Head to head · BMO vs CIBC
BMO vs CIBC mortgages: rates, prepayment, penalties and HELOCs compared
Short answer: BMO advertises the lower 5-year fixed (5.14% vs 5.34%) as of November 2, 2026. On the same $480,000 mortgage broken 30 months early after rates fall a point, BMO charges about $9,720 less. Annual lump-sum room is similar. Neither wins everything, so get both quotes.
BMO and CIBC compared on the terms that cost or save you money, from each bank’s own pages: which of the two fits which borrower. No ranking, no paid placement.
Bank pages checked November 2, 2026
BMO: 5.14% vs 5.34%. Your offer can differ, so ask both.
Similar: BMO 20% lump sum (Smart Fixed 10%); CIBC 10%, 15% or 20% by product.
BMO in our example: $12,690 vs $18,225 to break a new 5-year after 2 years if rates fall 1 point.
BMO: up to 180 days; CIBC doesn’t state a window on its pages.
BMO Homeowner ReadiLine vs CIBC Home Power Plan: the limits and structure are in the HELOC row of the term sheet below.
Both offer 20% privileges on some products; the penalty arithmetic is where they split. Then take BMO’s written offer to CIBC, or the other way round, and ask them to match it on the same term.
Term sheets side by side
| BMO Bank of Montreal | CIBC | |
|---|---|---|
| 5-yr special / posted | 5.14% / 6.09% | 5.34% / 6.49% |
| Prime used | BMO Prime 4.70% | CIBC Prime 4.70% |
| Prepayment | 20% lump sum and 20% payment increase a year on closed mortgages; Smart Fixed 10% / 10%. | 10%, 15% or 20% a year depending on product; payment increases up to 100%. |
| Fixed-rate penalty | Higher of 3 months’ interest or IRD vs BMO’s posted rate for the closest term, taking your discount into account. 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 | Port a fixed closed mortgage; extra money blended at the current fixed posted rate. | All CIBC mortgages except Variable Flex can be ported; the charge may be waived or reimbursed in full or in part, and a delayed port allows up to 120 days. |
| HELOC | Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%. | CIBC Home Power Plan: up to 80% of appraised value; line priced off CIBC Prime. |
| Early renewal | Up to 180 days early, no penalty. | CIBC suggests starting 5 months before expiry; early-renewal window not stated. |
Posted and special rates by term
| Term | BMO special | BMO posted | CIBC special | CIBC posted |
|---|---|---|---|---|
| 1-year | — | 5.49% | 5.09% | 5.14% |
| 2-year | — | 4.94% | 4.84% | 5.24% |
| 3-year | 4.94% | 6.05% | 5.09% | 6.14% |
| 4-year | — | 5.99% | 5.24% | 6.19% |
| 5-year | 5.14% | 6.09% | 5.34% | 6.49% |
| 6-year | — | 6.29% | — | — |
| 7-year | — | 6.40% | 5.54% | 6.30% |
| 10-year | — | 6.80% | — | 6.79% |
Worked example: the same mortgage at BMO and at CIBC
You owe $480,000 on a $500,000 5-year fixed at 5.29%, signed when the posted 5-year rate was 6.89% (a 1.60-point discount). There are 30 months left and you need to sell without porting. The payment, about $3,064.75 a month, is the same at either bank; what differs is the exit.
| BMO | CIBC | |
|---|---|---|
| Compares with | 3-yr posted | 2-yr posted |
| Comparison rate after discount | 4.45% | 3.64% |
| 3 months’ interest | $6,348 | $8,268 |
| Penalty if you break now | $10,080 | $19,800 |
| Penalty if posted rates fall 1 point first | $22,080 | $31,800 |
| Most lump-sum room stated, on the original amount | $100,000 | $100,000 |
| Penalty after using this year’s lump sum first | $7,980 | $15,675 |
| Porting | Port a fixed closed mortgage; extra money blended at the current fixed posted rate. | All CIBC mortgages except Variable Flex can be ported; the charge may be waived or reimbursed in full or in part, and a delayed port allows up to 120 days. |
Where BMO and CIBC differ most
- Breaking the same mortgage after rates fall a point costs $9,720 more at CIBC ($31,800 vs $22,080): BMO compares with its 3-yr posted rate and CIBC with its 2-yr posted rate.
- Which bank is cheaper to leave depends on when you leave: across the term the lead changes hands. The gap is widest with 30 months left: $9,956 at BMO (3-yr posted) vs $19,555 at CIBC (2-yr posted).
Both offer 20% privileges on some products; the penalty arithmetic is where they split.
BMO’s regular closed mortgage allows 20% / 20%; CIBC’s privilege is 10%, 15% or 20% by product, with payment increases up to 100%. BMO picks the closest posted term and, on a tie, the higher rate; CIBC follows a months-left chart and charges 3 months’ interest at your rate plus your discount. BMO lets you renew up to 180 days early; CIBC doesn’t state a window.
Ask: Ask BMO whether you’re quoted Smart Fixed (10% / 10%) and CIBC which privilege level comes with your product.
When would breaking cost less at BMO or at CIBC?
The same $500,000 mortgage, broken at five points in its 5-year term (balance paid down on schedule, today’s posted tables). Each bank’s comparison term changes at different months, so the gap opens and closes:
| Months left | BMO penalty | CIBC penalty | BMO compares with | CIBC compares with |
|---|---|---|---|---|
| 54 | $17,823 | $15,595 | 5-yr posted | 4-yr posted |
| 42 | $14,255 | $12,727 | 3-yr posted | 3-yr posted |
| 30 | $9,956 | $19,555 | 3-yr posted | 2-yr posted |
| 18 | $9,717 | $12,146 | 1-yr posted | 1-yr posted |
| 6 | $5,961 | $7,764 | 1-yr posted | 1-yr posted (CIBC uses its 6-month rate; 1-year shown) |
Who feels the difference between BMO and CIBC?
The mover who can’t port: BMO or CIBC, month by month
Selling with 54 months left would cost $17,823 at BMO and $15,595 at CIBC, so CIBC is the cheaper exit early in the term; with 6 months left it’s $5,961 against $7,764, and BMO is cheaper. Waiting from 54 to 6 months left saves $11,862 at BMO and $7,831 at CIBC. If you might sell mid-term, porting beats both: see the porting row in the term sheet above and ask each bank for its window in writing.
BMO penalty calculator · CIBC penalty calculator · prices your own numbers.
A brand-new mortgage at each bank, 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:
| BMO | CIBC | |
|---|---|---|
| Starting rate (5-yr special) | 5.14% | 5.34% |
| Discount from posted | 0.85 pts | 1.15 pts |
| Comparison rate after discount | 5.20% | 4.99% |
| 3 months’ interest | $5,782 | $7,301 |
| Penalty, posted rates unchanged | $5,782 | $7,301 |
| Penalty, posted rates 1 point lower | $12,690 | $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 fixed special to start from (Scotiabank posts none; its specials are variable). Price your own mortgage in the penalty analyzer.
Bring BMO’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.
BMO vs CIBC: questions
Is BMO or CIBC better for a mortgage?
Neither wins on everything. Both offer 20% privileges on some products; the penalty arithmetic is where they split. BMO advertises the lower 5-year fixed (5.14% vs 5.34%) as of November 2, 2026. On the same $480,000 mortgage broken 30 months early after rates fall a point, BMO charges about $9,720 less. Annual lump-sum room is similar. Neither wins everything, so get both quotes.
How do BMO and CIBC calculate prepayment penalties?
Both charge the greater of 3 months’ interest or an IRD on a closed fixed mortgage, and 3 months’ interest on a variable. On the same mortgage with 30 months left, BMO compares with its 3-yr posted rate and CIBC with its 2-yr posted rate, giving $10,080 at BMO and $19,800 at CIBC. Each bank’s wording is on its profile: BMO, CIBC.
Is it cheaper to break a mortgage at BMO or CIBC?
It depends on when. For the same $500,000 5-year fixed at 5.29% (posted 6.89% at signing), with 54 months left BMO $17,823 vs CIBC $15,595; with 42 months left BMO $14,255 vs CIBC $12,727; with 30 months left BMO $9,956 vs CIBC $19,555; with 18 months left BMO $9,717 vs CIBC $12,146; with 6 months left BMO $5,961 vs CIBC $7,764. Your own figure depends on your rate, discount and balance: try the penalty analyzer.
Can I switch from BMO 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
- Today’s mortgage rates — BMO, checked Nov 2, 2026
- Mortgage rates across Canada — CIBC, checked Nov 2, 2026
- Paying off your mortgage faster (prepayment privileges, prepayment charges, portability) — BMO, checked Nov 2, 2026
- Mortgage prepayment (privileges and prepayment charges) — CIBC, checked Oct 31, 2026
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