Head to head · Scotiabank vs BMO
Scotiabank 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
Only BMO publishes a 5-year special rate (5.14%).
Similar: Scotiabank 10%, 15% or 20% by option; BMO up to 20% (Smart Fixed 10%).
Scotiabank publishes its specials only as APRs, so we can’t build a like-for-like example. Compare penalty wording: Scotiabank “Greater of 3 months’ interest or IRD vs Scotiabank’s posted rate for the closest term, less your discount. Variable: 3 months’ interest.” vs BMO “See BMO’s prepayment calculator and prepayment-options PDF (formula not on the pages we could read).”
Similar: Scotiabank up to 6 months; BMO up to 180 days.
Scotiabank: STEP: up to 80% (65% revolving); the 80% global limit steps down to 65% over 25 years. 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
| Scotiabank | BMO Bank of Montreal | |
|---|---|---|
| 5-yr special / posted | — / 6.19% | 5.14% / 6.09% |
| Prime used | Scotiabank Prime 4.70% | BMO Prime 4.70% |
| Prepayment | 10%, 15% or 20% of the original principal a year, depending on the options chosen. | 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 Scotiabank’s posted rate for the closest term, less your discount. Variable: 3 months’ interest. | See BMO’s prepayment calculator and prepayment-options PDF (formula not on the pages we could read). |
| Portability | Listed as a way to avoid charges; not available on every mortgage solution. | Not stated on the BMO pages we could read; ask BMO. |
| HELOC | STEP: up to 80% (65% revolving); the 80% global limit steps down to 65% over 25 years. | Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%. |
| Early renewal | Up to 6 months early, no prepayment charge. | Up to 180 days early, no penalty. |
Posted and special rates by term
| Term | Scotiabank special | Scotiabank posted | BMO special | BMO posted |
|---|---|---|---|---|
| 1-year | — | 5.49% | — | 5.49% |
| 2-year | — | 5.24% | — | 4.94% |
| 3-year | — | 6.05% | 4.94% | 6.05% |
| 4-year | — | 6.09% | — | 5.99% |
| 5-year | — | 6.19% | 5.14% | 6.09% |
| 6-year | — | — | — | 6.29% |
| 7-year | — | 6.40% | — | 6.40% |
| 10-year | — | 6.80% | — | 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:
| Scotiabank | BMO | |
|---|---|---|
| Starting rate (5-yr special) | — | 5.14% |
| Discount from posted | — | 0.95 pts |
| Compared with (3-yr posted less discount) | — | 5.10% |
| 3 months’ interest | — | $5,782 |
| Penalty, posted rates unchanged | — | $5,782 |
| Penalty, posted rates 1 point lower | — | $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 Scotiabank’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.
Scotiabank vs BMO: questions
Is Scotiabank or BMO better for a mortgage?
Neither wins on everything. On the terms each bank publishes: lower advertised 5-year fixed: Only BMO publishes a 5-year special rate (5.14%). paying down faster: Similar: Scotiabank 10%, 15% or 20% by option; BMO up to 20% (Smart Fixed 10%). might break early: Scotiabank publishes its specials only as APRs, so we can’t build a like-for-like example. Compare penalty wording: Scotiabank “Greater of 3 months’ interest or IRD vs Scotiabank’s posted rate for the closest term, less your discount. Variable: 3 months’ interest.” vs BMO “See BMO’s prepayment calculator and prepayment-options PDF (formula not on the pages we could read).” renewing early: Similar: Scotiabank up to 6 months; BMO up to 180 days. re-borrowing equity: Scotiabank: STEP: up to 80% (65% revolving); the 80% global limit steps down to 65% over 25 years. 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 Scotiabank and BMO calculate prepayment penalties?
Scotiabank: Greater of 3 months’ interest or IRD vs Scotiabank’s posted rate for the closest term, less your discount. 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 Scotiabank 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 — Scotiabank, checked Oct 31, 2026
- Today’s mortgage rates — BMO, checked Oct 31, 2026
- What you need to know: mortgages and mortgage prepayment charges (PDF) — Scotiabank, checked Oct 31, 2026
- Mortgage prepayment calculator — BMO, checked Oct 31, 2026
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