Why use an independent mortgage calculator instead of TD's?
**An independent mortgage calculator gives you unbiased results with advanced features that TD's online calculator does not offer.** TD's built-in tool provides a basic monthly payment estimate, but it lacks interactive amortization charts, scenario comparison, extra payment modeling, and the ability to share your results via a URL.
When you search for "td mortgage calculator," you likely want to estimate payments at TD's current rates. This calculator lets you do exactly that while also comparing TD's rate against offers from other lenders side by side. Enter TD's discounted 5-year fixed rate (approximately 4.29%) in Scenario 1 and a competitor's rate in Scenario 2 to see the dollar difference over your full amortization.
TD's calculator does not show you how extra payments reduce your total interest cost or shorten your amortization. This tool models the impact of any additional monthly payment and displays the interest saved, the time saved, and a visual amortization chart showing the before-and-after comparison. For a TD borrower with 20% prepayment privileges, this feature helps you plan how to use those privileges effectively.
Another advantage of an independent tool: your results are not tied to a single lender's ecosystem. You can share the URL with your mortgage broker, co-borrower, or financial advisor. The link preserves all your inputs, so anyone who opens it sees the same numbers without re-entering anything.
What are TD's current mortgage rates?
**TD's posted 5-year fixed mortgage rate is approximately 6.09%, but most borrowers receive a discounted rate around 4.29% ([TD Mortgage Rates](https://www.td.com/ca/en/personal-banking/products/mortgages/mortgage-rates)).** The spread between the posted rate and the discounted rate is critical because TD uses the posted rate when calculating Interest Rate Differential (IRD) penalties for breaking a fixed-rate mortgage early.
TD offers fixed-rate terms from 6 months to 10 years. The most common choice is the 5-year fixed term, which balances rate stability against the risk of paying a large penalty if you break the mortgage early. Shorter terms (1 to 3 years) carry slightly higher rates but lower breakage penalties because less time remains on the contract.
For variable-rate mortgages, TD offers 3-year and 5-year terms. TD's variable rate is expressed as TD Prime plus or minus a spread. As of early 2026, TD Prime is 5.45%, and competitive variable-rate discounts bring the effective rate to approximately 4.00% to 4.50%. Unlike some lenders, TD uses an adjustable-rate structure where your payment amount changes when the prime rate changes.
TD also offers a hybrid option called the TD Fixed/Variable Combination Mortgage, which splits your mortgage into a fixed portion and a variable portion. This lets you hedge against rate movements while keeping some exposure to potential rate decreases. The calculator above can model each portion separately using the scenario comparison feature.
What are TD's prepayment privileges and how do they save you money?
**TD allows you to prepay up to 20% of the original mortgage principal as a lump sum each year, double up any regular payment, and increase your regular payment by up to 100% of the original amount ([TD Prepayment Options](https://www.td.com/ca/en/personal-banking/products/mortgages)).** These privileges apply to both fixed-rate and variable-rate closed mortgages at TD.
The 20% annual lump-sum privilege means that on a $400,000 original mortgage, you can pay an additional $80,000 per year without penalty. This privilege resets on each anniversary of your mortgage. Unused prepayment room does not carry over to the next year. If you receive a bonus, inheritance, or tax refund, applying it as a lump-sum payment can save thousands in interest.
The double-up payment option lets you pay up to twice your regular payment on any payment date. If your monthly payment is $2,500, you can pay up to $5,000 on any given month. The extra $2,500 goes entirely toward principal. Over a 5-year term, making just 12 double-up payments (one per year) on a $400,000 mortgage at 4.29% reduces your total interest by approximately $8,000 to $10,000.
The payment increase privilege lets you raise your regular payment by up to 100% above the original amount. If your original monthly payment is $2,500, you can increase it to as much as $5,000 per month on a permanent basis. This is different from the double-up option because the increase applies to every future payment, not just a single occurrence. Use the extra payment field in the calculator above to model this scenario and see the compounding impact on your amortization.
How does TD calculate mortgage penalties?
**TD's fixed-rate mortgage penalty is the greater of three months' interest or the Interest Rate Differential (IRD), and TD uses their posted rate (not your discounted rate) to calculate the IRD, which typically results in higher penalties than lenders who use the discount rate ([FCAC - Mortgage Penalties](https://www.canada.ca/en/financial-consumer-agency/services/mortgages/reduce-prepayment-penalties.html)).** This is one of the most important factors to understand before choosing TD.
The three months' interest penalty is straightforward: your outstanding balance multiplied by your contract rate, divided by 12, multiplied by 3. On a $350,000 balance at 4.29%, this equals approximately $3,753. For variable-rate mortgages at TD, the penalty is always three months' interest, which makes variable-rate penalties more predictable and generally lower.
The IRD penalty is where TD's method becomes expensive. TD compares your original posted rate (approximately 6.09%) against the current posted rate for the remaining term. If you have 3 years remaining and TD's current posted 3-year rate is 5.49%, the IRD spread is 6.09% minus 5.49% = 0.60%. On a $350,000 balance with 3 years remaining, the IRD penalty is $350,000 x 0.60% x 3 = $6,300. Because TD uses the posted rate (not your discounted rate of 4.29%), the IRD spread is significantly wider than it would be at lenders who use the actual contracted rate.
Monoline lenders and credit unions often calculate IRD using your actual discounted rate rather than a posted rate. On the same example, if the lender used the discounted rate of 4.29% versus a current 3-year rate of 3.69%, the IRD spread is only 0.60% and the penalty is similar. But at TD, the posted-rate method can produce penalties two to three times higher than the discount-rate method. If there is any chance you will break your mortgage before the term ends (job relocation, divorce, refinancing), this difference is worth thousands of dollars.
What is TD's Mortgage Rate Guarantee and when should you use it?
**TD's Mortgage Rate Guarantee locks in your approved mortgage rate for 120 days (four months), protecting you from rate increases between approval and closing ([TD Mortgage Rate Guarantee](https://www.td.com/ca/en/personal-banking/products/mortgages)).** If rates drop before closing, TD gives you the lower rate automatically. This 120-day hold is standard among the Big Five banks in Canada.
The rate hold is most valuable in a rising rate environment. If the Bank of Canada signals rate hikes, locking in a rate four months before your closing date means you pay today's rate even if rates increase by 0.25% to 0.50% before you take possession. On a $500,000 mortgage over 25 years, a 0.25% rate increase adds approximately $7,500 in total interest cost.
To get a TD rate hold, you need to complete a mortgage pre-approval with TD. The pre-approval involves a credit check, income verification, and an assessment of your borrowing capacity. Once approved, TD holds your rate for 120 days. If you find a property and close within that window, you get the held rate (or the current rate, if it is lower).
One limitation: the rate guarantee applies only to TD's rates at the time of your application. If a competitor offers a lower rate during the hold period, TD is not obligated to match it. You can still walk away from the pre-approval with no penalty (pre-approvals are not binding), but you would need to apply with the other lender from scratch. Use this calculator to compare TD's guaranteed rate against current competitor rates before making your decision.
Feature comparison: TD's calculator vs. this independent tool
**This calculator offers six features that TD's online mortgage calculator does not: interactive amortization charts, side-by-side scenario comparison, extra payment modeling, CMHC insurance auto-detection, shareable URL results, and payment frequency toggling between monthly, bi-weekly, and accelerated bi-weekly.** These features help you make a more informed decision before you walk into a TD branch.
TD's mortgage calculator provides a basic estimate: enter a home price, down payment, rate, and amortization, and it returns a monthly payment. It does not generate a visual amortization schedule showing how your principal and interest split changes over time. This calculator displays a year-by-year chart so you can see exactly when the principal portion of your payment overtakes the interest portion.
The scenario comparison feature lets you place two different rates side by side and see the total cost difference over the full amortization. This is particularly useful for comparing TD's 5-year fixed rate against their variable rate, or for comparing TD against a monoline lender's offer. The calculator shows the difference in monthly payment, total interest, and total cost for both scenarios.
CMHC insurance auto-detection calculates your insurance premium automatically when your down payment is below 20%. TD's calculator requires you to know whether insurance applies and to calculate the premium separately. This tool detects the premium tier based on your down payment percentage and adds it to your mortgage principal, giving you the true monthly payment from the start.
Worked example: calculating a mortgage payment at TD's current rates
**Step 1: Enter the home price.** You are purchasing a home for $600,000 and have been pre-approved by TD.
**Step 2: Set your down payment.** You have $60,000 saved (10% of the purchase price). Because this is less than 20%, CMHC mortgage insurance is required.
**Step 3: Calculate CMHC insurance.** Your mortgage before insurance is $540,000. At a 10% down payment (90% LTV), the CMHC premium rate is 3.10%. Premium: $540,000 x 3.10% = $16,740. Your total mortgage becomes $556,740.
**Step 4: Set the interest rate and amortization.** TD has offered you their discounted 5-year fixed rate of 4.29% with a 25-year amortization (300 months). Enter 4.29% in the calculator.
**Step 5: Calculate the monthly rate using semi-annual compounding.** Effective annual rate: (1 + 0.0429/2)^2 - 1 = 4.3360%. Monthly rate: (1.043360)^(1/12) - 1 = 0.3544%.
**Step 6: Calculate the monthly payment.** Payment = (0.003544 x $556,740) / (1 - (1.003544)^(-300)) = $3,024 per month. Over 25 years, you pay $907,233 total, of which $350,493 is interest.
**Step 7: Use scenario comparison.** Enter a competitor's rate (for example, 3.99% from a monoline lender) in Scenario 2. At 3.99% on the same mortgage, the monthly payment drops to $2,920, and total interest over 25 years is $319,357. The difference is $104 per month and $31,136 in total interest. This comparison helps you weigh TD's rate guarantee and branch service against the savings from a lower rate.
Frequently asked questions
What are TD's current mortgage rates?
**TD's posted 5-year fixed mortgage rate is approximately 6.09%, with discounted rates for qualified borrowers around 4.29%.** Variable rates are based on TD Prime (5.45%) plus or minus a spread, typically landing between 4.00% and 4.50%. TD offers fixed terms from 6 months to 10 years and variable terms of 3 and 5 years. Rates change frequently, so confirm with TD directly before applying.
How does TD calculate mortgage penalties?
**TD's fixed-rate penalty is the greater of three months' interest or the Interest Rate Differential (IRD), calculated using TD's posted rate rather than your discounted rate.** This method typically produces higher penalties than lenders who use the discount rate for IRD calculations. On a $350,000 balance with 3 years remaining, the IRD penalty at TD could be $6,000 to $15,000, compared to $2,000 to $5,000 at a lender using the discount method. Variable-rate penalties at TD are always three months' interest.
What prepayment options does TD offer?
**TD allows a 20% annual lump-sum prepayment of the original principal, doubling up any regular payment, and increasing your regular payment by up to 100%.** On a $400,000 original mortgage, you can prepay up to $80,000 per year without penalty. The double-up option lets you pay twice your regular payment on any payment date. These privileges reset annually on your mortgage anniversary date and do not carry over if unused.
Does TD offer a rate hold for mortgage pre-approvals?
**Yes. TD's Mortgage Rate Guarantee holds your approved rate for 120 days.** If rates drop before your closing date, TD gives you the lower rate automatically. The rate hold requires a completed pre-approval application with credit check and income verification. The pre-approval is not binding, so you can choose a different lender if you find a better offer during the hold period.
How much is a mortgage payment on a $600,000 home at TD's rate?
**With 10% down ($60,000) at TD's discounted 5-year fixed rate of 4.29% over 25 years, your monthly payment is approximately $3,024.** This includes the CMHC insurance premium of $16,740 added to the mortgage. With 20% down ($120,000) at the same rate, the payment drops to approximately $2,607 because no CMHC insurance is required and the principal is lower.
Is TD's mortgage calculator accurate?
**TD's calculator gives a reasonable basic estimate, but it lacks features needed for thorough planning.** It does not show amortization charts, does not let you compare two rates side by side, and does not model extra payment scenarios. It also does not auto-calculate CMHC insurance premiums. For a quick directional estimate, TD's tool works. For detailed planning with visual schedules and scenario analysis, an independent calculator provides more useful output.
Should I choose TD's fixed or variable rate?
**The choice depends on your risk tolerance and outlook on interest rates.** TD's fixed rate (approximately 4.29% discounted) locks in your payment for the full term. TD's variable rate (approximately 4.00% to 4.50%) adjusts with the prime rate, meaning your payment changes when the Bank of Canada moves rates. Historically, variable rates have saved borrowers money over full amortization periods, but with less payment predictability. If you break early, variable-rate penalties at TD (three months' interest) are significantly lower than fixed-rate penalties (IRD based on posted rates).
How does TD compare to monoline lenders?
**Monoline lenders typically offer rates 0.10% to 0.40% lower than TD and calculate penalties using the discount rate rather than the posted rate, resulting in significantly lower breakage costs.** TD's advantages include branch access across Canada, bundled banking discounts, the 120-day rate guarantee, and relationship pricing for existing customers. The trade-off is higher rates and substantially higher penalties. Use the scenario comparison feature in the calculator above to quantify the exact dollar difference for your specific mortgage amount and term.
Can I use this calculator for a TD mortgage renewal?
**Yes. Enter your remaining mortgage balance as the home price, set the down payment to $0 (or the equity you have), and input TD's renewal rate offer.** Then use Scenario 2 to enter a competing offer from another lender. At renewal, you can switch lenders without paying a penalty because your term has ended. Comparing renewal offers is one of the most effective ways to save on a mortgage, since many borrowers simply accept their bank's renewal letter without shopping around.
What happens if rates drop after I lock in with TD?
**If rates drop during your 120-day rate hold period, TD automatically gives you the lower rate at closing.** After your mortgage has funded and the term is active, falling rates do not change your fixed-rate payment. You would need to break the mortgage and refinance to access a lower rate, which triggers the IRD penalty. For variable-rate TD mortgages, your payment adjusts automatically when TD Prime changes, so you benefit from rate drops without refinancing.