TD prime rate
TD’s prime rate was lowered to 5.45% on December 12, 2024.
TD’s prime rate is the basis for its variable-rate lending products, like mortgages, lines of credit and some credit cards. When the Bank of Canada adjusts its overnight rate, TD’s prime rate increases or decreases by the same amount, affecting the cost of borrowing for these products.
TD is unique in that it also has a prime mortgage rate, which it applies to variable-rate mortgage products. TD’s current prime mortgage rate is 5.6%.
Mortgage rates at TD’s competitors
Click on a bank’s name to see a full list of its fixed and variable mortgage rates, including any current discounted rates it might be offering.
Rates updated: September 30, 2024
Bank |
3-Yr Fixed Rate |
5-Yr Fixed Rate |
5-Yr Variable Rate (Closed) |
5-Yr Variable Rate (Open) |
|---|---|---|---|---|
| 6.54% | 6.49% | 6.45% | 8.15% | |
| 6.99% | 6.84% | 6.45% | 9.75% | |
| 6.54% | 6.44% | 6.45% | N/A | |
| 6.50% | 6.39% | 6.45% | 9.75% | |
| 6.54% | 6.49% | 6.90% | 9.65% | |
| 6.94% | 6.79% | 6.60% | 7.60% |
Posted rates for closed mortgages with amortization under 25 years. Data source: Canada's major banks
TD at a glance
Toronto Dominion Bank, known as TD or TD Bank, has roots that go back to 1855, when The Bank of Toronto was first incorporated. A merger with The Dominion Bank in 1955 helped create the TD Bank Canadians are familiar with today.
TD is the second largest of Canada’s Big Six banks and a major player in the country’s mortgage market. In the second quarter of 2023, TD’s mortgage portfolio was almost $248 billion.
TD mortgage products
In addition to providing traditional mortgage products, including fixed- and variable-rate loans that may be structured as either open or closed, TD also offers:
- Home equity lines of credit.
- Mortgages for second homes and investment properties.
- Mortgage refinances.
- Mortgage renewals.
TD mortgages: things to consider
Posted rates vs. special rates
Large lenders like TD often provide two sets of current mortgage rates: posted rates and special, or discounted, rates.
TD posted mortgage rates
TD’s posted rates are the pre-discounted mortgage rates the bank makes publicly available. Posted rates can be much higher than discounted rates, with the expectation that borrowers will negotiate them down.
There are various theories around why this is the case at major lenders. Some lending experts believe it’s to make borrowers feel a sense of satisfaction at getting a better deal, others wonder if a higher posted rate allows banks to charge stiffer penalties if a person breaks their mortgage contract.
If you’re offered a posted rate when you first walk into a TD branch, consider it the beginning of a negotiation — and a great reason to compare offers from other lenders.
TD special rates
Special rates are TD’s posted rates that have already been discounted. These might be limited time offers or the rates the bank offers its mortgage broker partners. Under most circumstances, a special rate will be more in line with the rate you’re actually offered.
Even if you’re offered a special mortgage rate at TD, don’t be afraid to try and negotiate a lower one.
Fixed vs. variable mortgage rates
When you get a mortgage from a lender like TD, you’ll have to make an important choice between a fixed or variable mortgage rate.
Fixed mortgage rates
With a fixed-rate mortgage, your interest rate will remain the same for the duration of your mortgage term. If TD offers you a 5.25% five-year fixed mortgage rate in 2023, for example, your rate won’t change until it’s time to renew your mortgage in 2028.
A fixed mortgage interest rate allows you to budget around a predictable monthly mortgage payment for years at a time. But if fixed rates fall during your mortgage term, the only way to take advantage is by breaking your mortgage contract and refinancing at a lower rate. Doing so can trigger steep mortgage prepayment penalties.
Variable mortgage rates
If you opt for a variable rate on your TD mortgage, the rate could rise or fall many times during your term. When it rises, more of your monthly mortgage payment will go toward interest; when it falls, more will go toward the principal.
Variable mortgage rates have generally been lower than fixed rates. But in times of high inflation, when variable rates are driven upward by increases to lenders’ prime rates, variable rates can put unexpected pressure on your finances.
From March 2022 to July 2023, for example, homeowners with variable-rate mortgages saw their rates increase 475 basis points. That means a borrower who secured a variable rate of 2.25% in January of 2022 would be paying 7% in July 2023. That’s not a common occurrence, but it highlights the risk of taking out a variable-rate mortgage during times of economic uncertainty.
Open vs. closed mortgages
Another consideration when getting a mortgage at TD is whether to choose an open or closed mortgage.
With an open mortgage, you can increase your mortgage payments or even pay your mortgage in full at any time without penalty. A closed mortgage will impose annual limits on how much you can prepay your mortgage.
Choosing between open and closed mortgages is often a matter of cost. Open mortgages tend to come with much higher interest rates.
Convertible mortgages
If you’re unsure how long you’d like a mortgage contract to last, you can also consider a convertible mortgage. TD offers a six-month, closed convertible mortgage that can be extended to a longer term at any time.
A convertible mortgage can be a helpful option if you expect mortgage rates to fall in the near future. If rates decline to a level you’re satisfied with, you can lock in for several years and pay less in interest.
Rate vs. APR
When investigating TD’s mortgage rates or comparing them to rates from other lenders, it’s best to use the annual percentage rate (APR) provided rather than the interest rate itself.
APR includes any other fees that might be added to the cost of your mortgage, and gives you a more accurate figure with which to calculate your potential mortgage costs.
Applying for a mortgage online at TD
TD offers online mortgage pre-approvals, but we had no success getting past the first few steps. You might want to make use of the bank’s in-person mortgage services instead.
Here’s how to start the process online. We hope you have more luck than we did.
Go to the TD Bank home page, locate the “Products” tab and click on “Mortgages”.
On the next page, scroll down until you see the row of icons. Click on either “Buy my first home” or “Buy my next property”.
Scroll down and click on “Mortgage pre-approval process”.
Agree to the basic eligibility criteria.
Choose whether you have a predetermined amount you’d like to borrow. Then enter the information requested and agree to TD’s terms of use.
That’s as far as we could get. Essentially, it took us five minutes to be directed to a contact information page.
How to get the best mortgage rate at TD
As one of Canada’s federally regulated A lenders, TD follows the country’s strict lending guidelines. That means qualifying for the best mortgage rates at TD might require a little effort on your part, including:
- Raising your credit score. A high credit score tells lenders that you pay your debts on time. A low credit score, on the other hand, might mark you as more of a credit risk and result in you being offered a higher interest rate. If your credit score is quite low, you may not be approved for a mortgage at TD at all. Instead, you might have to apply with one of Canada’s many B lenders.
- Making a larger down payment. If you can make a significant down payment, one that goes well beyond Canada’s minimum down payment guidelines, lenders might see that you prioritize home ownership — but they’ll definitely see that they can loan you less money. Both interpretations mean less risk for the lender, which could mean a lower mortgage rate for you.
- Lowering your debt service ratios. If your debt service ratios are high, it signals to lenders that too much of your income is already going toward paying down debt. That’s risky for lenders, and the more risk you present as a borrower, the higher the rate you’ll be offered.
- Shopping around. TD may not offer you the best mortgage rate. Taking a look at the rates other lenders are charging is one way to find out whosewho’s offer is the right fit for your financial situation.
- Negotiating: Don’t be afraid to ask your lender if they can improve on the rate they’ve offered you. If they stand firm, let them know that you’re going to see what other lenders are offering before making a final decision.
Frequently asked questions about TD mortgage rates
TD actually has two prime rates borrowers should take note of: its typical prime rate and a mortgage prime rate. TD’s prime rate is 5.45% and its mortgage prime rate is 5.6%.
You can — and should — negotiate your mortgage rate at TD. When you first apply for a mortgage, TD may not offer you the lowest rate possible, so it’s always advisable to ask for a lower one. Even if you’re only able to reduce the cost of your mortgage by a little, the money you save can be put toward a better use.
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