Big-bank profile · The Toronto-Dominion Bank
TD Canada Trust mortgages: rates, prepayment, penalties and HELOC
Short answer: TD’s 5-year fixed special was 5.29% (posted 6.14%) on November 2, 2026. Closed mortgages allow lump sums of 15% a year. Breaking a fixed term costs the higher of 3 months’ interest or an IRD against its posted rate for the closest term, less your discount.
TD offers closed fixed terms from six months to ten years, a 5-year variable whose payment stays the same, open terms, and the TD Home Equity FlexLine. Its prepayment privileges are generous: 15% a year and up to double the payment.
Bank pages checked November 2, 2026 · Independent guide, not affiliated with TD.
Mortgage products
- Terms listed: 6-month convertible, 1-year open, and 1, 2, 3, 4, 5, 6, 7 and 10-year fixed closed, plus a 5-year fixed closed high-ratio and a 5-year variable closed. [TD Canada Trust, checked Nov 2, 2026]
- Variable rate: your principal-and-interest payment stays the same for the term while the TD Mortgage Prime Rate moves; if the payment no longer covers interest you must adjust payments, prepay or pay off the balance. [TD Canada Trust, checked Oct 31, 2026]
- All TD mortgages are available as conventional or high-ratio, depending on the down payment. [TD Canada Trust, checked Oct 31, 2026]
Posted and special rates
| Term | Rate | Type |
|---|---|---|
| 5-year fixed (closed) | 6.14% | Posted |
| 5-year fixed (closed) | 5.39% | Special / advertised |
| 3-year fixed (closed) | 6.15% | Posted |
| 3-year fixed (closed) | 5.24% | Special / advertised |
| 1-year fixed (closed) | 5.69% | Posted |
| 5-year variable, Prime − 0.31% | 4.54% | Special / advertised |
TD Mortgage Prime Rate was shown as 4.85%; TD’s variable mortgages price off this rate, not the general TD Prime Rate. [TD Canada Trust, checked Nov 2, 2026]
Posted rates are the bank’s list rates; most borrowers are offered a discount from them. The posted rate still matters after you sign, because the big banks use it in the IRD penalty. Read posted vs special rates, and score any quote on IsThisAGoodRate.ca.
Prepayment privileges
- Lump sum: up to 15% of the original principal once a year, without charge. [TD Canada Trust, checked Oct 31, 2026]
- Payment increase: regular payments can be increased by up to 100% over the term, once per calendar year, without charge. [TD Canada Trust, checked Oct 31, 2026]
- Open mortgages: full or partial prepayments on any date without charge; full prepayment is subject to an administration fee by year of discharge. [TD Canada Trust, checked Oct 31, 2026]
Prepayment penalty
- Closed fixed: the higher of three months of interest or the IRD amount. [TD Canada Trust, checked Oct 31, 2026]
- IRD: based on the difference between the principal you owe and what you would owe “using the posted interest rate for a similar mortgage, minus any rate discount you received”. [TD Canada Trust, checked Oct 31, 2026]
- Closed variable: three months’ worth of interest; no IRD. [TD Canada Trust, checked Oct 31, 2026]
TD penalty calculator (uses TD’s posted rates) · TD’s own penalty page ↗
Worked example: what breaking a TD mortgage would cost
A $500,000 5-year fixed at 5.29%, 25-year amortization, signed when TD’s posted 5-year rate was 6.89% (a 1.60-point discount). Priced with TD’s own posted table (November 2, 2026) and the rule it publishes, the cost to break falls like this as the term runs down:
| Months left | Balance | TD compares with | Rate after discount | 3 months’ interest | Estimated penalty |
|---|---|---|---|---|---|
| 54 | $495,082 | 5-yr posted | 4.54% | $6,547 | $16,709 |
| 42 | $484,851 | 4-yr posted | 4.39% | $6,412 | $15,273 |
| 30 | $474,072 | 3-yr posted | 4.55% | $6,270 | $8,770 |
| 18 | $462,715 | 2-yr posted | 3.79% | $6,119 | $10,411 |
| 6 | $450,750 | 1-yr posted | 4.09% | $5,961 | $5,961 |
With 30 months left, TD would charge about $8,770, number 2 of six from cheapest for this mortgage (RBC $7,585, CIBC $19,555). If TD’s posted rates fell a point before you broke, it would rise to $20,622. Using the largest lump-sum privilege TD states (15% of the original amount) first ($75,000) would bring it to $7,383.
An estimate from this site’s engine, simple interest over the months left; TD’s written payout figure governs. Price your own TD mortgage.
Portability
- TD says porting moves “your principal amount, interest rate, remaining term and amortization period” from your current house to your new one, without a prepayment charge. [TD Canada Trust, checked Nov 3, 2026]
- Its standard charge terms (Ontario, s.5.07) make it conditional on a new mortgage application that TD approves; TD states no time window on the pages we read. [TD Canada Trust, checked Nov 3, 2026]
HELOC and readvanceable: TD Home Equity FlexLine
- A Revolving Portion (variable, based on TD Prime; interest-only minimum payment) and optional Term Portions that work like mortgages, with fixed or variable rates. [TD Canada Trust, checked Oct 31, 2026]
- Access up to 80% of your home’s value if you set up a Term Portion; paying down a Term Portion can free up credit in the Revolving Portion without reapplying. [TD Canada Trust, checked Oct 31, 2026]
- Closed Term Portions allow a lump sum of up to 15% of the original Term Portion amount each year. [TD Canada Trust, checked Oct 31, 2026]
Renewal
- TD’s renewal page: “Start 120 days before your maturity date”, and notes lenders may let you renew 120 days (4 months) before maturity without a prepayment charge. [TD Canada Trust, checked Oct 31, 2026]
Other features worth knowing
- High-ratio special rate eligibility (per the rates page footnote): less than 20% down and a property under $1,500,000. [TD Canada Trust, checked Nov 2, 2026]
TD’s 15% lump sum and up-to-double payment increases are among the most flexible here. Note the separate TD Mortgage Prime Rate (4.85% when we checked) that its variable mortgages use. TD describes porting a fixed-rate mortgage with no prepayment charge, but states no time window, so ask for one before you list your home.
Official TD pages
- TD mortgage rates
- TD mortgage prepayment calculator
- TD Home Equity FlexLine
- Institution profile (regulator, deposit insurance): TD Canada Trust on CanadianBanks.ca
TD mortgage questions
How much can I prepay on a TD mortgage?
TD’s product page describes a lump sum of up to 15% of the original principal once a year and payment increases of up to 100% over the term, once per calendar year, without charge.
Does TD’s variable payment change when rates move?
TD describes its variable mortgage payment as staying the same for the term, with more or less going to principal as the TD Mortgage Prime Rate changes, unless the payment no longer covers the interest.
Sources
- Mortgage rates — TD Canada Trust, checked Nov 2, 2026
- Mortgage prepayment calculator — TD Canada Trust, checked Oct 31, 2026
- TD mortgages and rates (products) — TD Canada Trust, checked Oct 31, 2026
- What happens if you break your mortgage (porting) — TD Canada Trust, checked Nov 3, 2026
- Standard charge terms (Ontario), s.5.07 If You Move (Portability) — TD Canada Trust, checked Nov 3, 2026
- TD Home Equity FlexLine — TD Canada Trust, checked Oct 31, 2026
- Mortgage renewal process — TD Canada Trust, checked Oct 31, 2026
Educational information only, not financial, legal or tax advice. BankMortgages.ca is independent and is not affiliated with, endorsed by or paid by any bank named on this site. Bank terms change: confirm every rate and term with the lender and the official sources linked on each page before you act. Read the full disclaimer.
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Last checked November 2, 2026. Spot something out of date? Tell us at hello@mitey.ca.
