Reviewed by Scott Dillingham · Licensed Mortgage Agent (Ontario, Level 2) · Updated October 1, 2026
Scotiabank positions its mortgages differently than its Big 5 peers — STEP as a default, ARM as the variable structure, and historically the highest posted rates in the group. Here's how to navigate your Scotiabank renewal in 2026.
New to renewals? See our plain-English guide on what a mortgage renewal is, or browse the mortgage renewal FAQ for more general questions.
STEP is Scotiabank's flagship mortgage product — a combined mortgage, HELOC, and secured credit container registered under a single collateral charge. Many Scotiabank mortgage customers are enrolled in STEP by default, though standalone Scotia mortgages as standard charges are available on explicit request.
STEP offers real flexibility during the term: as you pay down principal on the mortgage side, re-advanceable credit becomes available on the HELOC side without a new registration. For borrowers who actively use HELOC credit, this is genuinely useful.
The downside: STEP is a collateral charge, which means switching to another lender at renewal requires full discharge and re-registration (~$700-$1,500 in legal fees). If you don't use the HELOC component, you're paying for flexibility you're not using while taking on switching friction. Confirm your charge type with Scotiabank before shopping.
Scotiabank's variable-rate mortgage is structured as an Adjustable-Rate Mortgage (ARM): when the Bank of Canada changes prime, your monthly payment changes. This differs from the Variable-Rate Mortgage (VRM) structure used by TD, BMO, and CIBC, where the payment is fixed and the amortization period adjusts as rates move.
The key advantages of the ARM structure:
The trade-off: cash-flow variability. If you want payment certainty, a fixed-rate mortgage is simpler; if you're comfortable with payment changes in exchange for transparent rate exposure, Scotia's ARM is one of the cleaner variable structures in Canada.
Scotiabank does not publish a discounted 5-year fixed special online; its posted 5-year fixed rate was 6.19% on October 1, 2026. Published Big 5 5-year fixed specials on October 1, 2026: RBC 5.04%, TD 5.34%, Scotiabank no published special, BMO 4.94% (Smart Fixed), CIBC 5.14%. In our October 2026 sample, broker-channel 5-year fixed rates ran 4.34% insured and 4.34% uninsured.
Because Scotiabank's discounted pricing isn't public, comparison shopping matters most here: bring a written broker quote to the renewal conversation. On a $500K mortgage, every 0.40–0.50% of rate improvement is roughly $10,000–$12,500 over a 5-year term — enough to justify switching even with STEP's collateral-charge costs.
Mid-range among Big 6 — more generous than RBC's 10%, less than BMO's 20%. Comparable to TD's 15% lump-sum.
Call Scotia mortgage services and ask. This determines your switching costs and registration type.
Because Scotiabank tends to trail peers on rates, broker quotes are especially useful. Target 25-40 bps improvement from monolines or credit unions.
Scotia's retention desk has rate authority and often improves significantly on the initial renewal offer when faced with a concrete competing quote.
If on STEP, factor in ~$1,000 in legal costs. Many competing lenders offer cash-back that covers these costs. The rate advantage typically still favors switching.
Active renewal prevents Scotia's auto-renewal, which is priced less favorably than any negotiated rate.
Best Mortgage Renewal Rates
Current best renewal rates — fixed and variable — across Canada.
Switching Lenders at Renewal
How to change lenders at renewal — prescribed-MQR exempt on uninsured straight switches; overlays remain.
Collateral vs. Standard Charge
Why your mortgage charge type affects how easily you can switch.
Payment Shock at Renewal 2026
Why renewal payments rise in 2026 — and how to estimate and reduce the increase.
RBC Royal Bank Renewal
RBC renewal process, rate discount tiers, and alternatives.
Book a Free Strategy Call
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The Scotia Total Equity Plan (STEP) is Scotiabank's combined mortgage, HELOC, and secured credit product, all registered under a single collateral charge. Many Scotiabank mortgage customers are on STEP by default, though standalone Scotia mortgages can be requested as standard charges in some scenarios. If you're on STEP, switching to another lender requires full discharge and re-registration (~$700-$1,500 in legal fees). Confirm your charge type with Scotiabank before shopping.
Scotiabank does not publish a discounted 5-year fixed special online; its posted 5-year fixed rate was 6.19% on October 1, 2026. Your renewal offer will be somewhere below posted, so treat the letter as an opening number. In our October 2026 sample, broker-channel 5-year fixed rates ran 4.34% insured and 4.34% uninsured — benchmark Scotiabank's offer against broker quotes before signing.
Scotiabank uses an Adjustable-Rate Mortgage (ARM) structure for its variable-rate product — when prime changes, your monthly payment changes. This differs from the Variable-Rate Mortgage (VRM) structure used by TD and BMO, where the payment stays fixed and the mortgage amortization adjusts. ARM has no trigger rate, because the payment itself adjusts. For borrowers who want payment certainty, fixed or a VRM-style variable may be preferable; for borrowers comfortable with payment variability, ARM delivers transparent rate changes.
Scotiabank typically allows lump-sum prepayments of up to 15% of original principal per year, and up to 15% payment increase. These are mid-range among Big 6 peers — more generous than RBC's 10% but less than BMO's 20%. Confirm specific privileges for your product at renewal.
Given Scotiabank's higher posted rates and the STEP collateral charge, most Scotiabank customers benefit from actively comparing broker-sourced options at renewal. If a broker can source a rate 25-40 bps lower than Scotiabank's renewal offer — common given Scotiabank's positioning — the net savings typically exceed switching costs even with STEP's collateral charge. Get the comparison in writing before deciding.
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