Updated November 2026 · Estima.ca research
TD Mortgage Rates — Terms, Discounts and What to Watch
TD Bank is one of Canada's largest residential lenders and offers a full menu of fixed and variable mortgages, including its distinctive collateral-charge registration. Knowing how TD prices its products and where its terms differ from the rest of the Big Six will save you money and prevent surprises at renewal.
TD's mortgage products at a glance
TD offers 6-month and 1 through 10-year fixed terms, 5-year variable, open and closed structures, and its readvanceable Home Equity FlexLine. The 5-year closed fixed is the most popular Canadian choice; TD's 5-year variable is quoted as prime minus a discount that varies with your loan-to-value ratio and credit profile.
The collateral-charge difference
TD registers most of its mortgages as collateral charges rather than the more common standard charges used elsewhere in Canada. A collateral charge lets TD lend you more later without a new legal registration, which is convenient — but it also makes switching to another lender at renewal more expensive because a new lender has to discharge the collateral charge and register a fresh one, costing roughly $500 to $1,500 in legal fees.
Most homeowners never notice this until renewal. If you value the flexibility to switch lenders every five years for the best rate, ask TD to register a standard charge before you sign. They can do it on request.
Prepayment privileges and penalty math
TD's closed mortgages allow 15% annual lump-sum prepayments and a 100% payment increase, which is competitive with the other Big Six but slightly less generous than the 20/20 that some monoline lenders offer. If you plan to make large lump-sum contributions or aggressively accelerate payments, model the difference before you sign.
TD's fixed-rate breakage penalty is calculated as the greater of three months' interest or an Interest Rate Differential using the posted rate at origination. Like the other Big Six, this can produce a penalty several times larger than what a monoline lender would charge on the same broken mortgage — worth knowing if there is any chance you sell or refinance before the term ends.
Negotiating a TD quote
TD mortgage specialists have discretion to discount the posted rate significantly. Come with a written competing quote — from a Big Six competitor or a mortgage broker — and expect the specialist to at least match the total cost. Bundling your chequing account, credit card or investments with TD is a legitimate lever for an additional discount, but only if you were already going to move those products.
Before signing, run the specific quote through Estima.ca's Canadian mortgage calculator to see monthly payment, total interest and any CMHC premium. Compare it against the sample rates from the other Big Six on our rates page — small differences compound significantly over 25 years.
FAQ
- What is TD's current 5-year fixed rate?
- TD's posted 5-year fixed rate is public on td.com, but the negotiated rate is typically 1.5 to 2 percentage points lower. Confirm your personal quote directly with a TD mortgage specialist — Estima.ca sample rates are for education only.
- Why is a TD mortgage a collateral charge?
- A collateral charge lets TD advance additional funds later without a new legal registration. The trade-off is that switching to a different lender at renewal costs a few hundred to a couple of thousand dollars in legal fees to discharge the collateral charge. Ask for a standard charge at origination if you want maximum switching flexibility.
- What are TD's mortgage prepayment options?
- TD's standard closed mortgage allows a 15% annual lump-sum prepayment and a 100% scheduled payment increase, plus one-time double-up privileges. The exact terms are in your mortgage agreement — confirm the specifics with your specialist before signing.