TD penalty calculator
TD Canada Trust mortgage penalty calculator
Short answer: TD charges the higher of 3 months’ interest or IRD using TD’s posted rate for a similar mortgage minus your discount. Variable: 3 months’ interest. This calculator uses TD’s own posted rates (read November 2, 2026; from the MITEY lender-rate dataset) to price your mortgage and shows whether breaking pays before your term ends.
Estimate what it would cost to break a TD fixed mortgage, using TD’s own posted rates (November 2, 2026) and the penalty rule TD publishes. Then see whether breaking pays and how waiting cuts the cost.
TD Canada Trust · estimated cost to break today
$11,799
IRD applies
TD: greater of 3 months’ interest or the IRD against its posted rate for the closest term (2-yr posted), less your discount.
Moving to 5.29% would save about $6,314 in interest over the 21 months left, so you’d be $5,485 behind after the penalty. Waiting for renewal, or porting, is likely cheaper.
Break-even new rate: 4.60%. Below that, breaking pays before your current term would have ended. Ignores legal, appraisal and discharge fees. For a full refinance break-even with fees, see Revalued.ca.
Waiting cuts the penalty
If posted rates stay where they are, waiting 6 months brings the estimate to $6,994; at maturity it’s $0. Early renewal at TD: TD says start 120 days before maturity (renew online through EasyWeb or the app).
Three ways to pay less
- Prepay first. Using this year’s privilege first lowers the base the penalty is charged on (15% lump sum a year and payment increases up to 100%, once per calendar year.)
- Port instead of breaking. Port a fixed-rate mortgage (rate, balance, term and amortization) with no prepayment charge, on an approved new application; no window stated.
- Blend and extend. FCAC describes early renewal at a blended rate as a way to avoid a full penalty. Ask TD for a quote.
TD’s own penalty page ↗ · always get the bank’s written payout figure.
The same mortgage at each big bank
Same balance, rate, discount and time left, priced with each bank’s own posted table (Nov 2, 2026) and the formula it publishes. This shows how much the bank’s penalty rule and posted table matter.
| Bank | Estimated penalty | 3 months’ | Compares with |
|---|---|---|---|
| RBC | $8,951 | $7,080 | 2-yr posted 5.74% |
| TD | $11,799 | $7,080 | 2-yr posted 5.39% |
| National Bank | $13,011 | $7,952 | 1- and 2-yr rates, interpolated for 21 months 5.30% |
| Scotiabank | $13,020 | $7,080 | 2-yr posted 5.24% |
| CIBC | $13,020 | $7,952 | 2-yr posted 5.24% |
| BMO | $15,461 | $7,080 | 2-yr posted 4.94% |
Estimates use simple interest over the months left (as in FCAC’s example); RBC and Scotiabank say they use a present-value basis, which lowers the real figure somewhat. For a term over five years broken after year five, the Interest Act caps the charge at 3 months’ interest, and the analyzer applies that. Today’s month is taken from your device; rates are as published on November 2, 2026.
TD’s rule, in its own words
- Closed fixed: the higher of three months of interest or the IRD amount.
- 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”.
- Closed variable: three months’ worth of interest; no IRD.
TD posted rates used in the calculation
| Term | Posted rate |
|---|---|
| 1-year | 5.69% |
| 2-year | 5.39% |
| 3-year | 6.15% |
| 4-year | 5.99% |
| 5-year | 6.14% |
| 6-year | 6.29% |
| 7-year | 6.40% |
| 10-year | 6.80% |
Online estimates are a starting point. Ask TD for a written payout statement before you sign anything with another lender, or try TD’s own calculator.
Frequently asked questions
How does TD calculate its mortgage prepayment penalty?
Higher of 3 months’ interest or IRD using TD’s posted rate for a similar mortgage minus your discount. Variable: 3 months’ interest. See the TD profile for the bank’s exact wording and source.
Which TD posted rate is used?
The posted rate for the term closest to the time left in your term. TD’s posted fixed rates on November 2, 2026: 1-year 5.69%, 2-year 5.39%, 3-year 6.15%, 4-year 5.99%, 5-year 6.14%, 6-year 6.29%, 7-year 6.40%, 10-year 6.80%.
How can I lower a TD penalty?
Use your prepayment privilege first (15% lump sum a year and payment increases up to 100%, once per calendar year.), ask about porting (port a fixed-rate mortgage (rate, balance, term and amortization) with no prepayment charge, on an approved new application; no window stated.), or wait: td says start 120 days before maturity (renew online through easyweb or the app).
Sources
- Mortgage rates — TD Canada Trust, checked Nov 2, 2026
- Mortgage prepayment calculator — TD Canada Trust, checked Oct 31, 2026
- Reduce or avoid prepayment penalties — FCAC, checked Oct 31, 2026
Keep exploring
Other banks: RBC · Scotiabank · BMO · CIBC · National Bank
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.
