rate mortgage. The rate discounts also free up funds to pay for the additional expenses related to buying a home.

The Strategy-5 Mortgage has a maximum amortization period of 25 years and payments are calculated using the current rate for a 1-year term minus 1.50% for the first year and minus 0.30% for the following 4 years. The payment amount is adjusted annually using the interest rate in effect on the review date.

Here is an example of the advantages of a Strategy-5 Mortgage for a
$150,000 loan:
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                           5-Year Mortgage   Strategy-5 Mortgage
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Interest rate for
 the 1st year(i)                      6.45%                 4.55%
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Interest rate for
 the following 4 years                6.45%                 5.75%(ii)
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Monthly payment                  $1,000.20               $834.38
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Principal repaid
 after 5 years                  $14,407.91            $16,200.76
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   (i)  Rate on March 29, 2006
   (ii) Assuming the interest rate remains the same for the entire
        term (1-year rate:  6.05%)

5-year fixed-rate APR:6.45%

APR means "Annual Percentage Rate" and represents the total interest and fees charged by the Bank, expressed as an annual percentage. The example is based on a $150,000 loan with a 25-year amortization and a fixed rate of 6.45% for a five-year closed term, with no monthly fees.

Strategy-5 Mortgage APR: 5.44%

APR means "Annual Percentage Rate" and represents the total interest and fees charged by the Bank, expressed as an annual percentage. The example is based on a $150,000 loan with a 25-year amortization and a rate of 4.55% in the first year and 5.75% for the remaining years, with no monthly fees and assuming the rate does not change.

About National Bank of Canada

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 clients elsewhere in the world. National Bank offers a full array of banking services, including retail, 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 more than $105 billion in assets and, together with its subsidiaries, employs 16,993 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 provided below is for the exclusive use of journalists and other media representatives):

National Bank of Canada (TSX:NA)