Compare TD Bank Mortgage Rates in Canada
Whether you’re considering a fixed or variable mortgage, CompareMortgages.ca provides up-to-date TD Bank rates alongside offerings from other major Canadian lenders.
Our platform ensures you have access to the most competitive mortgage options that suit your financial goals and budget. Why limit yourself to a single lender when we can help you compare multiple options quickly and easily?
Key Highlights
- TD Bank offers diverse mortgage products, including Home Equity FlexLine and Newcomer Mortgages.
- Flexible payment options include Payment Pause and Payment Vacation, plus up to 15% annual prepayment on closed mortgages.
- TD Bank’s variable-rate mortgage has fixed payments.
Compare TD Bank Mortgage Rates
Below is a table displaying the best rates from the five largest banks in the country. You can easily compare the rates offered by major Canadian lenders and banks, including TD, RBC, CIBC and Scotiabank. We do the research to guarantee you the lowest possible rates upfront every time.
Compare Big Bank Rates
Securing Canada’s most favourable mortgage or loan terms starts with comparing rates from big banks. Interest rates and promotional offers can vary significantly, potentially leading to substantial savings over the life of your loan.
Take Action Today:
- Explore Multiple Options: Don’t settle for the first offer. Research rates from various top lenders and banks across Canada to identify the most competitive options.
- Consider Your Financial Needs: Assess your budget, financial goals, and risk tolerance to determine the loan term and type that best suits you.
- Make an Informed Decision: With comprehensive rate comparisons, make a confident choice that matches your financial needs.
Comparing rates can translate to significant savings and a more favourable financial future.
TD Bank Overview & Stock Information
According to measures of both assets and market capitalization, TD Bank is Canada’s second-largest bank among Canada’s “Big 6”. TD Bank is a multinational financial institution founded in 1855 as the Bank of Toronto and merging with The Dominion Bank in 1955 to form what we know today as the Toronto Dominion (TD) Bank.
Today, the bank has branches across Canada, the United States East Coast, and the rest of the world. TD offers a comprehensive range of financial products and services, including various mortgage options to suit diverse customer needs.
In the News
In October 2024, TD Bank was ordered to pay over $3 billion in fines due to anti-money laundering compliance issues in the US. The bank also faces non-financial sanctions, including an asset cap on its US banking subsidiaries, which limits its growth in the US.
This news does not impact TD’s Canadian operations. Instead, it limits its growth in the US, where TD ranks as one of the top 10 largest banks. As a response, TD has invested over $500 million in remediation and platform enhancements, including a major restructuring of its anti-money laundering program. It has agreed to 3 years of monitoring and 5 years of probation.
Stock information
What to Know About TD Mortgage Posted Rates
TD’s posted rates are used to calculate prepayment penalties. Borrowers are typically offered a discount from the posted rate when obtaining a mortgage.
TD’s advertised rates may differ from those offered by mortgage specialists, brokers, or in-branch. Special offers, promotional rates, or alternative channel discounts often offer lower pricing than advertised. The actual rate you will be offered depends on personal factors like your mortgage amount, loan-to-value (LTV) ratio, property type, risk profile, and credit profile.
TD also provides limited-time cash bonus offers if you meet the eligibility criteria. However, these incentives may come with higher rates or require repayment of the cashback if you break your mortgage before the end of the term.
TD Bank Mortgage Products
Fixed-rate mortgages at TD offer stability and peace of mind. You can choose terms of 6 months, 1,2, 3, 4, 5, 6, 7, or 10 years, and your interest rate won’t increase over the term you select, regardless of whether rates increase or decrease. Each mortgage payment will remain the same over the mortgage term and comprises an interest and a principal component. You must renegotiate a new interest rate at the end of each term.
Variable-rate mortgages (VRM) at TD offer interest rates based on the TD Mortgage Prime Rate, which may increase or decrease over the mortgage term based on changes to the BoC policy rate. You can only choose a 5-year term with TD if you want a variable rate.
Variable mortgages at TD have fixed payments that won’t increase over the term you select, regardless of whether rates increase or decrease. Each mortgage payment will remain the same over the mortgage term; however, the proportion that goes toward the principal and interest will fluctuate based on changes to the TD Mortgage Prime Rate.
When the prime rate increases, more of the mortgage payment goes toward interest and less toward the principal, which could leave you negatively amortized. When the prime rate decreases, more of the mortgage payment goes toward principal and less toward interest, helping you pay down your mortgage faster.
Besides the typical core mortgage products offered by most banks, TD also provides a variety of other mortgage products, including:
6 Month Convertible Mortgage
This mortgage has a 6-month fixed term with the option to convert to a longer closed term when rates are favourable.
TD Home Equity FlexLine
This collateral charge mortgage allows you to leverage your home value if you have 20% or more as a down payment. As you pay down your mortgage, you can borrow against the equity in your home through a Revolving Portion (up to 65%) or Term Portion (up to 80%) of your home’s value minus your current mortgage balance.
Multi-Unit Residential Mortgage
Open to investors and corporations shopping for a mortgage for a residential multi-family building with 5 units or more. You can finance up to 75% of the property’s appraised value.
Bridge Financing
This short-term loan, typically up to 90 days, helps bridge the gap between closing on a new home and waiting for the sale of your current home. Your new property must be approved for a TD Mortgage or TD Home Equity FlexLine to qualify.
Newcomer Mortgage
This mortgage solution helps newcomers to Canada with limited Canadian credit or employment history qualify for a mortgage. To be eligible, you must have at least 3 months of full-time employment in Canada and either be a permanent resident who obtained status within the last 5 years or a temporary resident with a valid work permit who relocated to Canada within the last 2 years.
Agriculture Mortgage
TD has a division that serves the needs of agricultural borrowers, providing mortgage solutions to help finance the expansion or purchase of farmland or anything related to farm operations.
Key Features of TD Mortgages
- Payment Pause: You can request to skip the equivalent of one monthly payment, either partially or in full, no more than once per calendar year and up to 4 times over your amortization.
- Payment Vacation: If you have made prepayments through a lump sum or by increasing your regular payments, you can request to take up to 4 months off your mortgage payments, either partially or in full. This option is only available if you have prepaid an amount that has reduced your amortization.
What Determines TD’s Mortgage Rates?
Lenders like TD set their mortgage rates based on the Bank of Canada (BoC) policy rate or bond yields. The state of the economy in Canada and globally, inflation, and employment can all impact the direction of bond yields and the BoC’s monetary policy decisions, impacting mortgage rates.
Variable mortgage rates are directly tied to the Bank of Canada policy rate. When the BoC changes the policy rate up to 8 times a year, lenders adjust their prime rates accordingly. Most lenders set the prime rate at 2.20% higher than the policy rate. TD is the only big bank that sets its mortgage prime rate an additional 0.15 basis points or 2.35% higher than the policy rate.
Fixed mortgage rates are directly tied to the movement of bond yields with a corresponding maturity. For example, 5-year fixed rates follow the direction of 5-year bond yields. Bond yields are indirectly influenced by what the market thinks the BoC will adjust the policy rate to in the future. Depending on the lender, fixed rates are typically priced 1% to 2% higher than the corresponding bond yield.
Other factors, such as your credit score, loan-to-value (LTV) ratio, down payment, debt service ratios and more, can impact the rates or discounts TD offers you.
TD Bank Mortgage Payment Increases
In the mortgage industry, a prepayment is when a borrower pays off a portion or the entire mortgage early, either with a lump sum payment or by raising their regular monthly payments. Your annual mortgage prepayment limit will vary from one major bank to another. If you want the freedom to pay off your mortgage early, you will want to shop around for a mortgage with favourable prepayment terms.
Whether you have a TD variable-rate mortgage or a TD fixed-rate mortgage, flexible payment options allow you to pay off your mortgage faster. If you currently make monthly payments, you may be able to switch to an accelerated payment schedule to help you pay down your mortgage faster.
You can increase your regular payment amount as often as you like, as long as it doesn’t exceed 100% of your original principal and interest payment. This essentially doubles your regular mortgage payment amount. For example, if you currently pay $800 biweekly toward your mortgage, you can increase your payment up to $1,600.
TD Bank Annual Mortgage Prepayment
If you have a closed mortgage and take advantage of yearly prepayment privileges, you can pay off up to 15% of the loan balance in a single lump sum or over time during the year.
If you have an open mortgage, you can make as many lump-sum payments as you like each year without a prepayment penalty.
Since the entire lump sum will be applied to the principal balance of the mortgage, you will pay significantly less interest throughout the mortgage’s lifetime and be able to pay it off much more quickly.
Important: You will incur a penalty if you choose to prepay your closed mortgage by more than 15% of the mortgage principal per year.
| Canadian Bank Closed Mortgage | Prepayment Amounts |
|---|---|
| RBC | 10% |
| National Bank | 10% |
| CIBC | 10% |
| TD Bank | 15% |
| Scotiabank | 15% |
| BMO | 20% |
Frequently Asked Questions
Can I negotiate my mortgage rate with TD Bank?
You should always negotiate your mortgage rate, as the first offer is rarely their best. However, TD may offer rate discounts based on your credit profile, LTV, down payment, and debt service ratios.
What is the difference between fixed and variable mortgage rates?
Fixed rates provide predictable payments that remain constant throughout the mortgage term. Variable rates fluctuate with the TD mortgage prime rate, but your payment won’t. If rates decrease, less of your payments go toward interest and more toward principal, helping you pay off your mortgage faster.
If rates rise, more of your payments will go toward interest and less to principal, which could require you to increase your payment amount, prepay, or convert your mortgage to a fixed term should rates increase to the point your regular payment no longer covers the full interest amount (negative amortization).
How long is a mortgage pre-approval valid with TD Bank?
TD Bank’s mortgage pre-approval is typically valid for 120 days, during which your rate is guaranteed, subject to conditions. If rates go down during the 120 days, you can ask for a float down to adjust the rate to reflect the current lower rate.
Final Thoughts
Even though TD Bank is an excellent option for many mortgage borrowers, it is always a smart call to shop around for the best rate whenever you are in the market for a new mortgage, renewal, or refinance.
Ready to find the best mortgage rate for your needs? Use Compare Mortgages to explore TD Bank’s offerings alongside those of other top Canadian lenders.