TD fixed-rate mortgages
With TD Canada Trust's fixed-rate mortgages, you don't have to worry about fluctuations in interest rates. The amount you pay in principal and interest will stay locked in for the remainder of your mortgage term. TD's fixed-rate closed mortgages range from 1 year to 10-year terms.
TD also offers a 1-year fixed rate open term mortgage. Open term mortgages are a great option if you plan on paying off your mortgage within the next year.
TD is also one of the few big banks to publically advertise a high ratio mortgage rate on their 5-year fixed rate closed term mortgage. This interest rate is better than their conventional 5 year fixed closed rate but is only available to customers who put less than 20% down payment on their home purchase and have default insurance on their mortgages.
TD variable-rate mortgages
TD's variable-rate mortgages are available in either 5 year closed or 5-year open terms. If TD's prime lending rates increase during your variable rate term, you'll have to pay higher interest charges. Likewise, if interest rates go down during the term, you'll incur lower interest charges, and more of your mortgage payment will go towards paying down the principal.
If you have a variable rate mortgage, you'll also have the option to lock in your interest rate at any time by converting it to a fixed-rate mortgage. This option is only allowed if the new fixed-rate term selected is the lesser of three years or the remaining term on the original variable rate mortgage.
TD convertible mortgages
TD Canada Trust also provides a 6-month convertible fixed-rate mortgage. You'll receive a fixed rate over 6 months until it's time for renewal, at which time you can decide if you want to renew for another 6 months or switch mortgages. This convertible mortgage is a good option if you don't want to lock into a longer-term fixed-rate mortgage yet, and would rather keep your short-term options open.
TD mortgage prepayments
Making additional payments towards your mortgage is referred to as making prepayments. Closed term mortgages have limitations in how much prepayments you can make towards paying down your mortgage balance. Open term mortgages, on the other hand, have no prepayment limitations.
TD allows you to make a lump-sum prepayment of up to 15% of your original mortgage principal amount, once per year, on all closed term and convertible mortgages.
If you make prepayments of more than 15% of your original mortgage principal, in any given year, TD will charge you a prepayment penalty.
TD Canada Trust also gives you the flexibility to increase your mortgage payment once per year. With all of TD's closed mortgages (fixed and variable rate), you can increase your monthly payment by up to 100%, effectively allowing you to double it once a year.
TD Home Equity FlexLine
With TD Canada Trust's Home Equity FlexLine, you can use the equity in your home to borrow up to 80% of your home's value. The Home Equity FlexLine can be used in a variety of ways to help you meet your financial needs.
One way of using the Home Equity FlexLine is by leveraging it to use your home as collateral to secure a revolving line of credit. Up to 65% of the value of your home can be used as a line of credit. When you withdraw from the line of credit, you can pay back the principal whenever you'd like, as long as you make the minimum monthly interest payments.
You can also use your Home Equity FlexLine to borrow funds on a term basis. When you're applying for the TD Home Equity FlexLine, you can access up to 80% of the value of your home in the form of a fixed or variable rate, closed or open term loan. The loan is paid back in scheduled payments of principal and interest.
How you use your TD Home Equity FlexLine is up to you. You could even have a revolving line of credit portion and a loan term portion. As long as you have a minimum of 20% equity in your home and you're in good credit standing, you can apply for the Home Equity FlexLine.
Getting pre-approved for a mortgage gives you peace of mind knowing that you can shop around for a home and be able to finance your purchase once you've agreed on a price with a seller.
You can get pre-approved for a mortgage with TD Canada Trust, using their online platform in as little as five minutes. You can also sit down with a TD mortgage specialist who can guide you through the pre-approval process in person.
There is no impact to your credit score when you apply for mortgage pre-approval with TD. Getting pre-approved for a mortgage means that your quoted interest rate, the term length, and the mortgage amount will be honoured for 120 days following your pre-approval.
Your pre-approval for a mortgage is also dependant on your financial situation, not changing after getting pre-approved. If there are changes to your income, credit history, or other financial assets, your mortgage offer may change as well.
TD Mortgage Specialist
A TD mortgage specialist can help you along your mortgage application process. They can also help you refinance or renew your mortgage if you're an existing TD Canada Trust mortgage client. You can schedule a meeting with a TD mortgage specialist at a TD branch or over the phone. If you'd rather have a mortgage advisor meet you in person, at your home, or office, you can request a visit from a TD mobile mortgage advisor.
Renew your TD mortgage
When you reach the end of your mortgage term, and you'd like to renew your mortgage with TD, you can easily do so online by logging into your TD Canada Trust account.
You can start the renewal process on your mortgage 120 days before your mortgage term comes to maturity. When you renew online, you'll automatically receive the lowest posted TD mortgage rate for the mortgage type and term you select. However, it's always best to consider other mortgage options when times comes for renewal. It's also a great time to contact a TD mortgage specialist to talk about possibly getting a more favourable rate on your mortgage renewal.
What you'll need to apply for a TD mortgage
When you apply for a mortgage with TD Canada Trust, you'll need to have some information on hand as well as supporting documents. Some of these items include:
- Your current and previous addresses
- Your current and past employer information
- Proof of income (pay stubs, employment letter, bank statements showing direct employer deposits)
- If you are self-employed, you'll need the last two years of your tax notice of assessments
- The value of all your current assets (real estate, vehicles, investment accounts). Bring in supporting documentation if available
- Recent credit card, mortgage, and lines of credit statements
- The estimated value of the home you'd like to purchase along with the down payment amount you're planning on putting down
- The estimated costs of owning the home you plan on purchasing (i.e., property taxes, heating costs, condo fees)
- If you have a co-applicant for the mortgage, bring in their financial information as well
Before you apply for a mortgage, it's also useful to know how much you can afford to borrow. TD has a tool you can use to see how much you can borrow. MapleMortgage.ca also has a mortgage affordability calculator you can use to estimate your borrowing capacity.
About TD Canada Trust
TD Canada Trust is one of Canada's big five banks. Founded in 1855, and based in Toronto, Ontario, they have over 1,100 branches, 2,600 ATMs and over 11 million customers in Canada. TD also has extensive banking operations in the U.S, serving more than 6 million U.S based customers.