On this page you will find current TD's fixed and variable mortgage rates. To find reliable information about mortgages, including accurate posted rates, use My Rate Compass to research your options before selecting a mortgage lender.
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.
A fixed rate mortgage involves a stable interest rate that does not fluctuate over the course of the loan’s term.
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 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.
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.
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:
For a pre-approval meeting with a TD representative, the bank suggests you bring the following documents and information:
In order to qualify for a TD mortgage, you usually need to meet the following criteria:
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.
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.
Banks offer different kinds of rates for mortgages. All of Canada’s big banks usually offer three types of rates: inflated rates used for reference, contracts and penalties; rates they post online or advertise to customers as special or limited time offers; and rates they keep quiet about but are the best rates, normally these are negotiated.
Posted rates are the rates used to determine penalty fees. As a result, these rates are inflated to get banks more money. No one should be paying posted rates on a mortgage. They are used for reference and customers can negotiate or seek out better advertised rates from there.
Special mortgage rates are the rates normally offered online or in advertisements as a limited time deal. They are not limited time deals or special in any way. They are lower than posted rates and generally what mortgage specialists can outright offer clients. However, smaller lenders and credit unions generally offer more competitive rates than the big banks’ special rates. Seeking out comparable loans and their rates can put you in a position to ask for even better rates than what big banks offer you as “special”.
Discretionary rates are the good deals big banks can offer, but won’t openly tell clients about or advertise publicly. Banks will offer these rates to preferred clients, because they don’t want to lose their business. Ultimately, banks want business and any client, preferred or not, can negotiate rates down into the discretionary category.
