Head to head · TD vs BMO
TD 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
BMO: 5.14% vs 5.39%. Your offer can differ, so ask both.
BMO (up to 20% (Smart Fixed 10%) vs 15% lump sum).
TD in our example: $13,365 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: TD 120 days (TD’s suggested start); BMO up to 180 days.
TD: TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. 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
| TD Canada Trust | BMO Bank of Montreal | |
|---|---|---|
| 5-yr special / posted | 5.39% / 6.14% | 5.14% / 6.09% |
| Prime used | TD Mortgage Prime 4.85% | BMO Prime 4.70% |
| Prepayment | 15% lump sum a year and payment increases up to 100%, once per calendar year. | Up to 20% payment increase or lump sum (product-dependent); Smart Fixed is 10% / 10%. |
| Fixed-rate penalty | Higher of 3 months’ interest or IRD using TD’s posted rate for a similar mortgage minus your discount. Variable: 3 months’ interest. | See BMO’s prepayment calculator and prepayment-options PDF (formula not on the pages we could read). |
| Portability | Not stated on the TD pages we could read; ask TD. | Not stated on the BMO pages we could read; ask BMO. |
| HELOC | TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. | Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%. |
| Early renewal | TD says start 120 days before maturity (renew online through EasyWeb or the app). | Up to 180 days early, no penalty. |
Posted and special rates by term
| Term | TD special | TD posted | BMO special | BMO posted |
|---|---|---|---|---|
| 1-year | — | 5.69% | — | 5.49% |
| 2-year | — | 5.39% | — | 4.94% |
| 3-year | 5.24% | 6.15% | 4.94% | 6.05% |
| 4-year | — | 5.99% | — | 5.99% |
| 5-year | 5.39% | 6.14% | 5.14% | 6.09% |
| 6-year | — | 6.29% | — | 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:
| TD | BMO | |
|---|---|---|
| Starting rate (5-yr special) | 5.39% | 5.14% |
| Discount from posted | 0.75 pts | 0.95 pts |
| Compared with (3-yr posted less discount) | 5.40% | 5.10% |
| 3 months’ interest | $6,064 | $5,782 |
| Penalty, posted rates unchanged | $6,064 | $5,782 |
| Penalty, posted rates 1 point lower | $13,365 | $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 TD’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.
TD vs BMO: questions
Is TD or BMO better for a mortgage?
Neither wins on everything. On the terms each bank publishes: lower advertised 5-year fixed: BMO: 5.14% vs 5.39%. Your offer can differ, so ask both. paying down faster: BMO (up to 20% (Smart Fixed 10%) vs 15% lump sum). might break early: TD in our example: $13,365 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: TD 120 days (TD’s suggested start); BMO up to 180 days. re-borrowing equity: TD: TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. 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 TD and BMO calculate prepayment penalties?
TD: Higher of 3 months’ interest or IRD using TD’s posted rate for a similar mortgage minus 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 TD 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 — TD Canada Trust, checked Oct 31, 2026
- Today’s mortgage rates — BMO, checked Oct 31, 2026
- Mortgage prepayment calculator — TD Canada Trust, checked Oct 31, 2026
- Mortgage prepayment calculator — BMO, checked Oct 31, 2026
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