Discover competitive TD mortgage rates designed to help you find the perfect financing solution for your dream home, whether you’re buying, refinancing, or renewing.
TD Bank is one of Canada’s largest financial institutions, offering a wide range of mortgage products tailored to meet the needs of various homebuyers. Whether you are buying your first home, renewing your mortgage, or comparing options, here’s a comprehensive guide to understanding TD mortgage rates and how they stack up against other lenders.
TD Mortgage Overview
TD Bank offers a wide range of mortgage products and services to help Canadians achieve their dream of homeownership. With a strong presence in Canada and the US, TD Bank is one of the largest banks in Canada and a leading provider of mortgage solutions. From fixed rate mortgages to variable rate mortgages, TD Bank offers competitive rates and flexible payment options to suit different needs and budgets.
What Type of TD Bank Mortgage Rates Does TD Offer?
TD provides a variety of mortgage rate options, including competitive bank mortgage rates for both fixed and variable options:
- Fixed Rates: These rates remain constant over the term of the mortgage, providing predictable monthly payments. TD offers terms ranging from six months to ten years.
- Variable Rates: Based on the TD Prime Rate, variable-rate mortgages fluctuate with market conditions. While payments remain consistent, the portion applied to principal versus interest may vary.
- Special Offers: TD often features promotional rates for new mortgage clients or those renewing their mortgages, which may include discounts or cashback incentives.
- Hybrid Mortgages: These combine fixed and variable rates, offering stability and flexibility in one mortgage product.
- Insured Mortgages: These are specific mortgage rates associated with down payments of less than 20%. Rates can vary based on factors such as credit scores or whether a mortgage is conventional. Insured mortgages may offer different rates compared to conventional options.
Do I Have to Renew My TD Mortgage with TD?
No, you are not obligated to renew your TD mortgage with TD. As your mortgage term approaches its end, you can shop around to compare mortgage renewal rates and terms from other lenders. While TD may offer incentives for renewing, it’s a good idea to consult with a mortgage broker to explore all available options and negotiate the best deal. It is also crucial to review your mortgage agreement to understand the terms and potential penalties associated with renewal or switching lenders.
How Do TD Mortgage Rates Compare to the Other Big Banks?
TD’s mortgage rates are competitive with those offered by other major Canadian banks such as RBC, BMO, CIBC, and Scotiabank. Different types of mortgages, such as open versus closed mortgages, are impacted by varying interest rates, which can affect monthly payments and the overall affordability of borrowing. Rates may vary depending on the product, term, and your qualifications as a borrower. TD frequently provides promotional rates to stay competitive, making it essential to compare offerings across multiple banks to find the best fit.
How Do TD Mortgage Rates Compare to Credit Unions?
Credit unions often offer slightly lower mortgage rates than big banks, including TD. However, the difference may come with trade-offs, such as fewer product options or less flexibility. TD’s strength lies in its wide array of services, convenience, and financial stability. Borrowers should weigh these factors alongside the rate differences when deciding between TD and a credit union. Additionally, individuals with a low credit score may receive different, potentially higher rates compared to those with higher credit scores.
If I Bank with Another Bank, Do I Need to Switch My Accounts to TD?
No, you do not need to switch your accounts to TD to get a mortgage with them. While some clients may find it convenient to consolidate their banking with their mortgage lender, TD does not require this. You can maintain your existing accounts at another bank while holding a mortgage with TD. TD Canada Trust offers the convenience of flexible banking along with the stability of fixed-rate mortgage options, ensuring predictable mortgage payments over selected terms.
What Is the TD Prime Rate?
The TD Prime Rate is the interest rate TD Bank uses as a benchmark for setting variable-rate loans, including variable-rate mortgages and lines of credit. As of now, the TD Prime Rate is updated regularly to reflect changes in the Bank of Canada’s policy rate and other market conditions. Always check the current rate before making mortgage decisions. TD Bank mortgage rates start from 4.99%, and it is crucial to look for the most current information to ensure you are getting the best rate available.
How to Qualify for a Mortgage with TD
To qualify for a TD mortgage, you will need to meet the following criteria:
- Credit Score: A good credit score is essential. Typically, a score of 680 or higher improves your chances of approval and access to better rates.
- Income Verification: TD will require proof of stable income through pay stubs, tax returns, or other documentation.
- Debt-to-Income Ratio: Lenders assess your ability to manage payments by calculating your gross debt service (GDS) and total debt service (TDS) ratios. TD typically adheres to industry standards, with TDS below 44%.
- Down Payment: You must provide at least the minimum required down payment, ranging from 5% to 20%, depending on the purchase price.
- Documentation: Prepare essential documents such as ID, proof of employment, bank statements, and details of your assets and liabilities.
- Making prepayments can significantly reduce interest payments and help you pay down your mortgage faster.
TD Mortgage Features
TD Bank’s mortgage features are designed to provide flexibility and convenience to homeowners. Some of the key features include:
TD Payment Options
TD Bank offers flexible payment options to help homeowners manage their mortgage payments. With TD’s payment options, you can:
- Increase your monthly payment by up to 100% once a year
- Make a lump sum payment of up to 15% of your original mortgage principal each year
- Skip one monthly payment per year
- Take a payment vacation for up to four months
TD Mortgage Calculators
TD Bank’s mortgage calculators are designed to help you estimate your mortgage payments and make informed decisions about your mortgage. With our calculators, you can:
- Estimate your monthly mortgage payment based on your loan amount, interest rate, and amortization period
- Compare different mortgage rates and terms to find the best option for you
- Calculate your mortgage insurance premiums and other costs associated with your mortgage
Estimate Your Mortgage Payment
To estimate your mortgage payment, you’ll need to provide some basic information about your mortgage, including:
- Loan amount
- Interest rate
- Amortization period
- Property taxes
- Insurance
Once you’ve entered this information, our calculator will provide you with an estimate of your monthly mortgage payment. You can also use our calculator to compare different mortgage rates and terms to find the best option for you.
Why should you use Unrate for your TD mortgage?
Borrowers should consider using a mortgage broker like Unrate for their mortgage because Unrate can secure the same rates offered directly through a TD branch while providing additional value by shopping around for comparable or more favourable options. Unlike dealing exclusively with TD bank for your mortgage, brokers have access to a wide range of lenders and mortgage products, allowing them to find a solution tailored to the borrower’s specific financial needs and goals. This flexibility ensures borrowers have the opportunity to secure not only competitive rates but also terms and features that may better suit their situation, all while saving time and effort in the process. Additionally, mortgage protection insurance can safeguard against unforeseen circumstances such as death or critical illness, ensuring the mortgage is paid off and easing financial burdens on family members.
Use the TD Mortgage Calculator to estimate your monthly payments, compare rates, and find the best mortgage option tailored to your financial needs.
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