Head to head · RBC vs Scotiabank
RBC vs Scotiabank 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
Only RBC publishes a 5-year special rate (5.14%).
Scotiabank (10%, 15% or 20% by option vs 10% lump sum).
Scotiabank publishes its specials only as APRs, so we can’t build a like-for-like example. Compare penalty wording: 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.” vs Scotiabank “Greater of 3 months’ interest or IRD vs Scotiabank’s posted rate for the closest term, less your discount. Variable: 3 months’ interest.”
Scotiabank gives more room: RBC up to 120 days; Scotiabank up to 6 months.
RBC: RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. Scotiabank: STEP: up to 80% (65% revolving); the 80% global limit steps down to 65% over 25 years.
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 | Scotiabank | |
|---|---|---|
| 5-yr special / posted | 5.14% / 6.19% | — / 6.19% |
| Prime used | RBC Prime 4.70% | Scotiabank Prime 4.70% |
| Prepayment | 10% lump sum a year, 10% payment increase every 12 months, plus Double-Up payments. | 10%, 15% or 20% of the original principal a year, depending on the options chosen. |
| 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 or IRD vs Scotiabank’s posted rate for the closest term, less your discount. Variable: 3 months’ interest. |
| Portability | Port when buying and selling at the same time; extra money can be blended at the current rate. | Listed as a way to avoid charges; not available on every mortgage solution. |
| HELOC | RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. | STEP: up to 80% (65% revolving); the 80% global limit steps down to 65% over 25 years. |
| Early renewal | Up to 120 days early, no penalty. | Up to 6 months early, no prepayment charge. |
Posted and special rates by term
| Term | RBC special | RBC posted | Scotiabank special | Scotiabank posted |
|---|---|---|---|---|
| 1-year | 5.14% | 5.74% | — | 5.49% |
| 2-year | 5.14% | 5.74% | — | 5.24% |
| 3-year | 5.09% | 6.25% | — | 6.05% |
| 4-year | 5.04% | 6.09% | — | 6.09% |
| 5-year | 5.14% | 6.19% | — | 6.19% |
| 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 | Scotiabank | |
|---|---|---|
| Starting rate (5-yr special) | 5.14% | — |
| Discount from posted | 1.05 pts | — |
| Compared with (3-yr posted less discount) | 5.20% | — |
| 3 months’ interest | $5,782 | — |
| Penalty, posted rates unchanged | $5,782 | — |
| Penalty, posted rates 1 point lower | $12,690 | — |
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 Scotiabank (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 Scotiabank: questions
Is RBC or Scotiabank better for a mortgage?
Neither wins on everything. On the terms each bank publishes: lower advertised 5-year fixed: Only RBC publishes a 5-year special rate (5.14%). paying down faster: Scotiabank (10%, 15% or 20% by option vs 10% lump sum). might break early: Scotiabank publishes its specials only as APRs, so we can’t build a like-for-like example. Compare penalty wording: 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.” vs Scotiabank “Greater of 3 months’ interest or IRD vs Scotiabank’s posted rate for the closest term, less your discount. Variable: 3 months’ interest.” renewing early: Scotiabank gives more room: RBC up to 120 days; Scotiabank up to 6 months. re-borrowing equity: RBC: RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. Scotiabank: STEP: up to 80% (65% revolving); the 80% global limit steps down to 65% over 25 years. Get a written quote from both, and from a broker, for the same term.
How do RBC and Scotiabank 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. Scotiabank: Greater of 3 months’ interest or IRD vs Scotiabank’s posted rate for the closest term, less your discount. Variable: 3 months’ interest.
Can I switch from RBC to Scotiabank 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 — Scotiabank, checked Oct 31, 2026
- Understanding mortgage prepayment charges — RBC Royal Bank, checked Oct 31, 2026
- What you need to know: mortgages and mortgage prepayment charges (PDF) — Scotiabank, 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.