TD Mortgage Rates 2025 (Indicative)
TD Mortgage Products Overview
TD Canada Trust is Canada's largest retail bank by branch network and one of the top mortgage lenders in the country. TD offers a wide range of mortgage products including fixed and variable rate mortgages, HELOCs through its Home Equity FlexLine product, and specialized products for newcomers to Canada and self-employed borrowers.
TD Fixed Rate Mortgages
TD offers fixed rate terms from 6 months to 10 years. Their standard 5-year fixed closed mortgage is among the most popular in Canada. TD's fixed mortgages typically allow 15% annual lump-sum prepayments and 15% payment increases without penalty — considered standard prepayment privileges in the industry.
TD Variable Rate Mortgages
TD's variable rate mortgages are priced at TD Prime Rate plus or minus a spread. TD uses an "adjustable-rate mortgage" structure where payments change with the prime rate (as opposed to some lenders that keep payments fixed and adjust the amortization period). This means you always know your exact payoff timeline.
TD Home Equity FlexLine (HELOC)
TD's Home Equity FlexLine is a readvanceable mortgage that combines a traditional mortgage with a home equity line of credit. As you pay down your mortgage principal, that amount becomes available in the HELOC portion. This product allows borrowers to borrow, repay, and re-borrow against their equity for any purpose.
TD Mortgage Prepayment Penalties
One important consideration with TD: like other Big 6 banks, TD uses a posted rate-based IRD calculation for fixed-rate mortgage prepayment penalties. This can result in significantly higher penalties than monoline lenders when breaking a fixed mortgage mid-term. Borrowers should factor this into their decision, especially if they anticipate the possibility of selling or refinancing before term end.
TD vs. Mortgage Broker
| Factor | TD Direct | Through a Broker |
|---|---|---|
| Rate Access | TD rates only | 50+ lenders including TD |
| Existing Client Benefit | Possible loyalty pricing | No relationship benefit |
| Prepayment Penalties | Bank IRD method (higher) | Monoline IRD (lower) available |
| Flexibility for Complex Files | TD criteria only | Can match best-fit lender |
Who TD Mortgage Is Best For
TD mortgages may make sense for: existing TD banking clients who can leverage relationship pricing, borrowers who value the convenience of having all banking in one place, first-time buyers who find the TD brand reassuring, and those who plan to keep the mortgage for the full term without breaking it.
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