Head to head · TD vs National Bank
TD vs National Bank mortgages: rates, prepayment, penalties and HELOCs compared
Short answer: National Bank advertises the lower 5-year fixed (5.14% vs 5.29%) as of November 2, 2026. On the same $480,000 mortgage broken 30 months early after rates fall a point, TD charges about $6,320 less. TD gives more lump-sum room (15% vs 10%). Neither wins everything, so get both quotes.
TD and National Bank compared on the terms that cost or save you money, from each bank’s own pages: which of the two fits which borrower. No ranking, no paid placement.
Bank pages checked November 2, 2026
National Bank: 5.14% vs 5.29%. Your offer can differ, so ask both.
TD (15% lump sum vs 10% a calendar year).
TD in our example: $13,365 vs $14,675 to break a new 5-year after 2 years if rates fall 1 point.
Similar: TD 120 days (TD’s suggested start); National Bank up to 4 months.
TD Home Equity FlexLine vs National Bank All-In-One: the limits and structure are in the HELOC row of the term sheet below.
TD for the bigger annual privileges; National Bank for the smoother penalty and a rate hold from 6 months out. Then take TD’s written offer to National Bank, or the other way round, and ask them to match it on the same term.
Term sheets side by side
| TD Canada Trust | National Bank | |
|---|---|---|
| 5-yr special / posted | 5.29% / 6.14% | 5.14% / 6.14% |
| Prime used | TD Mortgage Prime 4.85% | National Bank prime 4.70% |
| Prepayment | 15% lump sum a year and payment increases up to 100%, once per calendar year. | 10% of the principal a calendar year, plus an extra payment up to your regular payment on each payment date. |
| Fixed-rate penalty | Higher of 3 months’ interest or IRD using TD’s posted rate for a similar mortgage minus your discount. Variable: 3 months’ interest. | Higher of 3 months’ interest or 1 month’s interest (max $500) plus the interest differential. Variable: 3 months’ interest. |
| Portability | Port a fixed-rate mortgage (rate, balance, term and amortization) with no prepayment charge, on an approved new application; no window stated. | Rollover Mortgage: balance, rate and term move to a new National Bank mortgage for your next home, and the prepayment charge is recovered; no window stated. |
| HELOC | TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. | All-In-One: line of credit up to 65%, up to 80% with a mortgage; $7/month per account. |
| Early renewal | TD says start 120 days before maturity (renew online through EasyWeb or the app). | Renew up to 4 months early with no penalty; protect a rate from 6 months out. |
Posted and special rates by term
| Term | TD special | TD posted | National Bank special | National Bank posted |
|---|---|---|---|---|
| 1-year | — | 5.69% | 5.49% | 5.49% |
| 2-year | — | 5.39% | 5.19% | 5.24% |
| 3-year | 5.24% | 6.15% | 5.09% | 6.09% |
| 4-year | — | 5.99% | 5.09% | 6.05% |
| 5-year | 5.29% | 6.14% | 5.14% | 6.14% |
| 6-year | — | 6.29% | — | 6.40% |
| 7-year | — | 6.40% | 5.34% | 6.40% |
| 10-year | — | 6.80% | — | 6.80% |
Worked example: the same mortgage at TD and at National Bank
You owe $480,000 on a $500,000 5-year fixed at 5.29%, signed when the posted 5-year rate was 6.89% (a 1.60-point discount). There are 30 months left and you need to sell without porting. The payment, about $3,064.75 a month, is the same at either bank; what differs is the exit.
| TD | National Bank | |
|---|---|---|
| Compares with | 3-yr posted | 2- and 3-yr rates, interpolated for 30 months |
| Comparison rate after discount | 4.55% | 4.07% |
| 3 months’ interest | $6,348 | $8,268 |
| Penalty if you break now | $8,880 | $15,200 |
| Penalty if posted rates fall 1 point first | $20,880 | $27,200 |
| Most lump-sum room stated, on the original amount | $75,000 | $50,000 |
| Penalty after using this year’s lump sum first | $7,492 | $13,669 |
| Porting | Port a fixed-rate mortgage (rate, balance, term and amortization) with no prepayment charge, on an approved new application; no window stated. | Rollover Mortgage: balance, rate and term move to a new National Bank mortgage for your next home, and the prepayment charge is recovered; no window stated. |
Where TD and National Bank differ most
- Breaking the same mortgage after rates fall a point costs $6,320 more at National Bank ($27,200 vs $20,880): TD compares with its 3-yr posted rate and National Bank with its 2- and 3-yr rates, interpolated for 30 months rate.
- Which bank is cheaper to leave depends on when you leave: across the term the lead changes hands. The gap is widest with 30 months left: $8,770 at TD (3-yr posted) vs $15,018 at National Bank (2- and 3-yr rates, interpolated for 30 months).
- Variable mortgages price off different primes: TD Mortgage Prime 4.85% vs National Bank prime 4.70%. At the same spread that’s about $720 a year on $480,000.
TD for the bigger annual privileges; National Bank for the smoother penalty and a rate hold from 6 months out.
TD’s 15% lump sum is the larger privilege; National Bank’s 10% comes with an extra payment of up to your regular payment on each payment date. National Bank’s penalty interpolates between terms and adds a month’s interest up to $500, so it changes month by month; TD’s jumps when the similar term changes. National Bank lets you protect a rate from 6 months out and renew up to 4 months early.
Ask: Ask TD how long you have to port and National Bank how its Rollover Mortgage refunds the charge; neither states a time window.
When would breaking cost less at TD or at National Bank?
The same $500,000 mortgage, broken at five points in its 5-year term (balance paid down on schedule, today’s posted tables). Each bank’s comparison term changes at different months, so the gap opens and closes:
| Months left | TD penalty | National Bank penalty | TD compares with | National Bank compares with |
|---|---|---|---|---|
| 54 | $16,709 | $18,212 | 5-yr posted | 4- and 5-yr rates, interpolated for 54 months |
| 42 | $15,273 | $14,415 | 4-yr posted | 3- and 4-yr rates, interpolated for 42 months |
| 30 | $8,770 | $15,018 | 3-yr posted | 2- and 3-yr rates, interpolated for 30 months |
| 18 | $10,411 | $11,085 | 2-yr posted | 1- and 2-yr rates, interpolated for 18 months |
| 6 | $5,961 | $7,764 | 1-yr posted | 1-yr rate |
Who feels the difference between TD and National Bank?
The aggressive pre-payer: $75,000 a year at TD vs $50,000 at National Bank
Take a $500,000 5-year fixed at 5.29% at either bank and put the largest lump sum each bank states into it at every anniversary. At TD (15% lump sum) you’d owe $27,116 at renewal, paying $81,583 in interest over the five years; at National Bank (10% a calendar year) you’d owe $166,253 at renewal, paying $95,720. Without lump sums you’d owe $444,528. Kept up, TD’s room would clear the mortgage in about 5.8 years against 7.3 at National Bank. Most people won’t prepay this hard; if you will, this is the clause to choose on.
The variable-rate borrower: two different primes
TD prices its variables off TD Mortgage Prime (4.85%); National Bank off National Bank prime (4.70%). Their advertised 5-year variable rates are 4.54% and 4.35%, so on $480,000 the first year’s interest is roughly $21,792 vs $20,880, and the monthly payment over 25 years $2,678.91 vs $2,627.29. Compare the rate itself, not the spread: a smaller discount off a lower prime can still be the cheaper loan.
The mover who can’t port: TD or National Bank, month by month
Selling with 54 months left would cost $16,709 at TD and $18,212 at National Bank, so TD is the cheaper exit early in the term; with 6 months left it’s $5,961 against $7,764, and TD is cheaper. Waiting from 54 to 6 months left saves $10,748 at TD and $10,447 at National Bank. If you might sell mid-term, porting beats both: see the porting row in the term sheet above and ask each bank for its window in writing.
TD penalty calculator · National Bank penalty calculator · prices your own numbers.
A brand-new mortgage at each bank, broken after two years
A new 5-year fixed for $450,000 at each bank’s own 5-year special, discounted from its own posted rate, broken after 24 months. People usually break when rates have fallen, which is when the IRD bites, so we show both cases:
| TD | National Bank | |
|---|---|---|
| Starting rate (5-yr special) | 5.29% | 5.14% |
| Discount from posted | 0.85 pts | 1.00 pts |
| Comparison rate after discount | 5.30% | 5.09% |
| 3 months’ interest | $5,951 | $6,908 |
| Penalty, posted rates unchanged | $5,951 | $6,908 |
| Penalty, posted rates 1 point lower | $13,365 | $14,675 |
Uses each bank’s published rule (see methodology); balance kept at $450,000 for a like-for-like comparison. “—” means the bank publishes no 5-year fixed special to start from (Scotiabank posts none; its specials are variable). Price your own mortgage in the penalty analyzer.
Bring TD’s written offer to National Bank (or the other way round) and ask them to beat it on the same term. Then compare the penalty clause, because that’s where these two differ most.
TD vs National Bank: questions
Is TD or National Bank better for a mortgage?
Neither wins on everything. TD for the bigger annual privileges; National Bank for the smoother penalty and a rate hold from 6 months out. National Bank advertises the lower 5-year fixed (5.14% vs 5.29%) as of November 2, 2026. On the same $480,000 mortgage broken 30 months early after rates fall a point, TD charges about $6,320 less. TD gives more lump-sum room (15% vs 10%). Neither wins everything, so get both quotes.
How do TD and National Bank calculate prepayment penalties?
Both charge the greater of 3 months’ interest or an IRD on a closed fixed mortgage, and 3 months’ interest on a variable. On the same mortgage with 30 months left, TD compares with its 3-yr posted rate and National Bank with its 2- and 3-yr rates, interpolated for 30 months rate, giving $8,880 at TD and $15,200 at National Bank. Each bank’s wording is on its profile: TD, National Bank.
Is it cheaper to break a mortgage at TD or National Bank?
It depends on when. For the same $500,000 5-year fixed at 5.29% (posted 6.89% at signing), with 54 months left TD $16,709 vs National Bank $18,212; with 42 months left TD $15,273 vs National Bank $14,415; with 30 months left TD $8,770 vs National Bank $15,018; with 18 months left TD $10,411 vs National Bank $11,085; with 6 months left TD $5,961 vs National Bank $7,764. Your own figure depends on your rate, discount and balance: try the penalty analyzer.
Can I switch from TD to National Bank at renewal?
Yes. At maturity there is no prepayment penalty, and since November 21, 2024 a straight switch with the same amount and amortization no longer needs a new stress test. The new bank may cover legal and appraisal costs; your current bank may charge a discharge fee. See the renewal checklist.
Sources
- Mortgage rates — TD Canada Trust, checked Nov 2, 2026
- Mortgage rates — National Bank, checked Nov 2, 2026
- Mortgage prepayment calculator — TD Canada Trust, checked Oct 31, 2026
- Pay off your mortgage faster (prepayment and charges) — National Bank, checked Oct 31, 2026
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