Head to head · RBC vs BMO
RBC vs BMO 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
Tie at 5.14%.
BMO (up to 20% (Smart Fixed 10%) vs 10% lump sum).
RBC in our example: $12,690 vs $14,040 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 gives more room: RBC up to 120 days; BMO up to 180 days.
RBC: RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. BMO: Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%.
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
| RBC Royal Bank | BMO Bank of Montreal | |
|---|---|---|
| 5-yr special / posted | 5.14% / 6.19% | 5.14% / 6.09% |
| Prime used | RBC Prime 4.70% | BMO Prime 4.70% |
| Prepayment | 10% lump sum a year, 10% payment increase every 12 months, plus Double-Up payments. | Up to 20% payment increase or lump sum (product-dependent); Smart Fixed is 10% / 10%. |
| Fixed-rate penalty | Greater of 3 months’ interest or IRD vs RBC’s posted rate for a similar term, less your rate reduction. Variable: 3 months’ interest. | See BMO’s prepayment calculator and prepayment-options PDF (formula not on the pages we could read). |
| Portability | Port when buying and selling at the same time; extra money can be blended at the current rate. | Not stated on the BMO pages we could read; ask BMO. |
| HELOC | RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. | Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%. |
| Early renewal | Up to 120 days early, no penalty. | Up to 180 days early, no penalty. |
Posted and special rates by term
| Term | RBC special | RBC posted | BMO special | BMO posted |
|---|---|---|---|---|
| 1-year | 5.14% | 5.74% | — | 5.49% |
| 2-year | 5.14% | 5.74% | — | 4.94% |
| 3-year | 5.09% | 6.25% | 4.94% | 6.05% |
| 4-year | 5.04% | 6.09% | — | 5.99% |
| 5-year | 5.14% | 6.19% | 5.14% | 6.09% |
| 6-year | — | — | — | 6.29% |
| 7-year | 5.25% | 6.50% | — | 6.40% |
| 10-year | — | 6.90% | — | 6.80% |
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:
| RBC | BMO | |
|---|---|---|
| Starting rate (5-yr special) | 5.14% | 5.14% |
| Discount from posted | 1.05 pts | 0.95 pts |
| Compared with (3-yr posted less discount) | 5.20% | 5.10% |
| 3 months’ interest | $5,782 | $5,782 |
| Penalty, posted rates unchanged | $5,782 | $5,782 |
| Penalty, posted rates 1 point lower | $12,690 | $5,782–$14,040 |
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 RBC’s written offer to BMO (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.
RBC vs BMO: questions
Is RBC or BMO better for a mortgage?
Neither wins on everything. On the terms each bank publishes: lower advertised 5-year fixed: Tie at 5.14%. paying down faster: BMO (up to 20% (Smart Fixed 10%) vs 10% lump sum). might break early: RBC in our example: $12,690 vs $14,040 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 gives more room: RBC up to 120 days; BMO up to 180 days. re-borrowing equity: RBC: RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. BMO: Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%. Get a written quote from both, and from a broker, for the same term.
How do RBC and BMO calculate prepayment penalties?
RBC: Greater of 3 months’ interest or IRD vs RBC’s posted rate for a similar term, less your rate reduction. Variable: 3 months’ interest. BMO: See BMO’s prepayment calculator and prepayment-options PDF (formula not on the pages we could read).
Can I switch from RBC to BMO 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
- Mortgage rates — RBC Royal Bank, checked Oct 31, 2026
- Today’s mortgage rates — BMO, checked Oct 31, 2026
- Understanding mortgage prepayment charges — RBC Royal Bank, checked Oct 31, 2026
- Mortgage prepayment calculator — BMO, checked Oct 31, 2026
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