Head to head · RBC vs BMO
RBC vs BMO mortgages: rates, prepayment, penalties and HELOCs compared
Short answer: Both advertise 5.14% for a 5-year fixed as of November 2, 2026. On the same $480,000 mortgage broken 30 months early after rates fall a point, RBC charges about $2,400 less. BMO gives more lump-sum room (20% vs 10%). Neither wins everything, so get both quotes.
RBC and BMO 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
Tie at 5.14%.
BMO (20% lump sum (Smart Fixed 10%) vs 10% lump sum).
About the same in our example ($12,690).
BMO gives more room: RBC up to 120 days; BMO up to 180 days.
RBC Homeline Plan vs BMO Homeowner ReadiLine: the limits and structure are in the HELOC row of the term sheet below.
BMO’s regular closed mortgage suits someone who will prepay hard; check whether you’re being offered Smart Fixed. Then take RBC’s written offer to BMO, or the other way round, and ask them to match it on the same term.
Term sheets side by side
| RBC Royal Bank | BMO Bank of Montreal | |
|---|---|---|
| 5-yr special / posted | 5.14% / 6.19% | 5.14% / 6.09% |
| Prime used | RBC Prime 4.70% | BMO Prime 4.70% |
| Prepayment | 10% lump sum a year, 10% payment increase every 12 months, plus Double-Up payments. | 20% lump sum and 20% payment increase a year on closed mortgages; Smart Fixed 10% / 10%. |
| Fixed-rate penalty | Greater of 3 months’ interest or IRD vs RBC’s posted rate for a similar term, less your rate reduction. Variable: 3 months’ interest. | 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. |
| Portability | Port when buying and selling at the same time; extra money can be blended at the current rate. | Port a fixed closed mortgage; extra money blended at the current fixed posted rate. |
| HELOC | RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. | Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%. |
| Early renewal | Up to 120 days early, no penalty. | Up to 180 days early, no penalty. |
Posted and special rates by term
| Term | RBC special | RBC posted | BMO special | BMO posted |
|---|---|---|---|---|
| 1-year | 5.14% | 5.74% | — | 5.49% |
| 2-year | 5.14% | 5.74% | — | 4.94% |
| 3-year | 5.09% | 6.25% | 4.94% | 6.05% |
| 4-year | 5.14% | 6.09% | — | 5.99% |
| 5-year | 5.14% | 6.19% | 5.14% | 6.09% |
| 6-year | — | — | — | 6.29% |
| 7-year | 5.25% | 6.50% | — | 6.40% |
| 10-year | — | 6.90% | — | 6.80% |
Worked example: the same mortgage at RBC and at BMO
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.
| RBC | BMO | |
|---|---|---|
| Compares with | 3-yr posted | 3-yr posted |
| Comparison rate after discount | 4.65% | 4.45% |
| 3 months’ interest | $6,348 | $6,348 |
| Penalty if you break now | $7,680 | $10,080 |
| Penalty if posted rates fall 1 point first | $19,680 | $22,080 |
| Most lump-sum room stated, on the original amount | $50,000 | $100,000 |
| Penalty after using this year’s lump sum first | $6,880 | $7,980 |
| Porting | Port when buying and selling at the same time; extra money can be blended at the current rate. | Port a fixed closed mortgage; extra money blended at the current fixed posted rate. |
Where RBC and BMO differ most
- Prepayment room differs by $50,000 a year on a $500,000 mortgage (RBC 10% lump sum, BMO 20% lump sum (Smart Fixed 10%)).
- Breaking the same mortgage after rates fall a point costs $2,400 more at BMO ($22,080 vs $19,680): both compare with their 3-yr posted rate, but RBC’s is higher (RBC 6.25% vs BMO 6.05% today), and a higher comparison rate means a smaller differential.
- The gap is widest with 30 months left: $7,585 at RBC (3-yr posted) vs $9,956 at BMO (3-yr posted).
BMO’s regular closed mortgage suits someone who will prepay hard; check whether you’re being offered Smart Fixed.
BMO and RBC both compare with a posted rate for the closest term, but BMO breaks a tie toward the higher of the two posted rates, while RBC and Scotiabank round up to the longer term. That matters at exactly 18, 30 or 42 months left. BMO’s regular closed mortgages allow 20% a year in lump sums and payment increases, double RBC’s 10%, but BMO’s Smart Fixed trades that down to 10% / 10% for a lower rate, so the comparison depends on which BMO product you’re quoted.
Ask: Ask BMO whether the rate you’re quoted is Smart Fixed, and ask RBC for its posted rate at signing so you know your discount.
When would breaking cost less at RBC or at BMO?
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 | RBC penalty | BMO penalty | RBC compares with | BMO compares with |
|---|---|---|---|---|
| 54 | $15,595 | $17,823 | 5-yr posted | 5-yr posted |
| 42 | $13,576 | $14,255 | 4-yr posted | 3-yr posted |
| 30 | $7,585 | $9,956 | 3-yr posted | 3-yr posted |
| 18 | $7,982 | $9,717 | 2-yr posted | 1-yr posted |
| 6 | $5,961 | $5,961 | 1-yr posted | 1-yr posted |
Who feels the difference between RBC and BMO?
The aggressive pre-payer: $100,000 a year at BMO vs $50,000 at RBC
Take a $500,000 5-year fixed at 5.29% at either bank and put the largest lump sum each bank states into it at every anniversary. At BMO (20% lump sum (Smart Fixed 10%)) you’d have paid it off before renewal, paying $67,523 in interest over the five years; at RBC (10% lump sum) you’d owe $166,253 at renewal, paying $95,720. Without lump sums you’d owe $444,528. Kept up, BMO’s room would clear the mortgage in about 4.8 years against 7.3 at RBC. Most people won’t prepay this hard; if you will, this is the clause to choose on.
The early renewer: how soon you can lock in
With a 2027-06-30 maturity, RBC would let you renew from about 2027-03-02 (up to 120 days) and BMO from about 2027-01-01 (up to 180 days). If rates are rising, the earlier window is worth having; if they’re falling, you can wait at either. Neither bank charges a penalty for renewing inside its window.
The mover who can’t port: RBC or BMO, month by month
Selling with 54 months left would cost $15,595 at RBC and $17,823 at BMO, so RBC is the cheaper exit early in the term; with 6 months left it’s $5,961 against $5,961, and neither bank is cheaper. Waiting from 54 to 6 months left saves $9,634 at RBC and $11,862 at BMO. 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.
RBC penalty calculator · BMO 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:
| RBC | BMO | |
|---|---|---|
| Starting rate (5-yr special) | 5.14% | 5.14% |
| Discount from posted | 1.05 pts | 0.85 pts |
| Comparison rate after discount | 5.20% | 5.20% |
| 3 months’ interest | $5,782 | $5,782 |
| Penalty, posted rates unchanged | $5,782 | $5,782 |
| Penalty, posted rates 1 point lower | $12,690 | $12,690 |
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 RBC’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.
RBC vs BMO: questions
Is RBC or BMO better for a mortgage?
Neither wins on everything. BMO’s regular closed mortgage suits someone who will prepay hard; check whether you’re being offered Smart Fixed. Both advertise 5.14% for a 5-year fixed as of November 2, 2026. On the same $480,000 mortgage broken 30 months early after rates fall a point, RBC charges about $2,400 less. BMO gives more lump-sum room (20% vs 10%). Neither wins everything, so get both quotes.
How do RBC and BMO 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, RBC compares with its 3-yr posted rate and BMO with its 3-yr posted rate, giving $7,680 at RBC and $10,080 at BMO. Each bank’s wording is on its profile: RBC, BMO.
Is it cheaper to break a mortgage at RBC or BMO?
It depends on when. For the same $500,000 5-year fixed at 5.29% (posted 6.89% at signing), with 54 months left RBC $15,595 vs BMO $17,823; with 42 months left RBC $13,576 vs BMO $14,255; with 30 months left RBC $7,585 vs BMO $9,956; with 18 months left RBC $7,982 vs BMO $9,717; with 6 months left RBC $5,961 vs BMO $5,961. Your own figure depends on your rate, discount and balance: try the penalty analyzer.
Can I switch from RBC 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 — RBC Royal Bank, checked Nov 2, 2026
- Today’s mortgage rates — BMO, checked Nov 2, 2026
- Understanding mortgage prepayment charges — RBC Royal Bank, checked Oct 31, 2026
- Paying off your mortgage faster (prepayment privileges, prepayment charges, portability) — BMO, checked Nov 2, 2026
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