DibzScotiabank mortgage rates (2026): what to know
How Scotiabank mortgage rates work: 15% + 15% prepayment, Flex Value variable, Scotia STEP, IRD penalties, porting, how to apply and renewal tips.
Scotiabank mortgage rates are published as posted rates, with special and negotiated rates below them that most borrowers are offered. The rate you get depends on the term, fixed or variable, your down payment and whether the mortgage sits inside a Scotia Total Equity Plan (STEP). See Scotiabank's current posted rates on its site. This guide explains Scotiabank's mortgage features, with Bank of Canada averages for context, not Scotiabank's prices.
Dibz isn't affiliated with or endorsed by Scotiabank. Trademarks belong to their owners. Figures shown are Bank of Canada averages, not offers; talk to a licensed mortgage professional before you decide.
Scotiabank quick facts
- Prepayment on standard closed terms: up to 15% of the original principal each year, plus a payment increase of up to 15% of the payment set for the term (Scotiabank).
- Extra payment options: Match-a-Payment and Miss-a-Payment.
- Variable option: the Scotia Flex Value Mortgage, where your rate and payment reset when Scotiabank's prime rate changes.
- Home equity plan: Scotia STEP, up to 80% of your home's value at setup.
- Related brand: Tangerine is a wholly owned Scotiabank subsidiary. See our Tangerine guide.
Scotiabank mortgage products
Scotiabank's mortgage centre lists fixed-rate mortgages, variable options including Flex Value and Ultimate Variable, open and closed terms, second-home mortgages and STEP. Closed fixed terms of 3, 4, 5, 7 and 10 years are described on one product page, with weekly, biweekly, semi-monthly and monthly payment choices.
The Scotia Flex Value Mortgage is a 5-year closed variable mortgage. When Scotiabank's prime rate changes, both your rate and payment reset. You can convert to a fixed term longer than your remaining term at any time without a prepayment charge.
Scotia STEP is a borrowing plan secured by your home. You can initially borrow up to 80% of its value, including up to 65% on line of credit products, and the plan's limit gradually declines to 65% over 25 years. A single STEP can hold up to three mortgages and up to three ScotiaLine lines of credit. Some changes can require a new mortgage registration.
Prepayments and penalties
On Scotiabank's standard closed terms, the yearly privilege is 15% of the original principal plus a payment increase of up to 15%. Scotiabank's mortgage guide notes that, depending on the mortgage solution, the limits can be 10%, 15% or 20%, so check your own agreement. Match-a-Payment lets you make an extra regular payment on any payment date, and Miss-a-Payment lets you skip one if you've matched one earlier in the term.
Breaking early:
- Variable: typically three months' interest, using your current rate (or a cap rate, if there is one).
- Fixed: typically the greater of three months' interest or an IRD. Scotiabank's worked example starts from the posted rate at the beginning of your term, works out the discount you received, and compares your rate with the current rate for a term matching the time you have left.
Porting
Scotiabank says that if you move, you may be able to take your mortgage with you and keep the same rate for the rest of your current term. Ask about conditions and timing before you list your home.
How to apply
Scotiabank's online application, eHOME, handles pre-approval and applications for up to two applicants (Quebec switches excluded). You can also speak with a Home Financing Advisor by phone or in person, or book a branch appointment with a financial advisor.
Posted vs discounted rates at Scotiabank
Scotiabank's posted rates are reference prices. Its special rates and individual offers sit below them, and Scotiabank's Mortgage+ program advertises a preferred rate when you bundle eligible banking products. The posted rate matters because:
- Penalties: the IRD example starts from the posted rate and the discount you received.
- The stress test: new mortgages qualify at the higher of 5.25% or your contract rate plus two points (FCAC), so your discounted rate sets the bar.
How Scotiabank's posted rate compares with the chartered-bank benchmark
The Bank of Canada's posted-rate benchmarks track conventional mortgage rates offered by chartered banks in Canada, which include Scotiabank. Its own posted 5-year rate generally tracks the benchmark, but check Scotiabank's page for the figure on any given day.
Because Flex Value and STEP's lines of credit are tied to prime, the prime rate matters as much as posted fixed rates here. Prime fell through 2024 and 2025, and average new variable rates followed it down:
- Chartered banks' prime rate
- Average new insured variable
- Average new uninsured variable
Prime: last weekly reading of each month. Variable: average rate on new variable-rate mortgages (funds advanced). Averages across lenders, not Scotiabank's rates.
Source: Bank of Canada (free at bankofcanada.ca)
Show the numbers
| Chartered banks' prime rate | Average new insured variable | Average new uninsured variable | |
|---|---|---|---|
| Sep 2024 | 6.45% | 5.87% | 5.93% |
| Oct 2024 | 5.95% | 5.37% | 5.44% |
| Nov 2024 | 5.95% | 5.30% | 5.32% |
| Dec 2024 | 5.45% | 4.83% | 4.86% |
| Jan 2025 | 5.45% | 4.60% | 4.64% |
| Feb 2025 | 5.20% | 4.57% | 4.60% |
| Mar 2025 | 4.95% | 4.34% | 4.42% |
| Apr 2025 | 4.95% | 4.36% | 4.42% |
| May 2025 | 4.95% | 4.43% | 4.47% |
| Jun 2025 | 4.95% | 4.43% | 4.53% |
| Jul 2025 | 4.95% | 4.44% | 4.54% |
| Aug 2025 | 4.95% | 4.40% | 4.49% |
| Sep 2025 | 4.70% | 4.15% | 4.27% |
| Oct 2025 | 4.70% | 3.85% | 3.97% |
| Nov 2025 | 4.45% | 3.79% | 3.88% |
| Dec 2025 | 4.45% | 3.80% | 3.88% |
| Jan 2026 | 4.45% | 3.80% | 3.86% |
| Feb 2026 | 4.45% | 3.77% | 3.84% |
| Mar 2026 | 4.45% | 3.79% | 3.84% |
| Apr 2026 | 4.45% | 3.79% | 3.88% |
| May 2026 | 4.45% | 3.80% | 3.89% |
| Jun 2026 | 4.45% | 3.79% | 3.90% |
| Jul 2026 | 4.45% | 3.75% | 3.86% |
By July 2026, new variable mortgages averaged around 0.6 to 0.7 points below prime, which is the kind of discount a "prime minus" variable rate reflects.
Negotiating your Scotiabank renewal
- Pay down at maturity. Scotiabank's guide notes you can prepay or change terms on the maturity date without a prepayment charge.
- Compare against averages. The Bank of Canada figures on this page show what borrowers have recently paid across lenders.
- Ask about bundling, carefully. If a lower rate depends on other products, weigh their fees too.
- Consider fixed vs Flex Value. Ask how conversion rights and penalties differ, not only the starting rate.
- Check your STEP limit. Because a STEP's limit declines toward 65% of your home's value over 25 years, ask what room the plan will have after renewal.
Try our mortgage calculator to compare fixed and variable renewal scenarios.
Related reading
See 5-year variable mortgage rates for how prime-based pricing works, HELOC rates for plans like STEP, and the Tangerine and RBC guides.
FAQ
What is Scotiabank's 15% + 15% prepayment privilege?
On Scotiabank's standard closed terms you can prepay up to 15% of your original principal each year and increase your payment by up to 15% of the payment set for the term, without a prepayment charge. Some mortgage solutions use 10% or 20% instead.
What is Scotia STEP?
The Scotia Total Equity Plan is a borrowing plan secured by your home. You can borrow up to 80% of its value at setup, including up to 65% on lines of credit, and the limit gradually declines to 65% over 25 years.
How does the Scotia Flex Value Mortgage work?
It is a 5-year closed variable mortgage. Your rate and payment reset when Scotiabank's prime rate changes, and you can convert to a longer fixed term without a prepayment charge.
How is the penalty calculated on a Scotiabank fixed mortgage?
Typically the greater of three months' interest or an interest rate differential, which takes into account the discount you received off the posted rate. Variable mortgages are typically charged three months' interest.
Are the rates on this page Scotiabank's rates?
No. They are Bank of Canada averages across lenders. For Scotiabank's current rates, check its mortgage rates page.
Sources
- Scotiabank: 3, 4, 5, 7 and 10 year closed term mortgages
- Scotiabank: Scotia Flex Value Mortgage
- Scotiabank: Scotia Total Equity Plan (STEP)
- Scotiabank: Mortgage centre
- Scotiabank: What you need to know about mortgages and prepayment charges (PDF)
- Scotiabank: Mortgage rates
- FCAC: Preparing to get a mortgage
- Bank of Canada: prime and new-mortgage rate series (free at bankofcanada.ca)
This article is general information, not financial advice. Rates shown are Bank of Canada averages, not offers. Talk to a licensed mortgage professional before choosing a mortgage.
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