TD Mortgage Rates Guide for Homebuyers

TD offers a range of mortgage rates for homebuyers, including fixed and variable rates.

The bank's fixed rates can provide stability for homeowners who want predictable monthly payments.

TD's variable rates, on the other hand, offer flexibility and potential for lower interest rates.

TD's mortgage rates are competitive, with rates starting as low as 2.45% for a 5-year fixed mortgage term.

For example, a $200,000 mortgage with a 2.45% interest rate would result in monthly payments of approximately $978.

TD mortgage rates are influenced by the Bank of Canada's overnight lending rate, which is currently identical for all Big Six banks.

The prime rate at all Big Six banks is currently identical, but TD has its own prime mortgage rate, which is currently 5.6%.

Variable mortgage rates will continue decreasing each time the Bank of Canada lowers its overnight rate.

Fixed mortgage rates aren’t expected to dip any further in late 2024 or early 2025, but variable mortgage rates will continue to decrease.

You can view TD mortgage rates through our rates comparison tool, which will always provide you with the most up-to-date published TD rates.

Here are some historical TD mortgage rates for comparison:

The Bank of Canada's ongoing battle with inflation has led to significant increases in TD mortgage rates, particularly in the first quarter of 2023.

You have the option to choose between a fixed or variable mortgage rate when getting a mortgage from TD Bank. A fixed rate provides stability, while a variable rate can offer flexibility and potential savings on interest.

A variable 5 Year Open Mortgage from TD Bank allows you to increase your payments at any time, which can help save money on interest. However, your interest rate will fluctuate if the TD mortgage prime rate changes.

You can lock in your quoted rate for a specific length of time with a mortgage rate hold, similar to a guarantee. TD Bank has a rate hold of 120 days.

Some factors that can affect your TD mortgage rate include the type of transaction, occupancy of the property, and down payment amount. The type of transaction can be purchase, transfer, or refinance.

APR is a more accurate indication of what a mortgage might cost, including any additional fees the lender may charge.

The type of transaction, occupancy of the property, and down payment amount can affect your TD mortgage rate.

A mortgage broker is a licensed professional who helps you connect with lenders and find the best mortgage offer based on your financial situation and goals.

To get a mortgage from TD Bank, you can contact the bank directly or speak to a TD Bank mortgage advisor.

Here are some key terms to keep in mind when comparing mortgage rates:

TD Canada Trust is Canada's second-largest bank by market capitalization, with over 22 million customers worldwide.

Posted rates are a bank's publicly advertised mortgage rates, and they're often higher than its special rates. This is because posted rates are intended to be negotiated down during mortgage discussions.

Large lenders like TD often provide two sets of current mortgage rates: posted rates and special, or discounted, rates. This means you can potentially save money by looking beyond the posted rate.

The posted rate is meant to make borrowers feel like they're getting a great deal if they negotiate it down. If you don't negotiate, the bank can charge the full posted rate and make more money.

Open vs closed mortgages can be a bit confusing, but essentially, it comes down to cost. Open mortgages tend to come with much higher interest rates.

With an open mortgage, you have the flexibility to pay your mortgage in full at any time without penalty. In fact, the TD 1 year open mortgage allows you to make full or partial prepayments on any date without charge.

On the other hand, a closed mortgage will impose annual limits on how much you can prepay your mortgage. This can be a drawback for some people who want to pay off their mortgage quickly.

The TD 1 year open mortgage gives you the flexibility to convert to a closed mortgage with a lower interest rate at any time without charge. This can be a good option if you're not sure if you'll be able to make large payments right away.

A mortgage rate hold is when your lender locks in your quoted rate for a specific length of time, essentially guaranteeing that rate if you qualify for it. TD has a rate hold of 120 days.

Some lenders offer rate holds, while others may not, so it's essential to check with your lender to see if this option is available to you.

You can choose from a variety of mortgage options to suit your needs. One option is the TD 1 year open mortgage, which allows you to make full or partial prepayments on any date without charge.

With an open mortgage, you have the flexibility to make changes to your mortgage at any time. This can be a great option if you expect your financial situation to change in the near future.

For those who want to learn more about the home buying process, The Ultimate Perch Guide to Buying a Home is a valuable resource. It breaks down the entire process step-by-step, providing a clear understanding of what to expect.

A fixed mortgage rate is a great option for those who want predictable monthly payments. With a fixed mortgage rate, your interest rate remains the same for the duration of your mortgage term.

If you lock in a fixed rate, you can budget around a stable monthly payment for years at a time. Even if mortgage rates rise or fall during your term, the rate attached to your mortgage will not change.

TD's most popular mortgage product is the 5-year fixed, which offers payment stability due to its predictable monthly payments. Many borrowers prefer fixed rates for this very reason.

If you're looking for flexibility, TD also offers a 1-year fixed open mortgage, which allows you to repay the principal at any time without penalty. This option comes with a higher rate, typically around 150 basis points more than TD's other fixed rates.

If fixed rates fall during your mortgage term, you can break your mortgage contract and refinance at a lower rate. However, doing so can trigger steep mortgage prepayment penalties.

The 5 year closed mortgage option offers a low variable rate that changes with the TD mortgage prime rate. This means your payments will stay the same, but the interest rate will fluctuate.

You'll have the ability to lock in your interest rate by converting to a fixed rate mortgage at any time. This can provide stability and predictability in your mortgage payments.

With a closed mortgage, you cannot prepay, renegotiate or refinance before maturity, with some exceptions. This can be beneficial if you plan to stay in your home for the long term and don't expect your financial situation to change.

You can use an amortization calculator to project how each future payment will be split between paying interest and paying down the loan principal. This can help you understand the true cost of your mortgage and make informed decisions about your finances.

The term you select must be at a minimum the lesser of three years or the remaining period of the original term. This ensures you're not locked into a long-term mortgage that doesn't suit your needs.

The 5 Year Open mortgage option is a great choice for those who want flexibility in their mortgage payments. You can increase your payments by any amount at any time, which can save you money on interest.

With the TD Variable 5 Year open Mortgage, your interest rate will fluctuate when the TD mortgage prime rate changes. This means you'll need to keep an eye on interest rate changes to make the most of this option.

You can lock in your interest rate by converting to a fixed rate mortgage at any time, and your regular payments will stay the same. This gives you the best of both worlds: flexibility and predictability.

If you're unsure how long you'd like a mortgage contract to last, you can also consider a convertible mortgage. TD offers a six-month, closed convertible mortgage that can be extended to a longer term at any time.

To create a more accurate home buying budget, you'll want to estimate your closing costs, which are the one-time, upfront expenses you'll pay before receiving the keys.

These costs can add up quickly, so it's essential to understand what they are and how much you'll need to pay. Closing costs typically range from 1.5% to 4% of the purchase price of your home.

One way to get a more accurate estimate is to use a Canada Closing Costs Calculator, which can help you create a more accurate home buying budget.

You'll need to start by getting pre-approved for a mortgage, which involves providing financial information to a lender.

The Ultimate Perch Guide to Buying a Home breaks down the entire home buying process step-by-step, making it easier to navigate.

Researching different types of mortgages is crucial, as it can save you thousands of dollars in interest payments over the life of the loan.

The Ultimate Perch Guide to Buying a Home provides an in-depth look at mortgage options, helping you make an informed decision.

It's essential to consider factors like credit score, income, and debt when applying for a mortgage.

The home buying process can be complex, but with the right guidance, you'll be well on your way to finding your dream home.

Home equity loans can be a great way to tap into your home's value, but they come with some caveats. TD Mortgage rates for home equity loans are generally higher than those for first mortgages.

You can borrow up to 80% of your home's value with a home equity loan. This means if your home is worth $200,000, you can borrow up to $160,000.

Home equity loans often have variable interest rates, which can change over time. This means your monthly payments may increase if the interest rate goes up.

In the case of TD Mortgage, their home equity loan interest rates are tied to the prime rate, which can fluctuate. This means your interest rate may change if the prime rate changes.

Home equity loans typically have a repayment period of 5-15 years. This can give you some flexibility in terms of how long you have to pay back the loan.

A credit score of 680 or higher will help you get approved for a mortgage at most Canadian lenders, giving you a better shot at being offered the best mortgage rate.

Before applying for a mortgage, check your credit score and see if there are any financial habits you can tweak to improve it.

If your credit score is below 680, you can still apply for a mortgage with a B lender, but you might not have as many options.

Paying down debt, especially from credit cards, personal loans, or lines of credit, can help lenders see you as a lower risk, which could lead to a better mortgage rate.

Any debt you're carrying can make lenders question your ability to afford a mortgage payment, so it's a good idea to tackle those debts before applying for a mortgage.

Don't accept the first rate offer you're presented with. Negotiating is a must during the mortgage process, and it can make a significant difference in your monthly mortgage payment.

A few minutes of negotiating can save you about $50 every month, as shown in the example of a $400,000 mortgage at 5% interest, where the monthly payment would be $2,326, and at 4.8% interest, it would be $2,281.

To get the best TD mortgage rate, you should compare mortgage rates from different lenders. TD Canada Trust is another great option for Canadians, but you can also shop around to find the one that suits you best.

Here are some options to consider:

In addition to negotiating and comparing rates, you should also consider the details of the mortgage, such as prepayment privileges and portability.

Fixed mortgage rates aren't expected to dip any further in late 2024 or early 2025.

You're unlikely to find a 5% rate on shorter fixed-rate terms, but it might be available for three- and five-year fixed-rate mortgages.

As of January 2025, 5% would be significantly higher than what many banks and brokerages are offering on these terms.

Variable mortgage rates will continue decreasing each time the Bank of Canada lowers its overnight rate.

A mortgage broker can offer you a wider array of options, including deals from multiple lender partners, unlike a bank's mortgage advisors.

They can field offers from B lenders and private lenders, in addition to some Big Six banks.

A mortgage broker's commission is only earned when a mortgage is finalized, so it's in their best interest to negotiate a mortgage you can afford to sign.

Bank employees with revenue targets, however, may not feel quite as motivated to cut you a deal.

TD actually has two prime rates borrowers should take note of: its typical prime rate and a mortgage prime rate. TD’s prime rate is 5.45% and its mortgage prime rate is 5.6%.

You can negotiate your mortgage rate at TD. Even if you’re only able to reduce the cost of your mortgage by a little, the money you save can be put toward a better use.

TD may not offer you the lowest rate possible when you first apply for a mortgage.

We've got a few tools up our sleeve to help you navigate the world of TD mortgage rates. Our Perch Pathfinder is a great place to start, providing a comprehensive overview of your mortgage options.

We also offer a range of calculators to help you crunch the numbers. For example, our Mortgage Calculator can give you an idea of your monthly payments, while our Mortgage Affordability Calculator can help you determine how much you can afford to borrow.

If you're considering refinancing your mortgage, our Home Renovation Refinancing Calculator can help you understand the costs involved. Alternatively, our Rent vs Buy Calculator can help you decide whether renting or buying a home is the better option for you.

Here are some of our calculators organized by category:

Our calculators are designed to be user-friendly and easy to understand, so you can get a clear picture of your mortgage options.