Head to head · BMO vs CIBC
BMO vs CIBC mortgages: rates, prepayment, penalties and HELOCs compared
Two of Canada’s big banks, compared on the terms that cost or save you money, from each bank’s own pages. No ranking, no paid placement: just which one fits which borrower.
Bank pages checked October 31, 2026
BMO: 5.14% vs 5.34%. Your offer can differ, so ask both.
Similar: BMO up to 20% (Smart Fixed 10%); CIBC 10%, 15% or 20% by product.
BMO in our example: $14,040 vs $18,225 to break a new 5-year after 2 years if rates fall 1 point (high end of a range where a formula isn’t fully published).
BMO: up to 180 days; CIBC doesn’t state a window on its pages.
BMO: Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%. CIBC: CIBC Home Power Plan: up to 80% of appraised value; line priced off CIBC Prime.
Pick on the clause you’re most likely to use: prepayment if you’ll pay down fast, the penalty rule and portability if you might move, the HELOC if you’ll re-borrow. Then ask the other bank to match.
Term sheets side by side
| BMO Bank of Montreal | CIBC | |
|---|---|---|
| 5-yr special / posted | 5.14% / 6.09% | 5.34% / 6.49% |
| Prime used | BMO Prime 4.70% | CIBC Prime 4.70% |
| Prepayment | Up to 20% payment increase or lump sum (product-dependent); Smart Fixed is 10% / 10%. | 10%, 15% or 20% a year depending on product; payment increases up to 100%. |
| Fixed-rate penalty | See BMO’s prepayment calculator and prepayment-options PDF (formula not on the pages we could read). | Greater of 3 months’ interest (at your rate + discount) or IRD vs CIBC’s current posted rate. Variable: 3 months’ interest at CIBC Prime. |
| Portability | Not stated on the BMO pages we could read; ask BMO. | May have a portability option (term, balance and maturity move to the new home). |
| HELOC | Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%. | CIBC Home Power Plan: up to 80% of appraised value; line priced off CIBC Prime. |
| Early renewal | Up to 180 days early, no penalty. | CIBC suggests starting 5 months before expiry; early-renewal window not stated. |
Posted and special rates by term
| Term | BMO special | BMO posted | CIBC special | CIBC posted |
|---|---|---|---|---|
| 1-year | — | 5.49% | 5.09% | 5.14% |
| 2-year | — | 4.94% | 4.84% | 5.24% |
| 3-year | 4.94% | 6.05% | 5.09% | 6.14% |
| 4-year | — | 5.99% | 5.24% | 6.19% |
| 5-year | 5.14% | 6.09% | 5.34% | 6.49% |
| 6-year | — | 6.29% | — | — |
| 7-year | — | 6.40% | 5.54% | 6.30% |
| 10-year | — | 6.80% | — | 6.79% |
Same mortgage, broken after two years
A new 5-year fixed for $450,000 at each bank’s own 5-year special, discounted from its own posted rate, broken after 24 months. People usually break when rates have fallen, which is when the IRD bites, so we show both cases:
| BMO | CIBC | |
|---|---|---|
| Starting rate (5-yr special) | 5.14% | 5.34% |
| Discount from posted | 0.95 pts | 1.15 pts |
| Compared with (3-yr posted less discount) | 5.10% | 4.99% |
| 3 months’ interest | $5,782 | $7,301 |
| Penalty, posted rates unchanged | $5,782 | $7,301 |
| Penalty, posted rates 1 point lower | $5,782–$14,040 | $18,225 |
Uses each bank’s published rule (see methodology); balance kept at $450,000 for a like-for-like comparison. “—” means the bank publishes no 5-year special rate to start from (Scotiabank shows specials only as APRs). Price your own mortgage in the penalty analyzer.
Bring BMO’s written offer to CIBC (or the other way round) and ask them to beat it on the same term. Then compare the penalty clause, because that’s where these two differ most.
BMO vs CIBC: questions
Is BMO or CIBC better for a mortgage?
Neither wins on everything. On the terms each bank publishes: lower advertised 5-year fixed: BMO: 5.14% vs 5.34%. Your offer can differ, so ask both. paying down faster: Similar: BMO up to 20% (Smart Fixed 10%); CIBC 10%, 15% or 20% by product. might break early: BMO in our example: $14,040 vs $18,225 to break a new 5-year after 2 years if rates fall 1 point (high end of a range where a formula isn’t fully published). renewing early: BMO: up to 180 days; CIBC doesn’t state a window on its pages. re-borrowing equity: BMO: Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%. CIBC: CIBC Home Power Plan: up to 80% of appraised value; line priced off CIBC Prime. Get a written quote from both, and from a broker, for the same term.
How do BMO and CIBC calculate prepayment penalties?
BMO: See BMO’s prepayment calculator and prepayment-options PDF (formula not on the pages we could read). CIBC: Greater of 3 months’ interest (at your rate + discount) or IRD vs CIBC’s current posted rate. Variable: 3 months’ interest at CIBC Prime.
Can I switch from BMO to CIBC at renewal?
Yes. At maturity there is no prepayment penalty, and since November 21, 2024 a straight switch with the same amount and amortization no longer needs a new stress test. The new bank may cover legal and appraisal costs; your current bank may charge a discharge fee. See the renewal checklist.
Sources
- Today’s mortgage rates — BMO, checked Oct 31, 2026
- Mortgage rates across Canada — CIBC, checked Oct 31, 2026
- Mortgage prepayment calculator — BMO, checked Oct 31, 2026
- Mortgage prepayment (privileges and prepayment charges) — CIBC, checked Oct 31, 2026
Keep exploring
Educational information only, not financial, legal or tax advice. BankMortgages.ca is independent and is not affiliated with, endorsed by or paid by any bank named on this site. Bank terms change: confirm every rate and term with the lender and the official sources linked on each page before you act. Read the full disclaimer.