Head to head · TD vs CIBC
TD 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
CIBC: 5.34% vs 5.39%. Your offer can differ, so ask both.
CIBC (10%, 15% or 20% by product vs 15% lump sum).
TD in our example: $13,365 vs $18,225 to break a new 5-year after 2 years if rates fall 1 point.
TD: 120 days (TD’s suggested start); CIBC doesn’t state a window on its pages.
TD: TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. 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
| TD Canada Trust | CIBC | |
|---|---|---|
| 5-yr special / posted | 5.39% / 6.14% | 5.34% / 6.49% |
| Prime used | TD Mortgage Prime 4.85% | CIBC Prime 4.70% |
| Prepayment | 15% lump sum a year and payment increases up to 100%, once per calendar year. | 10%, 15% or 20% a year depending on product; payment increases up to 100%. |
| 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. | 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 | Not stated on the TD pages we could read; ask TD. | May have a portability option (term, balance and maturity move to the new home). |
| HELOC | TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. | CIBC Home Power Plan: up to 80% of appraised value; line priced off CIBC Prime. |
| Early renewal | TD says start 120 days before maturity (renew online through EasyWeb or the app). | CIBC suggests starting 5 months before expiry; early-renewal window not stated. |
Posted and special rates by term
| Term | TD special | TD posted | CIBC special | CIBC posted |
|---|---|---|---|---|
| 1-year | — | 5.69% | 5.09% | 5.14% |
| 2-year | — | 5.39% | 4.84% | 5.24% |
| 3-year | 5.24% | 6.15% | 5.09% | 6.14% |
| 4-year | — | 5.99% | 5.24% | 6.19% |
| 5-year | 5.39% | 6.14% | 5.34% | 6.49% |
| 6-year | — | 6.29% | — | — |
| 7-year | — | 6.40% | 5.54% | 6.30% |
| 10-year | — | 6.80% | — | 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:
| TD | CIBC | |
|---|---|---|
| Starting rate (5-yr special) | 5.39% | 5.34% |
| Discount from posted | 0.75 pts | 1.15 pts |
| Compared with (3-yr posted less discount) | 5.40% | 4.99% |
| 3 months’ interest | $6,064 | $7,301 |
| Penalty, posted rates unchanged | $6,064 | $7,301 |
| Penalty, posted rates 1 point lower | $13,365 | $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 TD’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.
TD vs CIBC: questions
Is TD or CIBC better for a mortgage?
Neither wins on everything. On the terms each bank publishes: lower advertised 5-year fixed: CIBC: 5.34% vs 5.39%. Your offer can differ, so ask both. paying down faster: CIBC (10%, 15% or 20% by product vs 15% lump sum). might break early: TD in our example: $13,365 vs $18,225 to break a new 5-year after 2 years if rates fall 1 point. renewing early: TD: 120 days (TD’s suggested start); CIBC doesn’t state a window on its pages. re-borrowing equity: TD: TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. 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 TD and CIBC 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. 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 TD 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 — TD Canada Trust, checked Oct 31, 2026
- Mortgage rates across Canada — CIBC, checked Oct 31, 2026
- Mortgage prepayment calculator — TD Canada Trust, checked Oct 31, 2026
- Mortgage prepayment (privileges and prepayment charges) — CIBC, checked Oct 31, 2026
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