TD Bank Canada mortgage rates, products, and honest review — is TD the right lender for you?
| Product | TD Posted Rate | TD Best Rate (approx.) | Notes |
|---|---|---|---|
| 1-Year Fixed | 6.99% | 5.14% | Posted vs negotiated gap typical |
| 2-Year Fixed | 6.84% | 4.79% | |
| 3-Year Fixed | 6.59% | 4.64% | |
| 4-Year Fixed | 6.59% | 4.54% | |
| 5-Year Fixed | 6.49% | 4.39% | Most popular; negotiate hard |
| Variable (5-yr) | Prime + 0.00% | Prime – 0.70% | Prime ~4.95% |
| HELOC | Prime + 0.50% | Prime + 0.50% | ~5.45% |
TD posted rates are rarely what anyone pays. Always negotiate. TD's special offer rates are typically 0.50–1.50% below posted.
TD's most popular product. Rate locked for the term (1–5 years), with prepayment privileges of 15% lump sum annually and payment increases up to 100%. The catch: breaking a fixed mortgage at TD uses their complex IRD calculation based on TD's posted rates (not their discounted rates), which can create very large penalties.
The TD Variable Rate Closed Mortgage adjusts with TD's prime rate. When the Bank of Canada changes its overnight rate, TD's prime follows (typically within days). The penalty to break a variable-rate TD mortgage is simply 3 months' interest — much more predictable and usually much cheaper than the fixed IRD penalty.
The TD Home Equity FlexLine combines a revolving HELOC and a fixed-rate portion. It operates at Prime + 0.50% for the line of credit portion. The maximum HELOC is 65% of home value; total mortgage + HELOC cannot exceed 80% LTV for uninsured properties.
The core tradeoff: TD offers the convenience of a full-service bank relationship, but monoline lenders accessed through a broker typically offer rates 0.10–0.50% lower and use simpler, cheaper penalty calculations. On a $700,000 mortgage over 5 years, even a 0.25% rate difference saves roughly $9,000 in interest. And if you need to break your mortgage early (life changes — divorce, relocation, financial hardship), a monoline's 3-month interest penalty is often $5,000–$15,000 cheaper than TD's IRD penalty.
TD makes sense when: you value branch access and in-person service, you want to consolidate all banking with one institution, you're getting a significant relationship discount due to large deposits, or your situation is complex enough that TD's flexibility (on construction mortgages, investment properties, etc.) outweighs the rate premium.
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Get KOHO Free — Code 45ET55JSYALast updated: March 2026. Rates approximate — always verify directly with TD. Not financial advice.