Head to head · RBC vs TD
RBC vs TD 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 5.39%. Your offer can differ, so ask both.
TD (15% lump sum vs 10% lump sum).
RBC in our example: $12,690 vs $13,365 to break a new 5-year after 2 years if rates fall 1 point.
Similar: RBC up to 120 days; TD 120 days (TD’s suggested start).
RBC: RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. TD: TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD 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 | TD Canada Trust | |
|---|---|---|
| 5-yr special / posted | 5.14% / 6.19% | 5.39% / 6.14% |
| Prime used | RBC Prime 4.70% | TD Mortgage Prime 4.85% |
| Prepayment | 10% lump sum a year, 10% payment increase every 12 months, plus Double-Up payments. | 15% lump sum a year and payment increases up to 100%, once per calendar year. |
| 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. | Higher of 3 months’ interest or IRD using TD’s posted rate for a similar mortgage minus 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. | Not stated on the TD pages we could read; ask TD. |
| HELOC | RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. | TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. |
| Early renewal | Up to 120 days early, no penalty. | TD says start 120 days before maturity (renew online through EasyWeb or the app). |
Posted and special rates by term
| Term | RBC special | RBC posted | TD special | TD posted |
|---|---|---|---|---|
| 1-year | 5.14% | 5.74% | — | 5.69% |
| 2-year | 5.14% | 5.74% | — | 5.39% |
| 3-year | 5.09% | 6.25% | 5.24% | 6.15% |
| 4-year | 5.04% | 6.09% | — | 5.99% |
| 5-year | 5.14% | 6.19% | 5.39% | 6.14% |
| 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 | TD | |
|---|---|---|
| Starting rate (5-yr special) | 5.14% | 5.39% |
| Discount from posted | 1.05 pts | 0.75 pts |
| Compared with (3-yr posted less discount) | 5.20% | 5.40% |
| 3 months’ interest | $5,782 | $6,064 |
| Penalty, posted rates unchanged | $5,782 | $6,064 |
| Penalty, posted rates 1 point lower | $12,690 | $13,365 |
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 TD (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 TD: questions
Is RBC or TD better for a mortgage?
Neither wins on everything. On the terms each bank publishes: lower advertised 5-year fixed: RBC: 5.14% vs 5.39%. Your offer can differ, so ask both. paying down faster: TD (15% lump sum vs 10% lump sum). might break early: RBC in our example: $12,690 vs $13,365 to break a new 5-year after 2 years if rates fall 1 point. renewing early: Similar: RBC up to 120 days; TD 120 days (TD’s suggested start). re-borrowing equity: RBC: RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. TD: TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. Get a written quote from both, and from a broker, for the same term.
How do RBC and TD 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. TD: Higher of 3 months’ interest or IRD using TD’s posted rate for a similar mortgage minus your discount. Variable: 3 months’ interest.
Can I switch from RBC to TD 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 — TD Canada Trust, checked Oct 31, 2026
- Understanding mortgage prepayment charges — RBC Royal Bank, checked Oct 31, 2026
- Mortgage prepayment calculator — TD Canada Trust, checked Oct 31, 2026
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