Head to head · TD vs Scotiabank
TD 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 TD publishes a 5-year special rate (5.39%).
Scotiabank (10%, 15% or 20% by option vs 15% lump sum).
Scotiabank publishes its specials only as APRs, so we can’t build a like-for-like example. Compare penalty wording: TD “Higher of 3 months’ interest or IRD using TD’s posted rate for a similar mortgage minus your discount. 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: TD 120 days (TD’s suggested start); Scotiabank up to 6 months.
TD: TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. 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
| TD Canada Trust | Scotiabank | |
|---|---|---|
| 5-yr special / posted | 5.39% / 6.14% | — / 6.19% |
| Prime used | TD Mortgage Prime 4.85% | Scotiabank Prime 4.70% |
| Prepayment | 15% lump sum a year and payment increases up to 100%, once per calendar year. | 10%, 15% or 20% of the original principal a year, depending on the options chosen. |
| 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 or IRD vs Scotiabank’s posted rate for the closest term, less your discount. Variable: 3 months’ interest. |
| Portability | Not stated on the TD pages we could read; ask TD. | Listed as a way to avoid charges; not available on every mortgage solution. |
| HELOC | TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. | STEP: up to 80% (65% revolving); the 80% global limit steps down to 65% over 25 years. |
| Early renewal | TD says start 120 days before maturity (renew online through EasyWeb or the app). | Up to 6 months early, no prepayment charge. |
Posted and special rates by term
| Term | TD special | TD posted | Scotiabank special | Scotiabank posted |
|---|---|---|---|---|
| 1-year | — | 5.69% | — | 5.49% |
| 2-year | — | 5.39% | — | 5.24% |
| 3-year | 5.24% | 6.15% | — | 6.05% |
| 4-year | — | 5.99% | — | 6.09% |
| 5-year | 5.39% | 6.14% | — | 6.19% |
| 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:
| TD | Scotiabank | |
|---|---|---|
| Starting rate (5-yr special) | 5.39% | — |
| Discount from posted | 0.75 pts | — |
| Compared with (3-yr posted less discount) | 5.40% | — |
| 3 months’ interest | $6,064 | — |
| Penalty, posted rates unchanged | $6,064 | — |
| Penalty, posted rates 1 point lower | $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 TD’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.
TD vs Scotiabank: questions
Is TD or Scotiabank better for a mortgage?
Neither wins on everything. On the terms each bank publishes: lower advertised 5-year fixed: Only TD publishes a 5-year special rate (5.39%). paying down faster: Scotiabank (10%, 15% or 20% by option vs 15% 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: TD “Higher of 3 months’ interest or IRD using TD’s posted rate for a similar mortgage minus your discount. 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: TD 120 days (TD’s suggested start); Scotiabank up to 6 months. re-borrowing equity: TD: TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. 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 TD and Scotiabank 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. 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 TD 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 — TD Canada Trust, checked Oct 31, 2026
- Mortgage rates — Scotiabank, checked Oct 31, 2026
- Mortgage prepayment calculator — TD Canada Trust, checked Oct 31, 2026
- What you need to know: mortgages and mortgage prepayment charges (PDF) — Scotiabank, checked Oct 31, 2026
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