Toronto-Dominion (TD) bank remains one of Canada’s biggest banks and one of the world’s biggest banks. It is also one of the country’s biggest mortgage providers, providing a large variety of products through its mortgage specialists in different branches in Canada.
TD bank’s mortgage rates, although limited to a few states, are competitive compared to other big banks, with suitable offers for construction loans and medical professionals, among others.
In this review, we’ll take you through all you need to know about TD mortgage, including the rates, the pros and cons, and how to get a TD mortgage if you decide to get one.
Disclaimer: Rates and product offerings are always changing so this article might not reflect the current market situation. Please contact your financial advisor before making any financial decisions.
TD Mortgage Rates
There are three different types of rates adopted by TD and the other six big banks in Canada, viz. posted rates, discretionary rates, and special offer rates.
The posted rates are updated on the TD website every day. Still, most people do not pay them as these are exaggerated and non-discounted and are primarily used to compute rate discounts and to ascertain prepayment sanctions.
Discretionary rates are usually the best mortgage rates and are restricted to only qualified borrowers. They usually have to involve some form of negotiation with the bank.
The special rates are what make TD different from other banks. They are time-limited and are only available on exclusive plans. They are made available by TD now and then.
TD offers a healthy range of general mortgage products, including fixed and adjustable rates that run for 15 or 30-year terms, as well as convertible, open and cashback mortgages, and HELOCs.
TD provides various options for purchasing mortgages or taking lender credits to stabilize interest rates and closing costs. Because fees increase as interest rates decrease and vice versa, borrowers can make decisions to adjust simple expenses and lifetime cost of interest to conform to their budgets.
The fixed-rate loan is the most common type of mortgage anywhere, and TD offers a 5-year fixed mortgage and a 5-year variable mortgage. They offer fixed-payment variable rates, which allows you to pay the same amount monthly, even with an increase in the prime rate. This means that as the rates increase, you get to pay down less principal as only the interest part of the payment increases. The interest part of the payment also decreases as the rate increases.
TD offers a 120-day rate hold, a 15% lump sum, as well as 100% payment increase prepayment features on most of its mortgage plans. Prepaying more than the set fee, however, attracts a penalty. You also incur a discharge/assignment fee if you pay out a closed TD mortgage before it matures.
As with most big banks, the rates offered by TD depend on a standard 25-year amortization. 30-year plans are also available on uninsured mortgages at a 0.0001% rate premium. Available rate of payment options includes weekly, bi-weekly, semi-monthly, and monthly.
Asides from the normal fixed and variable rate mortgage plans, there are also special plans to cater to your special needs.
How to Get a TD Mortgage
There are a few ways to get a TD mortgage if you think it’s the best deal for you. You can purchase TD mortgages via TD bank branches, mortgage specialists, call centres, or the mortgage broker channel.
To qualify for a TD mortgage, you need a minimum FICO credit score of 620 and a maximum debt-to-ratio income ratio of 41%. However, there is an exception for FHA loans where you can qualify with a credit score of 580.
To confirm that you qualify for a loan with TD, you can go through the pre-approval process. This helps you to get rapid feedback. It is done by submitting important personal information and allowing TD to run a credit check. The pre-approval process takes as little as 5 to 10 minutes.
You can also check if you qualify for a loan by applying online, over the phone, or in person. If you get stuck in the process, you can always reach out to a TD mortgage specialist to assist you in the application. It would be best if you had on hand your past and present employment history, personal information, and your social security number before you begin the process.
Using a TD Mortgage Specialist
After you get approval, a TD mortgage specialist will assist you with further steps. He/she will help sort out the details of your loan depending on whether it’s a fixed or variable rate term, open or close, and the payment intervals. TD allows you to make weekly, bi-weekly, semi-monthly, or monthly payments.
It is important to note that the mortgage specialists only attend to new customers and not existing ones whose mortgages are up for renewals. Also, these specialists possess the ability to offer you a lower rate at the expense of part of their commission. This is a vital piece of information that you can use when negotiating your rates.
The TD pre-approval process is a bit complex compared to other banks as it usually involves a physical meeting. You should have and be ready to give out certain information like employment information, existing assets, and liabilities, as well as financial history. The process can be started online, but you’ll still need to speak with bank staff.
How to Get the Best TD Mortgage Rate
You can negotiate TD mortgage rates just like all other rates. It is not a smart move to accept the first-rate any bank offers you. Before negotiating, it’s wise to compare rates from other banks for the features and conditions you’re interested in. you should understand that the bank representatives always want to offer their services. You can use that to your advantage as they’ll be willing to reduce their rate to secure your patronage.
You can always employ the services of another TD banker if the current one refuses to change their position as the rates quoted by all bank reps are not the same. If you cannot find a suitable offer, you can decide to transfer your mortgage to a new lender, giving them a deadline to get back to you with a better offer.
Some of the benefits of getting a mortgage from TD to include:
The rates offered by TD are competitive relative to other banks. You can also negotiate on a case-by-case basis, and you’re at an advantage if you have a substantial amount of business with the bank or if it’s a huge mortgage.
There is that sense of security when you do business with one of the country’s most reputable financial institutions. TD ensures that there are controls put in place to protect its clientele. There are also great reviews from customers who have used the TD fixed and variable rate mortgage plans.
Being one of Canada’s biggest banks, TD bank has more than 1000 branches in different locations across the country. This makes it easy to set up a meeting with a bank representative irrespective of your location in the country.
As a Big 6 bank, there is a wide range of other products offered by TD Bank, which includes investment products, additional bank accounts, and other secured loans and insurance.
Special rates: TD offers discounted interest rates on some of its popular mortgage plans.
You receive cashback when you make new purchases, switches, or refinancing.
TD mortgage specialists are always ready to meet you at convenient times at your chosen location. This is handy, especially for those who prefer to meet face-to-face. You can also explore the option of operating your mortgage from the comfort of your home as the majority of products offered by TD can easily be accessed online.
Some of the disadvantages that come with the TD mortgage include:
TD mortgages are not available in every state in Canada. This means that you cannot access it unless you’re in any of its location areas.
Compared to the smaller banks, the mortgage rates offered by TD are expensive. This is also true for its special rates, which compare poorly with other non-bank lenders.
Higher fixed penalties: If you break your TD mortgage before time, you’re required to pay a prepayment charge known as an Interest Rate Differential (IRD) penalty. These fees are high for the big banks as they are based on the bank’s posted rates.
Restrictive mortgage insurance
All big banks can’t move mortgage life insurance to a new lender when you want to switch. You have to purchase new mortgage insurance if you want to switch lenders for rate savings. This means that there is a chance that your premiums will increase, nullifying part of your rate savings. Also, mortgage specialists may want to push creditor insurance, which may be a bad choice for you.
It is important to note that the TD mortgage specialist’s job is to sell you the product. They are not required to show you better products offered by other lenders. There is a need to consider when trying to buy directly from a bank as their offer may not be in your best interest.
When trying to get a mortgage, you’re only offered the features that come with a standard TD mortgage. While these features are decent in TD, you may need to look elsewhere if you desire other unique features or greater flexibility.
Tips to Successfully Manage a Mortgage
It is a difficult task to incorporate your mortgage loan into your life, and you may need to employ a financial advisor’s services that can help make it less difficult.
Mortgages are essential and need to be handled with the appropriate significance it deserves. Together with other major loans, it should be the first thing you take care of at the end of every month, as ignoring it may lead to adverse effects that’ll greatly affect your finance in the long run.
If you want to be matched to a financial advisor that’ll handle your financial needs, you can use the SmartAsset matching tool, which will help you get paired with up to 3 advisors close to you. You’ll only need to respond to a few questions about what you need in a financial advisor.
TD bank remains one of Canada’s biggest financial institutions, and given their history of trust and security, and it is only natural that it comes to mind when you want to get a mortgage. However, it is still necessary for you to compare their services and mortgage rates with other lenders to get the best value for what you want.
New buyers will have it easier to find a TD mortgage that suits them given the plethora of mortgage plans available. If you are eligible for one of their special mortgage plans, it is well worth giving it a try. However, because it is not available in every state in the country, it may not be easy to tell apart their various services.
Where can I get a TD mortgage calculator?
There is a TD mortgage calculator to help you find ways to save money and match your payments to your lifestyle, determining which plan is best for you. You can check out a TD mortgage calculator here.
How long does it take for a TD mortgage to be approved?
Your mortgage application will take about 3 business days to get approved. You will be given a conditional decision within 24 hours of handing in your application. Thereafter, you’ll receive a call to review the loan conditions, documentation, and the next steps before you’re finally provided with a loan estimate of your closing costs.
How do I contact a TD mortgage specialist?
You can reach out to a TD mortgage specialist, book an appointment, or have a specialist call you through the TD website.