Head to head · RBC vs Scotiabank
RBC vs Scotiabank mortgages: rates, prepayment, penalties and HELOCs compared
Short answer: Only RBC publishes a 5-year special (5.14%) 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. Scotiabank gives more lump-sum room (20% vs 10%). Neither wins everything, so get both quotes.
RBC and Scotiabank 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
Only RBC publishes a 5-year special rate (5.14%).
Scotiabank (10%, 15% or 20% by option vs 10% lump sum).
Scotiabank publishes no fixed special rate, so we price the same existing mortgage instead: RBC costs less to leave 30 months early if rates fall a point ($19,680 vs $22,080).
Scotiabank gives more room: RBC up to 120 days; Scotiabank up to 6 months.
RBC Homeline Plan vs Scotia Total Equity Plan (STEP): the limits and structure are in the HELOC row of the term sheet below.
Plan to re-borrow? Compare the HELOCs first. Plan to move? Compare the porting terms. Then take RBC’s written offer to Scotiabank, or the other way round, and ask them to match it on the same term.
Term sheets side by side
| RBC Royal Bank | Scotiabank | |
|---|---|---|
| 5-yr special / posted | 5.14% / 6.19% | — / 6.19% |
| Prime used | RBC Prime 4.70% | Scotiabank Prime 4.70% |
| Prepayment | 10% lump sum a year, 10% payment increase every 12 months, plus Double-Up payments. | 10%, 15% or 20% of the original principal a year, depending on the options chosen. |
| 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. | Greater of 3 months’ interest or IRD vs Scotiabank’s posted rate for the closest term, less your discount. Variable: 3 months’ interest. |
| Portability | Port when buying and selling at the same time; extra money can be blended at the current rate. | Listed as a way to avoid charges; not available on every mortgage solution. |
| HELOC | RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. | STEP: up to 80% (65% revolving); the 80% global limit steps down to 65% over 25 years. |
| Early renewal | Up to 120 days early, no penalty. | Up to 6 months early, no prepayment charge. |
Posted and special rates by term
| Term | RBC special | RBC posted | Scotiabank special | Scotiabank posted |
|---|---|---|---|---|
| 1-year | 5.14% | 5.74% | — | 5.49% |
| 2-year | 5.14% | 5.74% | — | 5.24% |
| 3-year | 5.09% | 6.25% | — | 6.05% |
| 4-year | 5.14% | 6.09% | — | 6.09% |
| 5-year | 5.14% | 6.19% | — | 6.19% |
| 7-year | 5.25% | 6.50% | — | 6.40% |
| 10-year | — | 6.90% | — | 6.80% |
Worked example: the same mortgage at RBC and at Scotiabank
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 | Scotiabank | |
|---|---|---|
| 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. | Listed as a way to avoid charges; not available on every mortgage solution. |
Where RBC and Scotiabank differ most
- The gap is widest with 18 months left: $7,982 at RBC (2-yr posted) vs $11,452 at Scotiabank (2-yr posted).
- Prepayment room differs by $50,000 a year on a $500,000 mortgage (RBC 10% lump sum, Scotiabank 10%, 15% or 20% by option).
- Breaking the same mortgage after rates fall a point costs $2,400 more at Scotiabank ($22,080 vs $19,680): both compare with their 3-yr posted rate, but RBC’s is higher (RBC 6.25% vs Scotiabank 6.05% today), and a higher comparison rate means a smaller differential.
Plan to re-borrow? Compare the HELOCs first. Plan to move? Compare the porting terms.
Both banks round a tie up to the longer posted term and subtract your discount, so with the same time left they usually compare with the same term; the gap comes from their posted tables. Scotiabank publishes no fixed special rate, so its offer is whatever the branch quotes; RBC posts its specials. The structural difference is the readvanceable plan: RBC Homeline lets your credit line grow as you repay, while Scotia STEP’s 80% global limit steps down to 65% over 25 years.
Ask: At Scotiabank, ask which prepayment option (10%, 15% or 20%) your quote carries; it isn’t the same on every mortgage.
When would breaking cost less at RBC or at Scotiabank?
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 | Scotiabank penalty | RBC compares with | Scotiabank compares with |
|---|---|---|---|---|
| 54 | $15,595 | $15,595 | 5-yr posted | 5-yr posted |
| 42 | $13,576 | $13,576 | 4-yr posted | 4-yr posted |
| 30 | $7,585 | $9,956 | 3-yr posted | 3-yr posted |
| 18 | $7,982 | $11,452 | 2-yr posted | 2-yr posted |
| 6 | $5,961 | $5,961 | 1-yr posted | 1-yr posted |
Who feels the difference between RBC and Scotiabank?
The aggressive pre-payer: $100,000 a year at Scotiabank 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 Scotiabank (10%, 15% or 20% by option) 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, Scotiabank’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 Scotiabank from about 2026-12-30 (up to 6 months). 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 Scotiabank, month by month
Selling with 54 months left would cost $15,595 at RBC and $15,595 at Scotiabank, so neither bank 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 $9,634 at Scotiabank. 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 · Scotiabank 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 | Scotiabank | |
|---|---|---|
| Starting rate (5-yr special) | 5.14% | — |
| Discount from posted | 1.05 pts | — |
| Comparison rate after discount | 5.20% | — |
| 3 months’ interest | $5,782 | — |
| Penalty, posted rates unchanged | $5,782 | — |
| Penalty, posted rates 1 point lower | $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 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.
RBC vs Scotiabank: questions
Is RBC or Scotiabank better for a mortgage?
Neither wins on everything. Plan to re-borrow? Compare the HELOCs first. Plan to move? Compare the porting terms. Only RBC publishes a 5-year special (5.14%) 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. Scotiabank gives more lump-sum room (20% vs 10%). Neither wins everything, so get both quotes.
How do RBC and Scotiabank 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 Scotiabank with its 3-yr posted rate, giving $7,680 at RBC and $10,080 at Scotiabank. Each bank’s wording is on its profile: RBC, Scotiabank.
Is it cheaper to break a mortgage at RBC or Scotiabank?
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 Scotiabank $15,595; with 42 months left RBC $13,576 vs Scotiabank $13,576; with 30 months left RBC $7,585 vs Scotiabank $9,956; with 18 months left RBC $7,982 vs Scotiabank $11,452; with 6 months left RBC $5,961 vs Scotiabank $5,961. Your own figure depends on your rate, discount and balance: try the penalty analyzer.
Can I switch from RBC 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 — RBC Royal Bank, checked Nov 2, 2026
- Mortgage rates — Scotiabank, checked Nov 2, 2026
- Understanding mortgage prepayment charges — RBC Royal Bank, checked Oct 31, 2026
- What you need to know: mortgages and mortgage prepayment charges (PDF) — Scotiabank, checked Oct 31, 2026
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