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TD Bank Mortgage Rates
Navigating the mortgage landscape can be complex, but with TD Canada Trust, you have access to a variety of mortgage options designed to suit your financial goals. Whether you’re a first-time homebuyer or looking to refinance, understanding TD’s mortgage rates is crucial to making informed decisions.
We compare mortgage rates from top lenders in Canada, including BMO mortgage rates, CIBC mortgage rates, RBC mortgage rates, TD Bank Mortgage Rates, and MCAP mortgage rates, and Citadel Mortgages rates called the Citadel Smart Home Plan mortgage rates. Let us simplify the process and help you secure approval quickly!
TD Mortgage Rates Overview
Content last updated: December 21, 2024 11:48 am
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.
Current TD Bank Mortgage Rates
TD offers a range of mortgage products with competitive rates:
- Fixed-Rate Mortgages: Lock in your interest rate and monthly payments for the entire term, providing stability and predictability. Terms range from 6 months to 10 years.
- Variable-Rate Mortgages: Benefit from interest rates that fluctuate with the market, potentially offering savings over time. TD’s variable rates are tied to the TD Mortgage Prime Rate.
TD Bank Fixed-Rate Mortgages
TD Bank Fixed Rate Mortgage 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.
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.
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).
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.
Compare TD Mortgage Rates
Why Choose TD Bank for Your Mortgage Needs?
TD is committed to helping Canadians achieve their homeownership dreams through:
- Personalized Solutions: Tailored mortgage options that align with your financial situation and goals.
- Expert Advice: Access to knowledgeable advisors who guide you through every step of the mortgage process.
- Flexible Features: Options like prepayment privileges and various term lengths to suit your needs.
Comparing TD Bank Mortgage Rates
It’s essential to compare mortgage rates across different lenders to ensure you’re getting the best deal. At Rates4U.ca, we provide comprehensive comparisons of TD’s rates with other major Canadian banks, helping you make informed decisions.
Compare rates from:
Special TD Mortgage Special Programs and Offers
TD provides various programs to assist homebuyers:
- First-Time Home Buyer Incentives: Programs designed to make homeownership more accessible for first-time buyers.
- New Resident and Non-Resident Home Ownership Programs: Simplified mortgage approval processes for newcomers to Canada or those looking to invest in Canadian property.
- Mortgage Prepayment Options: Flexibility to prepay up to 15% of the original principal mortgage amount annually without penalties.
For more details, visit Canada Mortgage and Housing Corporation (CMHC) to explore additional programs and resources.
FAQs About TD Bank Mortgage Rates
TD provides fixed-rate and variable-rate mortgages with both open and closed terms to suit various financial needs.
Yes, TD offers options for transferring your mortgage from another lender, often with attractive rates and terms.
Yes, TD allows customers to prepay up to 15% of the original principal mortgage amount annually without penalties.
**Need more insights? Check out the Government of Canada’s Mortgage Guide for helpful tips.
Final Thoughts - TD Mortgage Rates & Mortgage Brokers: Your Key to the Best Rates
When it comes to finding the lowest mortgage rates, working with a mortgage broker can give you a significant advantage. Unlike banks that only offer their own rates and products, mortgage brokers have access to a wide range of lenders, including major banks, credit unions, and alternative lenders. This allows brokers to compare rates and tailor options to meet your unique financial needs.
At Rates4U.ca, we believe in helping you connect with top-tier mortgage brokerages, like Citadel Mortgages, known for consistently offering some of the lowest rates in Canada. By working with trusted brokerages, you get access to exclusive deals, personalized guidance, and expert support throughout the mortgage process.
Here’s how brokerages like Citadel Mortgages can help you:
- Market Access: They work with multiple lenders to find the best rates and terms for your situation.
- Exclusive Deals: Citadel Mortgages is known for negotiating rates lower than those publicly advertised by banks.
- Expert Support: Their experienced mortgage agents guide you through every step, ensuring a stress-free experience.
At Rates4U.ca, our mission is to simplify the mortgage process and connect you with brokers who deliver results. Whether you’re buying your first home, refinancing, or investing, brokerages like Citadel Mortgages can help you save thousands over the life of your mortgage.
Let us help you find the best broker and the lowest rates today—because saving on your mortgage starts here!