Head to head · RBC vs CIBC
RBC 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
RBC: 5.14% vs 5.34%. Your offer can differ, so ask both.
CIBC (10%, 15% or 20% by product vs 10% lump sum).
RBC in our example: $12,690 vs $18,225 to break a new 5-year after 2 years if rates fall 1 point.
RBC: up to 120 days; CIBC doesn’t state a window on its pages.
RBC: RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. 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
| RBC Royal Bank | CIBC | |
|---|---|---|
| 5-yr special / posted | 5.14% / 6.19% | 5.34% / 6.49% |
| Prime used | RBC Prime 4.70% | CIBC Prime 4.70% |
| Prepayment | 10% lump sum a year, 10% payment increase every 12 months, plus Double-Up payments. | 10%, 15% or 20% a year depending on product; payment increases up to 100%. |
| 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. | 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 | Port when buying and selling at the same time; extra money can be blended at the current rate. | May have a portability option (term, balance and maturity move to the new home). |
| HELOC | RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. | CIBC Home Power Plan: up to 80% of appraised value; line priced off CIBC Prime. |
| Early renewal | Up to 120 days early, no penalty. | CIBC suggests starting 5 months before expiry; early-renewal window not stated. |
Posted and special rates by term
| Term | RBC special | RBC posted | CIBC special | CIBC posted |
|---|---|---|---|---|
| 1-year | 5.14% | 5.74% | 5.09% | 5.14% |
| 2-year | 5.14% | 5.74% | 4.84% | 5.24% |
| 3-year | 5.09% | 6.25% | 5.09% | 6.14% |
| 4-year | 5.04% | 6.09% | 5.24% | 6.19% |
| 5-year | 5.14% | 6.19% | 5.34% | 6.49% |
| 7-year | 5.25% | 6.50% | 5.54% | 6.30% |
| 10-year | — | 6.90% | — | 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:
| RBC | CIBC | |
|---|---|---|
| Starting rate (5-yr special) | 5.14% | 5.34% |
| Discount from posted | 1.05 pts | 1.15 pts |
| Compared with (3-yr posted less discount) | 5.20% | 4.99% |
| 3 months’ interest | $5,782 | $7,301 |
| Penalty, posted rates unchanged | $5,782 | $7,301 |
| Penalty, posted rates 1 point lower | $12,690 | $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 RBC’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.
RBC vs CIBC: questions
Is RBC or CIBC better for a mortgage?
Neither wins on everything. On the terms each bank publishes: lower advertised 5-year fixed: RBC: 5.14% vs 5.34%. Your offer can differ, so ask both. paying down faster: CIBC (10%, 15% or 20% by product vs 10% lump sum). might break early: RBC in our example: $12,690 vs $18,225 to break a new 5-year after 2 years if rates fall 1 point. renewing early: RBC: up to 120 days; CIBC doesn’t state a window on its pages. re-borrowing equity: RBC: RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. 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 RBC and CIBC 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. 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 RBC 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
- Mortgage rates — RBC Royal Bank, checked Oct 31, 2026
- Mortgage rates across Canada — CIBC, checked Oct 31, 2026
- Understanding mortgage prepayment charges — RBC Royal Bank, checked Oct 31, 2026
- Mortgage prepayment (privileges and prepayment charges) — CIBC, checked Oct 31, 2026
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