TD Canada Trust contains a variety of different mortgage rates that can be beneficial to customers seeking these services for their next home purchase.
Mortgage Rates of TD Canada Trust
TD frequently competes with RBC for the status of the largest bank in Canada (by market capitalization). It now has over 10 million customers throughout the nation.
TD is also one of Canada’s largest suppliers of mortgages. It offers mortgages mostly through its mortgage consultants and subsidiaries, However, TD is also a big player in the broker network, with nearly 10% of the broker lenders market share. The mortgage rates of the bank are generally fairly affordable (for a big bank). Due to its sheer scale, its price deals are made possible by ultra-low financing costs.
Posted TD Rates
TD provides three types of rates along with the other big 6 banks: posted rates, special offer rates, and discretionary rates. Absolutely no one pays the reported rates of TD. They are high, non-discounted rates that are mostly used as a point of reference for measuring rate discounts and used as a tool for assessing penalties for prepayment.
Usually, special offer prices are limited-time deals that TD provides from time to time.
Generally, discretionary rates are the best bank mortgage rates. These are intended for well-qualified borrowers and typically require a certain amount of compromise with the bank
TD offers a range of regular mortgage products similar to those provided by other major banks. These include the most common fixed and variable terms, convertible, open and cashback mortgages, and HELOCs.
The most common term is TD’s 5-year fixed mortgage, followed by the5-year variable. TD is one of the lenders offering fixed-payment variable rates, which means that your monthly mortgage payment does not typically change— even if the prime rate increases. Alternatively, as rates rise, the payment’s interest element also increases as you pay less principal and vice versa.
Most of TD’s mortgage rates provide a standard 120-day rate hold and flexible 15% lump sum and 100% advance payment options. Keep in mind that it will require a penalty fee to prepay more than the approved amount. In most jurisdictions, termination of a closed TD loan before maturity often requires a discharge/assignment fee (e.g. $260 for Ontario and $75 in B.C.).
TD’s rates are based, like most big banks, on a typical 25-year amortization. Thirty-year amortizations on uninsured mortgages are available typically at a rate premium of 10 basis points.
The following payment rate options are available to TD mortgage clients: monthly, rapid semi-monthly, semi-monthly, rapid bi-weekly, bi-weekly, rapid weekly and weekly payments.
TD Home Equity FlexLine
TD provides its Home Equity FlexLine for those who need to dig into their home equity. It is one of the most popular products of the bank and has been a major source of growth for the Canadian sector of TD.
Essentially, FlexLine is an advanceable mortgage This enables homeowners to access up to 80% of their home’s value. Up to 65 percent of the value of your property can be borrowed through the revolving portion which ensures that your available credit rises when you pay down the balance (up to your credit limit). Repayment is made at your own tempo — as minimal as interest-only or up to the outstanding balance as a whole.
You may also choose to place a portion of some of your outstanding balance in a closed-term. This part of the FlexLine is paid back at a fixed or variable interest rate with a closed or open prepayment term through regular payments. Homeowners can access a full 80% of the equity of their home using the term portion
Readvanceable mortgages such as the FlexLine are used for a variety of reasons, like funds for home improvements/renovations, company finance, education costs, or investments. The FlexLine also makes a convenient emergency fund because the funds are always available 24/7.
The FlexLine is only currently available through TD mortgage specialists and branches, but there is speculation that TD will make it available through mortgage brokers in the future.
How Does One Get A TD Mortgage?
If you visit a TD Bank, they sell mortgages through most of their branches, specialists, call centres, and through the mortgage broker channel. If you are coming up to your renewal period, you will have to call the bank to come to a compromise on your renewal rate.
Using A TD Mortgage Specialist
Many mortgages from TD are sold by mortgage specialists from the bank, who are basically commissioned, representatives. They have the ability, like a mortgage broker, to “buy down” your interest rate. It ensures that they can relinquish some of their fees to give you a lower rate. Remember this during the negotiations on your price.
- A lot of mortgage specialists will only choose to serve new bank customers and not people who already own a home and have a mortgage up for renewal.
- If you want to consult a mortgage specialist, send us an email.
Mortgage Brokers At TD
TD is one of only two Big 6 banks involved in the mortgage broker channel It presently has a market share of about 10 percent of the broker market. TD branch reps and mortgage specialists can generally offer brokers comparable rates, but brokers often buy down the rates a little bit more. So if you are interested in a TD mortgage it pays to shop the bank against a successful TD-approved broker.
Pre-Approvals At TD
If you are looking for a pre-approval, the process over at TD is a little more complicated in comparison to some of the other banks out there. It usually involves a face-to-face meeting and you can get the process started online, but you will still have to speak to someone at the bank about it.
Getting The Best TD Mortgage Rate
Like almost all rates, it is possible to negotiate the mortgage rates of TD. The first-rate offered by TD or any other bank should never be accepted by mortgage shoppers.
Be sure to compare mortgage rates with other lenders for other comparable terms, features, and conditions in order to be in a better position to negotiate.
Remember that those bank specialists will want your business and in most cases, are willing to come down on their rates in order to secure that business. (That means, of course, that you are well qualified.)
If you are sitting down with a broker that simply won’t budge, then just find another one. Bank reps at different places will all quote different rates and if nothing seems to work, then just tell them that you’re going to switch your mortgage to a new lender and tell them your deadline for getting back to you with their final offer.
Renewal Of A TD Mortgage
For those who are renewing a mortgage, the flexible pricing of most big banks is not provided to existing clients, at least not initially. Unfortunately, sometimes your allegiance is rewarded with the higher “unique” rates of the bank or even the posted rates of the bank in some rare instances.
Mortgage renewals should always be negotiated at a rate that you consider acceptable (and practical based on a preference for similar terms and characteristics). Be prepared to pay a little more to prevent the efforts of switching lenders. An important thing to keep in mind is to never leave the TD mortgage renewal until the very last minute. If you need to shop around and lock in a price, you should start the process at least 60-120 days in advance.
Pros Of Getting a Mortgage With TD
- Full service: A large advantage of doing business with a Big 6 bank is the access it provides you with a big range of products that they might have to offer you.
- Reputation: TD is known as one of the lenders with the best reputation in the country and has control set in place to protect its clients.
- Rate discretion: TD can negotiate on a case-by-case basis and can be more flexible with clients that have a large amount of business with the bank. This also applies to those who have a large mortgage.
- Branch access: There are over 1,150 branches across Canada and making an appointment to sit down with someone at one of the branches is as simple as can be.
- Convenience: People that like face-to-face meetings will like the fact that TD mortgage specialists would love to meet with you. You can also just manage your mortgage from home if you prefer to do it that way too.
Cons Of A Mortgage With TD
- Potentially higher rates: TD is not known for having the lowest mortgage rates in Canada, like its neighbouring banking giants. In comparison to the rates available through other monoline or non-bank lenders, even its “special rates” are not particularly competitive.
- Fixed penalties can be higher: breaking your TD mortgage early typically triggers an IRD (Interest Rate Differential) penalty for an advance payment. IRD fines paid by large banks are notoriously high because they are dependent on the rates posted by the bank.
- Less choice: TD Bank is selling only its own branded mortgages. This means you are restricted to standard TD mortgage features. In the case of TD, the price characteristics are fairly decent (e.g. keeping a rate hold of 120 days, 15 percent lump-sum payments, and rights to raise payments by 100 percent). But if you need more flexibility or other unique characteristics, you might need to look somewhere else.
- Limited Advice: Selling you a TD mortgage product is the responsibility of a TD mortgage professional. It is not in their interest to tell you, at least not in an objective and comprehensive way, what superior products may be available through other lenders. Keep this in mind when shopping directly from a bank and note that they may not always advise you with your best interest or needs in mind, unlike us here at the Spy.
- Restrictive mortgage insurance: In the case that you choose to switch TD’s mortgage life insurance cannot be transferred to a new lender. For all big bank mortgages, this is the norm. You will need to buy new mortgage insurance if you change lenders solely for rate savings. In that circumstance, be mindful that a portion of your rate savings may increase your premiums and potentially negate them. Also be informed that creditor life insurance is incentivized by bank mortgage specialists, which may not always be the best insurance choice. So be prepared for it if you get a hard sell.
TD Mortgage Calculators
TD offers a range of mortgage calculators, similar to its competitors, that allow you to calculate mortgage payments, mortgage payment features, mortgage affordability, prepaid fees, and down payment size.
One of the nice things that’s useful about the mortgage calculator with TD is that it tabulates the amortization and ending balances with prepayments. So, you can determine how much more you need to spend to meet your mortgage payment targets.
Another useful tool that TD has is a Mortgage Selector. Essentially, some simple information is entered and a term is suggested. When using this tool, remember that it calculates a suggested term without considering other lender’s choices or comparing rates.
TD’s Prime Rate
TD Bank mortgage rates and the other Big 6 banks set the prime rate benchmarks for the country together.
The prime rate changes when the overnight rate of the Bank of Canada is raised or lowered.
In general, the prime rate of TD is the same as the other Big 6 banks. TD is pricing its HELOCs with this rate
However, for mortgages, TD has a different “prime mortgage rate.” As of this writing, its prime mortgage is 15 bps higher than the rest of the megabanks. TD increased its mortgage prime rate independently of the Bank of Canada in November 2016 in what was a controversial move at the time. This arbitrary move has forced its current variable-rate borrowers to pay more than the other Big 6 banks.
Miscellaneous TD Statistics
- Mortgage portfolio: As of the last quarter of 2018, TD bank’s mortgage portfolio has more than $190.4 billion in residential loans.
- TD has 1,150 branches.
- All provinces in Canada are served and over 1,300 are served in America.
Check out TD fixed mortgage rates and TD variable mortgage rates here