TD Bank Mortgage Rates

Below you will find TD Bank’s posted 5-year fixed and variable mortgage rates. Use Rates4u.ca comparison chart to evaluate other banks, brokerages, and lenders against TD Bank and ensure you get the best mortgage rate! 

 

TD Mortgage Rates Overview

Content last updated: Oct 25th, 2020

 

TD Canada Trust is one of Canada’s largest banks and has a robust offering of mortgage products, with competitive rates among the big banks. As with any mortgage, we strongly recommend comparing mortgage rates from multiple lenders and talking with a mortgage broker before deciding on a mortgage lender.

 

Let’s see if an TD Canada Trust mortgage is right for you; read this article to learn about their product and features.

5-YR Variable

1.55%

3-YR Variable

Not Offered

5-YR Fixed

2.44%

10-YR Fixed

5.60%

TD Bank Fixed-Rate Mortgages

TD Bank Fixed Rate Mortgages reduce the risk of future interest rate fluctuations by “locking in” a specific interest rate for the term. This can create peace of mind for homeowners, making it a fundamentally appealing program for home buyers. If you are arranging a new mortgage for a future or current home, your fixed interest rate can be guaranteed up to 120 days before the closing date of your home. If interest rates go up during that time, you will be guaranteed the lower rate.

 

TERM LENGTH

TD RATE

BEST RATE

1-Year Fixed

2-Year Fixed

3-Year Fixed

4-Year Fixed

5-Year Fixed

7-Year Fixed

10-Year Fixed

TD Bank Variable-Rate Mortgages

TD Bank Variable Rate Mortgages provide you with fixed payments over the term; however, the interest rate will fluctuate with any changes in the prime interest rate. If their prime rate goes down, more of your payment will go towards paying off your principal; if our prime rate goes up, more of your payment will go towards interest costs. As a result, this can be a great financial tool for those expecting rates to fall in the upcoming year. A convertible mortgage allows you to convert to another term at any time. This feature provides security and flexibility, as it enables you to convert to a longer closed term should your variable rate mortgage no longer meet your needs. 

 

5-Year Variable

TD Bank mortgage products

TD Canada Trust offers various online tools to help guide your financing choices. They have resources such as the Home Buyer’s Checklist that generates a compare and contrast page between different properties. They also have an e-newsletter specifically for home life, information on home insurance, money-saving tips on home financing, and even a glossary for mortgage terms!  

 

Aside from the traditional fixed and variable, TD also has specialized mortgage offerings, detailed below. 

 

TD’s Six-Month Convertible Mortgage is a product with a six-month term that allows you to convert to a longer, closed term anytime without any fees.  

 

The 5% CashBack Mortgage gives you cash upfront, in an amount equal to 5% of the principal on a six-year fixed-rate residential mortgage. 

 

The Green Mortgage rewards you for supporting environmentally friendly practices. When you purchase CSA approved solar panels or make ENERGY STAR qualified purchases, you become eligible for a 1% discount off the posted rate and up to a 1.5% cash rebate.  

 

TD’s High Ratio Mortgage allows you to purchase a home with as little as 5% down payment.  

 

The Multi-Unit Residential Mortgage allows you to finance a residential property with five or more units.   

 
TD’s Home Equity FlexLine offers a traditional HELOC allowing you to borrow against your property’s equity with ease when you need it most. You can use these funds for investments, your children’s education, renovations, or just some of life’s unexpected moments.  

TD mortgage payment increases

Up to 100% payment increase over the term can be applied to all TD mortgages with the exception of the 1-year Open and the 5-year Open Variable Rate Mortgage. A prepayment privilege of 15% of the original mortgage amount yearly also applies.  

 

Accessing TD mortgage rates

As with all the rates displayed on Rates4u.ca, TD mortgage rates are updated every day and can be found above. You can access these rates conveniently, without stepping foot outside your home, by either filling out an online mortgage application or simply speaking with a TD mortgage agent over the phone or a mortgage broker.  

 

TD mortgage application checklist

Once you have started the application process, TD will ask you questions relating to what you owe and own; what some of the expenses relating to the property, such as taxes, heating costs, and condo fees; and whether you will be using the property to generate income. Additional information TD will require includes: 

 

  • Your T1 and most recent Notice of Assessment
  • A list of your current assets and liabilities
  • Confirmation of your down payment, which may include recent bank statements, RRSP withdrawal confirmations, or a Gift Letter
  • Documents proving current employment and income, including recent payslips
  • Documents are proving additional income, if any.
  • Details about the property, including the listing (if applicable) and any associated bills and taxes (e.g., property taxes, condo fees, and heating costs).
  •  

More on TD Canada Trust

TD Canada Trust is the personal and small business banking division of TD Bank Financial Group. They offer a full range of financial products and serves more than 11 million customers Canada-wide. Their network consists of 1,100 retail branches, internet, telephone banking, and upwards of 2600 automated banking machines.  

 

TD Bank pros

Below are a few benefits of getting your mortgage from TD. 

 

 Full-service: When dealing with the big banks, you can expect access to a full range of financial products in conjunction with your mortgage. As people often prefer to have all their accounts in one place, this proves to be beneficial and efficient. You can open additional accounts such as bank accounts, loans, insurance, investment products, and more.  

 

Convenience: TD’s team of mortgage specialists can assist you wherever your place of preference: at your home, at work, or a public location of your choice. Not to mention, nearly all of their mortgage services are online, which is incredibly advantageous, especially now during a pandemic.  

 

Branch Access: TD has over 1,090 branches across Canada (and 1,240 across the U.S.), making it easy for customers to visit their local branch. 

 

 

Reputation:  As one of the top banks in the country, TD’s reputation precedes it. They have access to extensive resources that allow rigorous security measures to be put in place to protect their clients.  

 

Rate Discretion: On a case-by-case basis, TD can be flexible in negotiating mortgage rates for their clients—your odds of negotiating a lower rate increase as you do more business with them.

 

TD Bank cons

All banks have their flaws. Below are some of the potential pitfalls when you get your mortgage with TD:
 
 

 Higher Mortgage Rates: 


Being one of the largest banks in Canada, TD doesn’t offer the lowest rates in the market. While they offer “special” rates on occasion, they are usually still higher than other financial institutions for a typical borrower.
 

 

 

 Bigger Mortgage Prepayment Penalties: 


If you need to break your fixed-rate mortgage, you can expect to pay some hefty fees. As all of the large banks, this is usually called an IRD (Interest Rate Differential) Penalty, which is calculated based on inflated posted rates resulting in notoriously hefty charges.

  

 

 Collateral Charge Mortgages: 


TD, unlike most banks, registers all of its mortgages collaterally. A benefit of this is that you can refinance and increase your mortgage at a later date without having to pay a 
lawyer (if you qualify.) However, this also means that you will, generally, pay more to switch lenders at renewal should you choose to do so. Collateral charge mortgages require refinancing that entails around $500 to $1000, that standard lender switch does not. TD usually offers subpar renewal rates compared to other lenders, and most people renew more than they refinance before maturity, so this is a factor to consider when shopping.  

 

 

 Limited Advice: 


Obtaining your mortgage from a big bank means that you rely on their mortgage specialist to sell you their product. Which also means that you’re not getting the full scope of your options. While they may be offering you the best mortgage product they have for your situation, there may be better products available from their competitors. 
 

So, when visiting a big bank for a mortgage product, keep in mind that it may not always be in your best interest. This reinforces the importance of using rate comparison sites, such as Rates4u.ca, to have an unbiased view of the mortgage rate market. 

 

 

 Restrictive Mortgage Insurance:  

 

TD’s mortgage life insurance cannot be transferred to a new lender if you choose to switch. You will need to buy new insurance if you decide to switch to a different lender for a better rate. In most cases, this would cause your premiums to increase, especially if your health deteriorates, which would defeat the purpose of you switching lenders to save money in the first place. 

 

TD mortgage Rates

 

 

There are downsides to a fixed-rate mortgage, such as the restriction on paying out your mortgage early. Despite well-thought-out plans, unexpected life events sometimes require a mortgage to be broken and paid out early. 

 

Like all of Canada’s Big six banks, TD fixed-rate mortgage prepayment charges are calculated on the greater of: 

  • The interest rate differential (IRD) or
  • Three months’ interest

This is based on the difference between the rate the bank could lend at today (the posted rate) and your rate for a term equivalent to the remaining term of your mortgage. The more your rate is above today’s published rates, the higher the IRD charge will be. 

 

The Big six banks are notorious for having high— and astronomical— penalties. Always consider this when you are mortgage shopping or ask your mortgage broker; if there is a chance you may need to break your mortgage early, then you may be better off with a fair penalty lender. Or variable-rate mortgage (which charges three months’ interest penalty to break a mortgage early). 

 

TD Prime Rate

As of September 19, 2020, TD’s Prime Rate is 2.45%

 

How does TD set their Prime rate?

Each bank or lender determines its Prime rate. Banks in Canada usually look to the target overnight rate or the Policy Interest Rate set by the Bank of Canada (BoC). Similar changes typically follow changes in the target overnight rate in Prime rates. As a result, most banks and lenders in Canada have similar Prime rates. 

Best Mortgage Rates In Canada

3-Year Variable Mortgage Rates

0.99%

5 Year Fixed Mortgage Rates

1.64%

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Yes

Pre-approval

finance-13-5

15%

Pre-approval

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15%

Lump sum pre-payment

TD Bank Variable Mortgage Rate

1.55%

TD Canada Trust - Best Mortgage Rates - Rates4u.ca

5-Year-Varaible

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No

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

TD Bank Fixed Mortgage Rate

3.49%

TD Canada Trust - Best Mortgage Rates - Rates4u.ca

3-Year Fixed

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No

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

TD Bank Fixed Mortgage Rate

2.44%

TD Canada Trust - Best Mortgage Rates - Rates4u.ca

5-Year-Fixed

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No

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

TD Bank Fixed Mortgage Rate

5.60%

TD Canada Trust - Best Mortgage Rates - Rates4u.ca

10-Year-Fixed

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No

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

Citadel 5 Year Variable High Ratio Mortgage Rate

1.15%

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Yes

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

Citadel 3 Year Variable Mortgage Rate

0.99%

citadel-mortgages

3-Year-Variable

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No

Pre-approval

finance-13-5

20%

Pre-approval

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20%

Lump sum pre-payment

Citadel 5 Year Fixed High Ratio Mortgage Rate

1.64%

citadel-mortgages
save-icon

Yes

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

Citadel 10 Year Fixed Mortgage Rate

2.49%

citadel-mortgages
Dislike_down_hand

No

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

TD Bank Fixed Mortgage Rate

3.14%

TD Canada Trust - Best Mortgage Rates - Rates4u.ca

1-Year-Fixed

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No

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

Citadel 1 Year Fixed Mortgage Rate

1.74%

citadel-mortgages

1-Year-Fixed

Dislike_down_hand

No

Pre-approval

finance-13-5

20%

Pre-Payments

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20%

Lump sum pre-payment

TD Bank Fixed Mortgage Rate

3.19%

TD Canada Trust - Best Mortgage Rates - Rates4u.ca

2-Year Fixed

Dislike_down_hand

No

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

Citadel 2 Year Fixed Mortgage Rate

1.69%

citadel-mortgages

2-Year-Fixed

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No

Pre-approval

finance-13-5

20%

Pre-Payments

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20%

Lump sum pre-payment

Citadel 3 Year Fixed Mortgage Rate

1.39%

citadel-mortgages

3-Year-Fixed

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Yes

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

TD Bank Fixed Mortgage Rate

3.74%

TD Canada Trust - Best Mortgage Rates - Rates4u.ca

4-Year Fixed

Dislike_down_hand

No

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

Citadel 4 Year Fixed Mortgage Rate

1.74%

citadel-mortgages

4-Year-Fixed

Dislike_down_hand

No

Pre-approval

finance-13-5

20%

Pre-Payments

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20%

Lump sum pre-payment

Citadel 5 Year Fixed Mortgage Rate

1.64%

citadel-mortgages

5-Year-Fixed

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Yes

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

TD Bank Fixed Mortgage Rate

5.35%

TD Canada Trust - Best Mortgage Rates - Rates4u.ca

7-Year-Fixed