TD Mortgage Rates
The Toronto-Dominion Bank, commonly referred to as TD Bank, is a multinational bank in Canada that was created following the 1955 merger of The Dominion Bank and the Bank of Toronto. Today TD Bank is considered the second largest bank in Canada based on market capitalization, although by assets alone it is ranked the first. The bank serves over 11 million customers in Canada and 26 million globally. TD Bank offers an array of products including retail and commercial banking, capital markets, insurance products, and wealth management.
TD Fixed Rate Mortgages
A fixed rate mortgage involves a stable interest rate that does not fluctuate over the course of the loan’s term.
TD Variable Rate Mortgages
A variable rate mortgage involves an interest rate that fluctuates based on a certain benchmark, usually a prime rate. Below are TD’s current posted rates:
TD Home Equity FlexLine
TD Home Equity FlexLine is a home equity line of credit (HELOC). In other words, it’s a line of credit that uses positive equity in your home as security. You can borrow up to 80% of your home’s value with TD, but this amount could be lower if you presently hold a mortgage or are using 100% revolving credit. The interest rate for the TD Home Equity FlexLine is variable. The TD Prime Rate is currently set at 2.45%.
TD’s HELOC product is unique because there is an option to have a revolving and term portion. The revolving portion is the amount that you can borrow up to a credit limit that is subject to the variable interest rate. Like all lines of credit, only interest payments are due periodically and you can pay down the balance at your own pace.
The term portion of the FlexLine is optional. If you wish, you can convert part or all of the revolving portion into a term portion. The term portion is essentially a term loan because it is subject to regular payments and must be repaid by a certain date. There is the option to have a closed or open prepayment term portion.
TD Mortgage Prepayment Penalty
If your mortgage is closed, prepayment penalties will likely apply if you attempt to pay part or all of the balance early. Mortgages are a contractual obligation and if you make a payment early, you’re violating the contract which is why you could incur a prepayment penalty. Every bank’s prepayment penalty policy and fee varies.
You can calculate what your prepayment penalty will be using TD’s mortgage prepayment calculator. Even though you might incur a fee, it could still be worth the penalty which is why it’s important to understand the cost.
How to Get a TD Mortgage Pre-Approval
Getting pre-approved for a mortgage can help you stick to a budget while shopping and make the purchasing process smoother. The mortgage pre-approval process only takes 5 to 10 minutes. If you’re approved, TD will hold your mortgage offer for 120 days.
In order to prequalify for a TD mortgage, you usually need to meet the following criteria:
- Have good credit
- Have steady, reliable income, usually from full-time employment
- Be a resident of Canada with a valid Canadian address
- Be the age of majority in your province or territory
For a pre-approval meeting with a TD representative, the bank suggests you bring the following documents and information:
- Current address
- Previous addresses, if you’ve lived at your current address for less than 3 years
- Your current employer’s information, such as their address, phone number, etc.
- Previous employer’s information, if you’ve worked with your current employer for less than 3 years
- Source of verifiable income, such as pay stubs, letters of employment, etc.
- If you’re self-employed, 2 most recent Notice of Assessments from your income tax return
- Value of your assets, such as properties, cars, investments, etc.
- Recent statements related to credit, such as mortgages, loans, credit cards and lines of credit
- Housing expenses, such as property tax, condo fees, utilities, etc.
- Financial information about co-borrowers, if applicable
- Social Insurance Number (optional)
How to Get a TD Mortgage
In order to qualify for a TD mortgage, you usually need to meet the following criteria:
- Have good credit
- Have steady, reliable income, usually from full-time employment
- Be a resident of Canada with a valid Canadian address
- Be the age of majority in your province or territory
TD will likely ask for the documentation and information listed above in the pre-approval section as well when applying for a mortgage. Since TD is one of the biggest banks in Canada, getting approved can be challenging, especially if you don’t have traditionally favourable financial circumstances. Before applying, do what you can to improve your credit and financial position to better your odds of approval.
Using TD Mortgage Specialists
Some people prefer a personal connection when banking. Fortunately, TD has a team of mortgage specialists that can call you or meet in person to discuss your financial needs. If you choose to work with a TD mortgage specialist, be prepared to provide your personal and employment information during your meeting.
Pros of Banking with TD
- Competitive interest rates. Since TD is among the largest banks in Canada, they can offer some of the best rates in the market.
- Pre-approved rates. Once you get pre-approved for a mortgage with TD, the interest rate offer you receive won’t change for 120 days.
- Other services. By being a TD client, you can access other services including financial products and advice.
- TD is one of the best banks in Canada. Working alongside them will give you confidence about your financing decision.
Cons of Banking with TD
- Strict qualification criteria. If you don’t meet the ideal borrower mold, it can be challenging to qualify for a mortgage with TD. Specifically, if you have unstable income or bad or no credit.
- New to Canada. It’s unclear if TD will approve mortgages for individuals that just arrived in Canada. Unfortunately, these borrowers are often considered high risk.
- Special rates. TD offers discounted rates for some of their mortgage plans. While this is great, they are often limited time offers and subject to certain criteria.