Big-bank profile · The Bank of Nova Scotia
Scotiabank mortgages: rates, prepayment, penalties and HELOC
Short answer: Scotiabank’s 5-year fixed posted rate was 6.19% on November 2, 2026. Closed mortgages allow lump sums of 10% to 20% a year. Breaking a fixed term costs the higher of 3 months’ interest or an IRD against its posted rate for the closest term, less your discount.
Scotiabank sells fixed terms from six months to ten years, the Scotia Flex Value variable mortgage and the Scotia Total Equity Plan (STEP). Its prepayment privileges depend on the options you choose: 10%, 15% or 20% a year.
Bank pages checked November 2, 2026 · Independent guide, not affiliated with Scotiabank.
Mortgage products
- Fixed: 6-month and 1-year open; 6-month flexible/closed; 1, 2, 3, 4, 5, 7 and 10-year closed. The 6-month flexible/closed can be locked into a closed fixed term of 1 year or longer without a prepayment charge. [Scotiabank, checked Oct 31, 2026]
- Variable: Scotia Flex Value Mortgage, 5-year closed and 5-year open, tied to Scotiabank Prime; a Flex Value can be converted to a fixed term longer than the time remaining with no prepayment charge. [Scotiabank, checked Oct 31, 2026]
- The rates page also lists a Scotia Ultimate Variable Rate Mortgage, 3-year closed. [Scotiabank, checked Nov 2, 2026]
Posted and special rates
| Term | Rate | Type |
|---|---|---|
| 5-year fixed (closed) | 6.190% | Posted |
| 3-year fixed (closed) | 6.050% | Posted |
| 1-year fixed (closed) | 5.490% | Posted |
| Flex Value 5-year closed (variable) | 5.150% | Posted |
Scotiabank publishes no fixed special rates; its advertised specials are variable products, listed with both a rate and an APR. The Flex Value product page showed Scotiabank Prime at 4.70%. [Scotiabank, checked Nov 2, 2026]
Posted rates are the bank’s list rates; most borrowers are offered a discount from them. The posted rate still matters after you sign, because the big banks use it in the IRD penalty. Read posted vs special rates, and score any quote on IsThisAGoodRate.ca.
Prepayment privileges
- Depending on the options you select, prepay 10%, 15% or 20% of the original principal at any time during each year of the term. [Scotiabank, checked Oct 31, 2026]
- Payment increases are available once each year; the guide gives a 10% increase as an example where the mortgage solution allows it. [Scotiabank, checked Oct 31, 2026]
Prepayment penalty
- Fixed closed: the greater of 3 months’ interest or the IRD. [Scotiabank, checked Oct 31, 2026]
- IRD comparison: the “Current Interest Rate” is Scotiabank’s current posted rate for a new fixed closed term closest to your remaining term, discounted by any rate discount you received; calculated on a present-value basis. [Scotiabank, checked Oct 31, 2026]
- Variable closed: 3 months’ interest at your variable rate at the time of prepayment. [Scotiabank, checked Oct 31, 2026]
- Terms over 5 years: prepaying after the fifth year is limited to 3 months’ interest. [Scotiabank, checked Oct 31, 2026]
Scotiabank penalty calculator (uses Scotiabank’s posted rates) · Scotiabank’s own penalty page ↗
Worked example: what breaking a Scotiabank mortgage would cost
A $500,000 5-year fixed at 5.29%, 25-year amortization, signed when Scotiabank’s posted 5-year rate was 6.89% (a 1.60-point discount). Priced with Scotiabank’s own posted table (November 2, 2026) and the rule it publishes, the cost to break falls like this as the term runs down:
| Months left | Balance | Scotiabank compares with | Rate after discount | 3 months’ interest | Estimated penalty |
|---|---|---|---|---|---|
| 54 | $495,082 | 5-yr posted | 4.59% | $6,547 | $15,595 |
| 42 | $484,851 | 4-yr posted | 4.49% | $6,412 | $13,576 |
| 30 | $474,072 | 3-yr posted | 4.45% | $6,270 | $9,956 |
| 18 | $462,715 | 2-yr posted | 3.64% | $6,119 | $11,452 |
| 6 | $450,750 | 1-yr posted | 3.89% | $5,961 | $5,961 |
With 30 months left, Scotiabank would charge about $9,956, number 3 of six from cheapest for this mortgage (RBC $7,585, CIBC $19,555). If Scotiabank’s posted rates fell a point before you broke, it would rise to $21,807. Using the largest lump-sum privilege Scotiabank states (20% of the original amount) first ($100,000) would bring it to $7,856.
An estimate from this site’s engine, simple interest over the months left; Scotiabank’s written payout figure governs. Price your own Scotiabank mortgage.
Portability
- Scotiabank lists portability as a way to avoid prepayment charges, subject to the home meeting its residential standards and maximum loan amounts; it may not be available for all mortgage solutions. [Scotiabank, checked Oct 31, 2026]
HELOC and readvanceable: Scotia Total Equity Plan (STEP)
- Borrow up to 80% of your home’s value, including up to 65% in line-of-credit products. [Scotiabank, checked Oct 31, 2026]
- The STEP global limit decreases monthly over 25 years to 65% of the home’s value (it stays fixed if set at or below 65%). [Scotiabank, checked Oct 31, 2026]
- A designated ScotiaLine limit can rise as mortgage principal is repaid, while revolving credit stays under 65%. [Scotiabank, checked Oct 31, 2026]
Renewal
- You can renew up to 6 months before your mortgage expires, without a prepayment charge. [Scotiabank, checked Oct 31, 2026]
Other features worth knowing
- Special-offer rates require the mortgage to be advanced within 120 days of application. [Scotiabank, checked Nov 2, 2026]
Scotiabank’s privileges depend on the options in your contract (10%, 15% or 20%), so ask which you are getting. Its up-to-6-months early renewal is, with BMO’s 180 days, the widest window here. Note STEP’s shrinking global limit.
Official Scotiabank pages
- Scotiabank mortgage rates
- Scotiabank prepayment charges guide (PDF)
- Scotia Total Equity Plan
- Institution profile (regulator, deposit insurance): Scotiabank on CanadianBanks.ca
Scotiabank mortgage questions
How does Scotiabank calculate its IRD?
Its prepayment charges guide compares the interest on the amount prepaid at your rate with the interest at the “Current Interest Rate”: the posted rate for the fixed closed term closest to your remaining term, less the discount you received. You pay the greater of that IRD and 3 months’ interest.
What is unusual about STEP?
STEP lets you borrow up to 80% of the home’s value, but that global limit declines monthly over 25 years to 65%, so the room shrinks over time unless it was set at 65% or less.
Sources
- Mortgage rates — Scotiabank, checked Nov 2, 2026
- What you need to know: mortgages and mortgage prepayment charges (PDF) — Scotiabank, checked Oct 31, 2026
- Fixed rate mortgages — Scotiabank, checked Oct 31, 2026
- Scotia Flex Value Mortgage, closed term — Scotiabank, checked Oct 31, 2026
- Understanding mortgage prepayments and charges — Scotiabank, checked Oct 31, 2026
- Scotia Total Equity Plan (STEP) — Scotiabank, checked Oct 31, 2026
- Mortgage renewal — Scotiabank, checked Oct 31, 2026
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.
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Last checked November 2, 2026. Spot something out of date? Tell us at hello@mitey.ca.
