Head to head · TD vs BMO
TD vs BMO mortgages: rates, prepayment, penalties and HELOCs compared
Short answer: BMO 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, TD charges about $1,200 less. BMO gives more lump-sum room (20% vs 15%). Neither wins everything, so get both quotes.
TD 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
BMO: 5.14% vs 5.29%. Your offer can differ, so ask both.
BMO (20% lump sum (Smart Fixed 10%) vs 15% lump sum).
BMO in our example: $12,690 vs $13,365 to break a new 5-year after 2 years if rates fall 1 point.
BMO gives more room: TD 120 days (TD’s suggested start); BMO up to 180 days.
TD Home Equity FlexLine vs BMO Homeowner ReadiLine: the limits and structure are in the HELOC row of the term sheet below.
Both are strong for fast payers; BMO’s 20% lump sum is bigger, TD’s payment increase is bigger. Then take TD’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
| TD Canada Trust | BMO Bank of Montreal | |
|---|---|---|
| 5-yr special / posted | 5.29% / 6.14% | 5.14% / 6.09% |
| Prime used | TD Mortgage Prime 4.85% | BMO Prime 4.70% |
| Prepayment | 15% lump sum a year and payment increases up to 100%, once per calendar year. | 20% lump sum and 20% payment increase a year on closed mortgages; Smart Fixed 10% / 10%. |
| Fixed-rate penalty | Higher of 3 months’ interest or IRD using TD’s posted rate for a similar mortgage minus 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 | Port a fixed-rate mortgage (rate, balance, term and amortization) with no prepayment charge, on an approved new application; no window stated. | Port a fixed closed mortgage; extra money blended at the current fixed posted rate. |
| HELOC | TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. | Homeowner ReadiLine: up to 80% in total; revolving line capped at 65%. |
| Early renewal | TD says start 120 days before maturity (renew online through EasyWeb or the app). | Up to 180 days early, no penalty. |
Posted and special rates by term
| Term | TD special | TD posted | BMO special | BMO posted |
|---|---|---|---|---|
| 1-year | — | 5.69% | — | 5.49% |
| 2-year | — | 5.39% | — | 4.94% |
| 3-year | 5.24% | 6.15% | 4.94% | 6.05% |
| 4-year | — | 5.99% | — | 5.99% |
| 5-year | 5.29% | 6.14% | 5.14% | 6.09% |
| 6-year | — | 6.29% | — | 6.29% |
| 7-year | — | 6.40% | — | 6.40% |
| 10-year | — | 6.80% | — | 6.80% |
Worked example: the same mortgage at TD 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.
| TD | BMO | |
|---|---|---|
| Compares with | 3-yr posted | 3-yr posted |
| Comparison rate after discount | 4.55% | 4.45% |
| 3 months’ interest | $6,348 | $6,348 |
| Penalty if you break now | $8,880 | $10,080 |
| Penalty if posted rates fall 1 point first | $20,880 | $22,080 |
| Most lump-sum room stated, on the original amount | $75,000 | $100,000 |
| Penalty after using this year’s lump sum first | $7,492 | $7,980 |
| Porting | Port a fixed-rate mortgage (rate, balance, term and amortization) with no prepayment charge, on an approved new application; no window stated. | Port a fixed closed mortgage; extra money blended at the current fixed posted rate. |
Where TD and BMO differ most
- Variable mortgages price off different primes: TD Mortgage Prime 4.85% vs BMO Prime 4.70%. 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 (TD 15% lump sum, BMO 20% lump sum (Smart Fixed 10%)).
- Breaking the same mortgage after rates fall a point costs $1,200 more at BMO ($22,080 vs $20,880): both compare with their 3-yr posted rate, but TD’s is higher (TD 6.15% vs BMO 6.05% today), and a higher comparison rate means a smaller differential.
Both are strong for fast payers; BMO’s 20% lump sum is bigger, TD’s payment increase is bigger.
TD’s 15% lump sum plus a payment increase of up to 100% versus BMO’s 20% lump sum and 20% increase (regular closed; Smart Fixed is 10% / 10%). A lump-sum payer gets more room at BMO; someone who wants to double the payment gets more at TD. On penalties, BMO’s tie rule picks the higher posted rate, TD rounds to the similar term. BMO lets you renew up to 180 days early; TD suggests 120.
Ask: Ask BMO whether you’re quoted Smart Fixed; ask TD whether its payment-increase privilege resets each calendar year or each anniversary.
When would breaking cost less at TD 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 | TD penalty | BMO penalty | TD compares with | BMO compares with |
|---|---|---|---|---|
| 54 | $16,709 | $17,823 | 5-yr posted | 5-yr posted |
| 42 | $15,273 | $14,255 | 4-yr posted | 3-yr posted |
| 30 | $8,770 | $9,956 | 3-yr posted | 3-yr posted |
| 18 | $10,411 | $9,717 | 2-yr posted | 1-yr posted |
| 6 | $5,961 | $5,961 | 1-yr posted | 1-yr posted |
Who feels the difference between TD and BMO?
The aggressive pre-payer: $100,000 a year at BMO vs $75,000 at TD
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 TD (15% lump sum) you’d owe $27,116 at renewal, paying $81,583. Without lump sums you’d owe $444,528. Kept up, BMO’s room would clear the mortgage in about 4.8 years against 5.8 at TD. Most people won’t prepay this hard; if you will, this is the clause to choose on.
The variable-rate borrower: two different primes
TD prices its variables off TD Mortgage Prime (4.85%); BMO off BMO Prime (4.70%). Their advertised 5-year variable rates are 4.54% and 4.35%, so on $480,000 the first year’s interest is roughly $21,792 vs $20,880, and the monthly payment over 25 years $2,678.91 vs $2,627.29. Compare the rate itself, not the spread: a smaller discount off a lower prime can still be the cheaper loan.
The early renewer: how soon you can lock in
With a 2027-06-30 maturity, TD would let you renew from about 2027-03-02 (120 days (TD’s suggested start)) 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: TD or BMO, month by month
Selling with 54 months left would cost $16,709 at TD and $17,823 at BMO, so TD 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 $10,748 at TD 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.
TD 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:
| TD | BMO | |
|---|---|---|
| Starting rate (5-yr special) | 5.29% | 5.14% |
| Discount from posted | 0.85 pts | 0.85 pts |
| Comparison rate after discount | 5.30% | 5.20% |
| 3 months’ interest | $5,951 | $5,782 |
| Penalty, posted rates unchanged | $5,951 | $5,782 |
| Penalty, posted rates 1 point lower | $13,365 | $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 TD’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.
TD vs BMO: questions
Is TD or BMO better for a mortgage?
Neither wins on everything. Both are strong for fast payers; BMO’s 20% lump sum is bigger, TD’s payment increase is bigger. BMO 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, TD charges about $1,200 less. BMO gives more lump-sum room (20% vs 15%). Neither wins everything, so get both quotes.
How do TD 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, TD compares with its 3-yr posted rate and BMO with its 3-yr posted rate, giving $8,880 at TD and $10,080 at BMO. Each bank’s wording is on its profile: TD, BMO.
Is it cheaper to break a mortgage at TD 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 TD $16,709 vs BMO $17,823; with 42 months left TD $15,273 vs BMO $14,255; with 30 months left TD $8,770 vs BMO $9,956; with 18 months left TD $10,411 vs BMO $9,717; with 6 months left TD $5,961 vs BMO $5,961. Your own figure depends on your rate, discount and balance: try the penalty analyzer.
Can I switch from TD 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 — TD Canada Trust, checked Nov 2, 2026
- Today’s mortgage rates — BMO, checked Nov 2, 2026
- Mortgage prepayment calculator — TD Canada Trust, checked Oct 31, 2026
- Paying off your mortgage faster (prepayment privileges, prepayment charges, portability) — BMO, checked Nov 2, 2026
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