Head to head · Scotiabank vs BMO
Scotiabank vs BMO mortgages: rates, prepayment, penalties and HELOCs compared
Short answer: Only BMO 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, Scotiabank charges about $0 less. Annual lump-sum room is similar. Neither wins everything, so get both quotes.
Scotiabank 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
Only BMO publishes a 5-year special rate (5.14%).
Similar: Scotiabank 10%, 15% or 20% by option; BMO 20% lump sum (Smart Fixed 10%).
Scotiabank publishes no fixed special rate, so we price the same existing mortgage instead: Scotiabank costs less to leave 30 months early if rates fall a point ($22,080 vs $22,080).
Similar: Scotiabank up to 6 months; BMO up to 180 days.
Scotia Total Equity Plan (STEP) vs BMO Homeowner ReadiLine: the limits and structure are in the HELOC row of the term sheet below.
The two widest early-renewal windows; pick on privileges and the HELOC. Then take Scotiabank’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
| Scotiabank | BMO Bank of Montreal | |
|---|---|---|
| 5-yr special / posted | — / 6.19% | 5.14% / 6.09% |
| Prime used | Scotiabank Prime 4.70% | BMO Prime 4.70% |
| Prepayment | 10%, 15% or 20% of the original principal a year, depending on the options chosen. | 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 Scotiabank’s posted rate for the closest term, less your discount. 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 | Listed as a way to avoid charges; not available on every mortgage solution. | Port a fixed closed mortgage; extra money blended at the current fixed posted rate. |
| HELOC | STEP: up to 80% (65% revolving); the 80% global limit steps down to 65% over 25 years. | Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%. |
| Early renewal | Up to 6 months early, no prepayment charge. | Up to 180 days early, no penalty. |
Posted and special rates by term
| Term | Scotiabank special | Scotiabank posted | BMO special | BMO posted |
|---|---|---|---|---|
| 1-year | — | 5.49% | — | 5.49% |
| 2-year | — | 5.24% | — | 4.94% |
| 3-year | — | 6.05% | 4.94% | 6.05% |
| 4-year | — | 6.09% | — | 5.99% |
| 5-year | — | 6.19% | 5.14% | 6.09% |
| 6-year | — | — | — | 6.29% |
| 7-year | — | 6.40% | — | 6.40% |
| 10-year | — | 6.80% | — | 6.80% |
Worked example: the same mortgage at Scotiabank 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.
| Scotiabank | BMO | |
|---|---|---|
| Compares with | 3-yr posted | 3-yr posted |
| Comparison rate after discount | 4.45% | 4.45% |
| 3 months’ interest | $6,348 | $6,348 |
| Penalty if you break now | $10,080 | $10,080 |
| Penalty if posted rates fall 1 point first | $22,080 | $22,080 |
| Most lump-sum room stated, on the original amount | $100,000 | $100,000 |
| Penalty after using this year’s lump sum first | $7,980 | $7,980 |
| Porting | Listed as a way to avoid charges; not available on every mortgage solution. | Port a fixed closed mortgage; extra money blended at the current fixed posted rate. |
Where Scotiabank and BMO differ most
- Which bank is cheaper to leave depends on when you leave: across the term the lead changes hands. The gap is widest with 54 months left: $15,595 at Scotiabank (5-yr posted) vs $17,823 at BMO (5-yr posted).
- Scotiabank’s STEP is the only plan here whose 80% borrowing limit steps down to 65% over 25 years.
The two widest early-renewal windows; pick on privileges and the HELOC.
Scotiabank (up to 6 months) and BMO (up to 180 days) give the longest early-renewal windows of the six, so both suit a borrower who wants to lock in well before maturity. Both compare with a posted rate for the closest term, less your discount, but BMO resolves a tie toward the higher posted rate. Prepayment at Scotiabank depends on the option you pick; BMO’s regular closed mortgage gives 20% / 20%. Scotia STEP’s global limit steps down over time; BMO’s ReadiLine caps the revolving line at 65%.
Ask: Ask Scotiabank which prepayment option you’re being quoted and BMO whether it’s Smart Fixed.
When would breaking cost less at Scotiabank 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 | Scotiabank penalty | BMO penalty | Scotiabank 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 | $9,956 | $9,956 | 3-yr posted | 3-yr posted |
| 18 | $11,452 | $9,717 | 2-yr posted | 1-yr posted |
| 6 | $5,961 | $5,961 | 1-yr posted | 1-yr posted |
Who feels the difference between Scotiabank and BMO?
The mover who can’t port: Scotiabank or BMO, month by month
Selling with 54 months left would cost $15,595 at Scotiabank and $17,823 at BMO, so Scotiabank 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 Scotiabank 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.
Scotiabank 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:
| Scotiabank | BMO | |
|---|---|---|
| Starting rate (5-yr special) | — | 5.14% |
| Discount from posted | — | 0.85 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 Scotiabank’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.
Scotiabank vs BMO: questions
Is Scotiabank or BMO better for a mortgage?
Neither wins on everything. The two widest early-renewal windows; pick on privileges and the HELOC. Only BMO 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, Scotiabank charges about $0 less. Annual lump-sum room is similar. Neither wins everything, so get both quotes.
How do Scotiabank 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, Scotiabank compares with its 3-yr posted rate and BMO with its 3-yr posted rate, giving $10,080 at Scotiabank and $10,080 at BMO. Each bank’s wording is on its profile: Scotiabank, BMO.
Is it cheaper to break a mortgage at Scotiabank 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 Scotiabank $15,595 vs BMO $17,823; with 42 months left Scotiabank $13,576 vs BMO $14,255; with 30 months left Scotiabank $9,956 vs BMO $9,956; with 18 months left Scotiabank $11,452 vs BMO $9,717; with 6 months left Scotiabank $5,961 vs BMO $5,961. Your own figure depends on your rate, discount and balance: try the penalty analyzer.
Can I switch from Scotiabank 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 — Scotiabank, checked Nov 2, 2026
- Today’s mortgage rates — BMO, checked Nov 2, 2026
- What you need to know: mortgages and mortgage prepayment charges (PDF) — Scotiabank, checked Oct 31, 2026
- Paying off your mortgage faster (prepayment privileges, prepayment charges, portability) — BMO, checked Nov 2, 2026
Keep exploring
Educational information only, not financial, legal or tax advice. BankMortgages.ca is independent and is not affiliated with, endorsed by or paid by any bank named on this site. Bank terms change: confirm every rate and term with the lender and the official sources linked on each page before you act. Read the full disclaimer.