Head to head · RBC vs TD
RBC vs TD mortgages: rates, prepayment, penalties and HELOCs compared
Short answer: RBC advertises the lower 5-year fixed (5.14% vs 5.29%) as of November 2, 2026. On the same $480,000 mortgage broken 30 months early after rates fall a point, RBC charges about $1,200 less. TD gives more lump-sum room (15% vs 10%). Neither wins everything, so get both quotes.
RBC and TD 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
RBC: 5.14% vs 5.29%. Your offer can differ, so ask both.
TD (15% lump sum vs 10% lump sum).
RBC in our example: $12,690 vs $13,365 to break a new 5-year after 2 years if rates fall 1 point.
Similar: RBC up to 120 days; TD 120 days (TD’s suggested start).
RBC Homeline Plan vs TD Home Equity FlexLine: the limits and structure are in the HELOC row of the term sheet below.
Fast payers lean TD; borrowers who want to skip or double a payment lean RBC. Then take RBC’s written offer to TD, or the other way round, and ask them to match it on the same term.
Term sheets side by side
| RBC Royal Bank | TD Canada Trust | |
|---|---|---|
| 5-yr special / posted | 5.14% / 6.19% | 5.29% / 6.14% |
| Prime used | RBC Prime 4.70% | TD Mortgage Prime 4.85% |
| Prepayment | 10% lump sum a year, 10% payment increase every 12 months, plus Double-Up payments. | 15% lump sum a year and payment increases up to 100%, once per calendar year. |
| 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 using TD’s posted rate for a similar mortgage minus 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. | Port a fixed-rate mortgage (rate, balance, term and amortization) with no prepayment charge, on an approved new application; no window stated. |
| HELOC | RBC Homeline Plan: up to 80% in total; Royal Credit Line up to 65%, growing as you repay. | TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. |
| Early renewal | Up to 120 days early, no penalty. | TD says start 120 days before maturity (renew online through EasyWeb or the app). |
Posted and special rates by term
| Term | RBC special | RBC posted | TD special | TD posted |
|---|---|---|---|---|
| 1-year | 5.14% | 5.74% | — | 5.69% |
| 2-year | 5.14% | 5.74% | — | 5.39% |
| 3-year | 5.09% | 6.25% | 5.24% | 6.15% |
| 4-year | 5.14% | 6.09% | — | 5.99% |
| 5-year | 5.14% | 6.19% | 5.29% | 6.14% |
| 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 TD
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 | TD | |
|---|---|---|
| Compares with | 3-yr posted | 3-yr posted |
| Comparison rate after discount | 4.65% | 4.55% |
| 3 months’ interest | $6,348 | $6,348 |
| Penalty if you break now | $7,680 | $8,880 |
| Penalty if posted rates fall 1 point first | $19,680 | $20,880 |
| Most lump-sum room stated, on the original amount | $50,000 | $75,000 |
| Penalty after using this year’s lump sum first | $6,880 | $7,492 |
| Porting | Port when buying and selling at the same time; extra money can be blended at the current rate. | Port a fixed-rate mortgage (rate, balance, term and amortization) with no prepayment charge, on an approved new application; no window stated. |
Where RBC and TD differ most
- The gap is widest with 18 months left: $7,982 at RBC (2-yr posted) vs $10,411 at TD (2-yr posted).
- Variable mortgages price off different primes: RBC Prime 4.70% vs TD Mortgage Prime 4.85%. At the same spread that’s about $720 a year on $480,000.
- Prepayment room differs by $25,000 a year on a $500,000 mortgage (RBC 10% lump sum, TD 15% lump sum).
Fast payers lean TD; borrowers who want to skip or double a payment lean RBC.
RBC and TD describe the same penalty idea (posted rate for a similar term, less your discount) and, 30 months from the end, both land on their 3-year posted rate. So the exit cost turns on whose 3-year posted rate is higher, not on the formula. The day-to-day difference is prepayment: TD lets you put 15% of the original amount down each year and raise the payment by up to 100% once a calendar year; RBC allows 10% and 10%, plus Double-Up payments. On a variable, TD prices off its own TD Mortgage Prime rather than the prime the other banks post.
Ask: Ask RBC whether Double-Up payments count against the 10% increase, and ask both how long you have between selling and buying to port: neither states a window.
When would breaking cost less at RBC or at TD?
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 | TD penalty | RBC compares with | TD compares with |
|---|---|---|---|---|
| 54 | $15,595 | $16,709 | 5-yr posted | 5-yr posted |
| 42 | $13,576 | $15,273 | 4-yr posted | 4-yr posted |
| 30 | $7,585 | $8,770 | 3-yr posted | 3-yr posted |
| 18 | $7,982 | $10,411 | 2-yr posted | 2-yr posted |
| 6 | $5,961 | $5,961 | 1-yr posted | 1-yr posted |
Who feels the difference between RBC and TD?
The aggressive pre-payer: $75,000 a year at TD 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 TD (15% lump sum) you’d owe $27,116 at renewal, paying $81,583 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, TD’s room would clear the mortgage in about 5.8 years against 7.3 at RBC. Most people won’t prepay this hard; if you will, this is the clause to choose on.
The variable-rate borrower: two different primes
RBC prices its variables off RBC Prime (4.70%); TD off TD Mortgage Prime (4.85%). Their advertised 5-year variable rates are 4.40% and 4.54%, so on $480,000 the first year’s interest is roughly $21,120 vs $21,792, and the monthly payment over 25 years $2,640.82 vs $2,678.91. Compare the rate itself, not the spread: a smaller discount off a lower prime can still be the cheaper loan.
The mover who can’t port: RBC or TD, month by month
Selling with 54 months left would cost $15,595 at RBC and $16,709 at TD, 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 $10,748 at TD. 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 · TD 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 | TD | |
|---|---|---|
| Starting rate (5-yr special) | 5.14% | 5.29% |
| Discount from posted | 1.05 pts | 0.85 pts |
| Comparison rate after discount | 5.20% | 5.30% |
| 3 months’ interest | $5,782 | $5,951 |
| Penalty, posted rates unchanged | $5,782 | $5,951 |
| Penalty, posted rates 1 point lower | $12,690 | $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 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 TD (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 TD: questions
Is RBC or TD better for a mortgage?
Neither wins on everything. Fast payers lean TD; borrowers who want to skip or double a payment lean RBC. RBC advertises the lower 5-year fixed (5.14% vs 5.29%) as of November 2, 2026. On the same $480,000 mortgage broken 30 months early after rates fall a point, RBC charges about $1,200 less. TD gives more lump-sum room (15% vs 10%). Neither wins everything, so get both quotes.
How do RBC and TD 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 TD with its 3-yr posted rate, giving $7,680 at RBC and $8,880 at TD. Each bank’s wording is on its profile: RBC, TD.
Is it cheaper to break a mortgage at RBC or TD?
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 TD $16,709; with 42 months left RBC $13,576 vs TD $15,273; with 30 months left RBC $7,585 vs TD $8,770; with 18 months left RBC $7,982 vs TD $10,411; with 6 months left RBC $5,961 vs TD $5,961. Your own figure depends on your rate, discount and balance: try the penalty analyzer.
Can I switch from RBC to TD 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 — TD Canada Trust, checked Nov 2, 2026
- Understanding mortgage prepayment charges — RBC Royal Bank, checked Oct 31, 2026
- Mortgage prepayment calculator — TD Canada Trust, checked Oct 31, 2026
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