Head to head · TD vs Scotiabank
TD vs Scotiabank mortgages: rates, prepayment, penalties and HELOCs compared
Short answer: Only TD publishes a 5-year special (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. Scotiabank gives more lump-sum room (20% vs 15%). Neither wins everything, so get both quotes.
TD 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 TD publishes a 5-year special rate (5.29%).
Scotiabank (10%, 15% or 20% by option vs 15% lump sum).
Scotiabank publishes no fixed special rate, so we price the same existing mortgage instead: TD costs less to leave 30 months early if rates fall a point ($20,880 vs $22,080).
Scotiabank gives more room: TD 120 days (TD’s suggested start); Scotiabank up to 6 months.
TD Home Equity FlexLine vs Scotia Total Equity Plan (STEP): the limits and structure are in the HELOC row of the term sheet below.
TD for a borrower who wants published specials and big payment increases; Scotiabank for the widest early-renewal window. Then take TD’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
| TD Canada Trust | Scotiabank | |
|---|---|---|
| 5-yr special / posted | 5.29% / 6.14% | — / 6.19% |
| Prime used | TD Mortgage Prime 4.85% | Scotiabank Prime 4.70% |
| Prepayment | 15% lump sum a year and payment increases up to 100%, once per calendar year. | 10%, 15% or 20% of the original principal a year, depending on the options chosen. |
| 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. | 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 a fixed-rate mortgage (rate, balance, term and amortization) with no prepayment charge, on an approved new application; no window stated. | Listed as a way to avoid charges; not available on every mortgage solution. |
| HELOC | TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. | STEP: up to 80% (65% revolving); the 80% global limit steps down to 65% over 25 years. |
| Early renewal | TD says start 120 days before maturity (renew online through EasyWeb or the app). | Up to 6 months early, no prepayment charge. |
Posted and special rates by term
| Term | TD special | TD posted | Scotiabank special | Scotiabank posted |
|---|---|---|---|---|
| 1-year | — | 5.69% | — | 5.49% |
| 2-year | — | 5.39% | — | 5.24% |
| 3-year | 5.24% | 6.15% | — | 6.05% |
| 4-year | — | 5.99% | — | 6.09% |
| 5-year | 5.29% | 6.14% | — | 6.19% |
| 6-year | — | 6.29% | — | — |
| 7-year | — | 6.40% | — | 6.40% |
| 10-year | — | 6.80% | — | 6.80% |
Worked example: the same mortgage at TD 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.
| TD | Scotiabank | |
|---|---|---|
| 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. | Listed as a way to avoid charges; not available on every mortgage solution. |
Where TD and Scotiabank 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 42 months left: $15,273 at TD (4-yr posted) vs $13,576 at Scotiabank (4-yr posted).
- Variable mortgages price off different primes: TD Mortgage Prime 4.85% vs Scotiabank 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, Scotiabank 10%, 15% or 20% by option).
TD for a borrower who wants published specials and big payment increases; Scotiabank for the widest early-renewal window.
TD publishes 3- and 5-year specials and lets you raise your payment by up to 100% once a calendar year; Scotiabank publishes no fixed specials and ties its prepayment to the option in your contract. Both describe a posted-rate IRD less your discount. Scotiabank lets you renew up to 6 months early without a charge; TD suggests starting 120 days before maturity. Variable borrowers should note TD’s separate mortgage prime.
Ask: At TD, ask how long you have to port (it states no window). At Scotiabank, ask whether porting is available on the specific mortgage solution you’re offered.
When would breaking cost less at TD 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 | TD penalty | Scotiabank penalty | TD compares with | Scotiabank compares with |
|---|---|---|---|---|
| 54 | $16,709 | $15,595 | 5-yr posted | 5-yr posted |
| 42 | $15,273 | $13,576 | 4-yr posted | 4-yr posted |
| 30 | $8,770 | $9,956 | 3-yr posted | 3-yr posted |
| 18 | $10,411 | $11,452 | 2-yr posted | 2-yr posted |
| 6 | $5,961 | $5,961 | 1-yr posted | 1-yr posted |
Who feels the difference between TD and Scotiabank?
The aggressive pre-payer: $100,000 a year at Scotiabank 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 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 TD (15% lump sum) you’d owe $27,116 at renewal, paying $81,583. Without lump sums you’d owe $444,528. Kept up, Scotiabank’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 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 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: TD or Scotiabank, month by month
Selling with 54 months left would cost $16,709 at TD and $15,595 at Scotiabank, 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 $10,748 at TD 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.
TD 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:
| TD | Scotiabank | |
|---|---|---|
| Starting rate (5-yr special) | 5.29% | — |
| Discount from posted | 0.85 pts | — |
| Comparison rate after discount | 5.30% | — |
| 3 months’ interest | $5,951 | — |
| Penalty, posted rates unchanged | $5,951 | — |
| Penalty, posted rates 1 point lower | $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 TD’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.
TD vs Scotiabank: questions
Is TD or Scotiabank better for a mortgage?
Neither wins on everything. TD for a borrower who wants published specials and big payment increases; Scotiabank for the widest early-renewal window. Only TD publishes a 5-year special (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. Scotiabank gives more lump-sum room (20% vs 15%). Neither wins everything, so get both quotes.
How do TD 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, TD compares with its 3-yr posted rate and Scotiabank with its 3-yr posted rate, giving $8,880 at TD and $10,080 at Scotiabank. Each bank’s wording is on its profile: TD, Scotiabank.
Is it cheaper to break a mortgage at TD 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 TD $16,709 vs Scotiabank $15,595; with 42 months left TD $15,273 vs Scotiabank $13,576; with 30 months left TD $8,770 vs Scotiabank $9,956; with 18 months left TD $10,411 vs Scotiabank $11,452; with 6 months left TD $5,961 vs Scotiabank $5,961. Your own figure depends on your rate, discount and balance: try the penalty analyzer.
Can I switch from TD 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 — TD Canada Trust, checked Nov 2, 2026
- Mortgage rates — Scotiabank, checked Nov 2, 2026
- Mortgage prepayment calculator — TD Canada Trust, checked Oct 31, 2026
- What you need to know: mortgages and mortgage prepayment charges (PDF) — Scotiabank, checked Oct 31, 2026
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