TD Mortgage Penalty & Prepayment Calculator

TD mortgage penalty calculator

For a closed fixed mortgage, TD compares its three-month interest amount with its interest rate differential (IRD) and charges the higher amount. Closed variable mortgages generally use the interest amount; open mortgages have no prepayment charge.

TD’s own calculator accounts for the remaining term, rate discount and prepayment privileges. Use it for an estimate, then ask TD for a dated payout statement covering any discharge, assignment or reinvestment fees.

Renewing within 120 days of maturity? TD says a TD mortgage may be renewed in that window without a prepayment charge, so you may not need a penalty estimate at all.

Then check the exact figure with TD's own calculator or a dated payout statement before you act.

Is your TD Bank renewal offer too high?

Compare the written rate with dated context for the same term, rate type, insurance status and product conditions. A gap is a reason to investigate; an advertised rate does not establish that you qualify or that your lender's offer is unfair.

Have the balance, remaining amortization, scheduled payment and renewal deadline ready. Review prepayment privileges, penalties, portability, fees and any actual competing offer together.

Ask TD Bank to review your renewal rate

Adapt this request to the written offer you received:

I am reviewing my TD Bank mortgage renewal offer before signing. Please confirm the quoted rate, term, rate type, scheduled payment, remaining amortization, penalty wording, prepayment privileges, portability, fees and restrictions. Is another renewal option available for my file? Please send any revised offer and its expiry date in writing.

A review request does not guarantee a lower rate. Refer to a competing offer only if you actually have it, and compare its eligibility conditions, product terms and switching costs.

How to renew a TD mortgage — and whether you need to re-apply

TD says an ordinary TD Mortgage renewal does not require you to re-apply. Eligible customers can renew digitally by signing in to EasyWeb or the TD app, opening the Mortgage or Term Portion, selecting Renew Now, reviewing the available options, and accepting the renewal agreement.

TD says a mortgage may be renewed without a prepayment charge starting 120 days (four months) before maturity. Refinancing or requesting different borrowing is a separate process from an ordinary renewal and can involve a new application.

• Starting 120 days before maturity: TD says you may renew without a prepayment charge.
• Online: use EasyWeb or the TD app and select Renew Now when the option is available.
• Ordinary renewal: TD says there is no need to re-apply and no legal or property-valuation fee.
• Other options: TD also offers renewal by phone or through a mortgage specialist.

Confirm the options for your exact mortgage directly with TD before signing. Sources: TD digital renewal process · TD renewal tips · FCAC renewal statement rules

Switching lenders at TD renewal: maturity is different from breaking the term early

A lender switch completed at the contractual maturity date is different from breaking a closed mortgage before maturity. An early-break prepayment charge is tied to paying out the mortgage before the term ends; a transfer at maturity is not the same transaction.

Switching can still involve discharge or transfer charges, legal or notarial work, registration, appraisal, title-insurance, administration, qualification, documentation, and timing requirements. If a transfer would complete before maturity, confirm any prepayment charge and payout amount with TD before proceeding.

TD mortgage prepayment calculator and penalty: what to check

TD says its Mortgage Prepayment Calculator can estimate the charge for paying down more than your allowed prepayment privilege or paying out a mortgage before maturity. The calculator is an estimate; your mortgage agreement and TD's final payout calculation determine the actual amount.

• Closed fixed-rate mortgage: TD says the charge is generally the greater of three months of interest or an Interest Rate Differential (IRD) amount.
• Closed variable-rate mortgage: TD says the charge is generally three months of interest.
• Open mortgage: TD says you can prepay in part or in full without a prepayment charge.
• Closed mortgage lump sums: TD says you can generally prepay up to 15% of the original principal amount each year without a charge, subject to your agreement.

If you are close to renewal, timing matters too: TD says a TD mortgage may be renewed starting 120 days before maturity without a prepayment charge. Confirm the exact privilege and payout amount for your mortgage before acting. Sources: TD Mortgage Prepayment Calculator · TD prepayment-charge explanation

Does TD offer a bonus at mortgage renewal?

Do not assume a public TD mortgage cashback promotion applies to an ordinary same-lender renewal. TD's current public cashback terms describe qualifying new TD mortgage transactions, including specified purchases, transfers, refinances, or properties without another charge.

If a bonus matters to your decision, ask TD to confirm in writing whether your exact renewal transaction qualifies, what conditions apply, and whether accepting the promotion changes any rate, term, fee, portability, prepayment, or other mortgage terms.

What a TD Bank renewal offer does — and does not — prove

A renewal letter tells you what TD Bank is offering under the written terms shown. It does not, by itself, prove that the offer is fair, unfair, the lowest available rate, or the best overall mortgage for your circumstances.

Review the exact rate, term, fixed or variable structure, scheduled payment, remaining amortization, penalty wording, prepayment privileges, portability, fees, promotional conditions, cashback terms, collateral-charge terms, and other material restrictions together.

How to compare your TD Bank renewal rate

Start with the same term and product structure as the written offer. A public advertised rate for a different mortgage type, insurance status, transaction, lender channel, or borrower profile is not automatically a valid alternative.

If your TD Bank offer is a supported Canadian 3-year or 5-year fixed renewal, FairRate can place that written rate beside current dated comparison context and scheduled-payment information. It does not claim that a comparison rate is guaranteed or available to you.

Questions to ask TD Bank before signing

• What exact rate, term, and fixed or variable structure am I being offered?
• What scheduled payment and remaining amortization are being used?
• How is an early-break penalty calculated?
• What prepayment privileges and payment-increase options apply?
• Is the mortgage portable, and under what conditions?
• Are there fees, cashback terms, promotional conditions, collateral-charge terms, or other restrictions?
• When does the renewal offer expire?
• Can the lender provide the final material terms in writing before I decide?

Ask TD Bank whether another renewal option is available

You can ask the lender to explain the offer and whether another renewal option is available. Request the final rate, term, payment assumptions, penalty wording, prepayment privileges, portability, fees, and material restrictions in writing.

Do not claim that another lender has guaranteed you a lower rate unless you have an actual written offer. FairRate does not promise that TD Bank will improve an offer or that a public advertised rate is available to a particular borrower.

Comparing TD Bank with another lender at renewal

A lower headline rate can be attractive, but a same-lender renewal, straight lender switch, refinance, increased borrowing request, amortization change, borrower change, and other material changes can involve different qualification, documentation, fee, penalty, and timing requirements.

Before relying on an apparent rate difference, verify any discharge or transfer charges, appraisal, legal or notarial, title-insurance, registration, administration, promotional, and other possible costs or restrictions for the exact transaction.

Current FairRate Canada scope

FairRate Canada's benchmark-backed free checker and paid benchmark reports currently support Canadian 3-year and 5-year fixed renewal offers. A variable-rate or other-term offer should not be forced against those fixed-term references.

FairRate is not a lender, mortgage broker, mortgage agent, brokerage, law firm, underwriter, or financial advisor. It does not provide mortgage approval, guarantee another rate, or promise savings or a particular negotiation or switching outcome.