This paper describes the submission of the CU-UBC team for the SIGMORPHON 2021 Shared Task 2: Unsupervised morphological paradigm clustering. Our system generates paradigms using morphological transformation rules which are discovered from raw data. We experiment with two methods for discovering rules. Our first approach generates prefix and suffix transformations between similar strings. Secondly, we experiment with more general rules which can apply transformations inside the input strings in addition to prefix and suffix transformations. We find that the best overall performance is delivered by prefix and suffix rules but more general transformation rules perform better for languages with templatic morphology and very high morpheme-to-word ratios.