Mortgages · Lender review
TD mortgage review
The best prepayment package of the Big 6 — 15% lump sums plus a 100% payment increase — attached to the two classic TD caveats: posted-minus-discount penalties stated verbatim on its own page, and collateral charge paper that makes you more expensive to leave.
Best for: Borrowers who’ll use the prepayment room and plan to stay through the term
Pros
- 15% annual lump sum + up to 100% payment increase — the strongest Big 6 combination
- 120-day rate hold that restarts if rates drop during the hold
- FlexLine readvanceable is a mature, full-featured product
- Cashback up to $5,100 on current offers (fund by Aug 31, 2026, TD chequing required)
- Fixed-rate ports carry no prepayment charge on the ported amount
Cons
- Posted-minus-discount IRD, in TD’s own words — the expensive break method
- Collateral charge-terms paper — switching lenders at renewal means discharge and re-registration costs
- Fixed-payment variable carries real trigger-rate dynamics — the 2022 lesson
The prepayment room — genuinely the best
TD’s flexible-payment page is unambiguous: 15% of original principal per year in lump sums, and the right to increase your scheduled payment by up to 100%. Doubling your payment roughly halves your amortization — no other Big 6 bank offers that much sanctioned acceleration. For disciplined prepayers, this single feature can outweigh a few basis points of rate.
The two TD caveats
First, the penalty: TD states the formula plainly — the IRD compares against the posted rate for a similar mortgage “minus any rate discount you received.” The discount add-back is the expensive mechanism; the deeper your negotiated discount, the bigger the exit charge when rates have fallen. Model it in the penalty calculator with the big-bank toggle on.
Second, the paper: TD publishes collateral charge-terms packages province by province — expect your mortgage to be registered as a collateral charge, which can’t simply be transferred to another lender at renewal. FCAC notes collateral charges are “more expensive to discharge”; budget legal costs into any future switch, or use the threat of them as negotiation leverage with TD itself.
The variable, and the rest
TD’s variable is the fixed-payment kind: when prime rises, your payment holds and more of it goes to interest — until the trigger rate, where unpaid interest starts growing the balance. TD documents this honestly on its own pages; borrowers who want payments that track rates should look at ARM-style lenders instead.
The FlexLine is the readvanceable flagship (revolving to 65% of value, term portion to 80%), the 120-day hold restarts if rates drop, and the current cashback — up to $5,100, tied to TD chequing with an August 31, 2026 funding deadline — is the richest standing big-bank offer on our table.
Frequently asked questions
How does TD calculate mortgage penalties?
Posted-rate IRD, verbatim from TD’s page: the comparison uses the posted rate for a similar mortgage “minus any rate discount you received” — the expensive method. Variable: three months’ interest (rate basis unstated). For a closed fixed mortgage the charge is the greater of three months' interest or the IRD; variables are typically three months' interest. Run your numbers in our penalty calculator, and remember only the lender's own payout statement is binding.
How much can I prepay at TD without a penalty?
Lump sums up to 15%/yr of the original principal per year, plus a payment increase of up to Up to 100%. Privileges reset annually and generally don't carry forward — and using them just before breaking a mortgage shrinks the balance the penalty is computed on.
Does TD offer a HELOC or readvanceable mortgage?
TD Home Equity FlexLine — revolving to 65%, term portion to 80%. HELOCs at federally regulated lenders are stress-tested like mortgages and capped at 65% of home value within an 80% total — the mechanics (and the retiree angle) are in our HELOC guide.
Is a mortgage from TD safe?
Borrowing carries no deposit-style risk — if a lender fails, your mortgage continues on its terms with a new owner; you never owe it back early. What matters is the contract: penalty method, prepayment room, and portability. That's exactly what this review scores.
The bottom line
If your plan is prepay-hard-and-stay, TD’s 15/100 room is the best reason to pick a big bank. If your plan involves flexibility to leave — mid-term or at renewal — the posted-rate penalty and collateral paper both price against you. Compare its live specials on the rate table.
See how TD prices today
Benchmarks and verified lender offers, refreshed from the source.
Educational review, not financial advice or a mortgage offer. Product facts verified at TD's own pages and disclosures on June 12, 2026; rates shown come from our daily pipeline (scraped or hand-verified at the lender, stamped per row) and change without notice. Penalty wording summarizes the lender's published method — the payout statement is the only binding figure.