Clay Jarvis
Beth Buczynski
TD Mortgage at a glance
TD Bank is among Canada’s largest mortgage lenders. As a Big Six bank, it adheres to Canada’s strict mortgage qualification guidelines, which means less flexibility for borrowers with low credit scores or non-traditional income sources.
- Available in all Canadian provinces and territories.
- Publishes a modest selection of discounted mortgage rates.
- Provides residential mortgages, and renewal and refinance services.
- Offers a hybrid home equity line of credit, the TD Home Equity FlexLine.
- Open to financing co-borrowing scenarios.
- Fixed-rate mortgages.
- Variable-rate mortgages.
- Convertible mortgages.
- Open and closed mortgages.
- High-ratio mortgages.
- Home equity lines of credit.
- Mortgage renewals and refinances.
Pros
- With over 1,000 TD branches in Canada, getting face-to-face mortgage advice shouldn’t be difficult.
- Offers a variety of term lengths to help customize your fixed-rate mortgage.
- If you’re an existing TD customer, a pre-filled form can speed up the pre-approval process.
Cons
- No specific business-for-self or newcomer mortgage options.
- At certain points, TD’s mortgage prime rate has been higher than other lenders’ prime rates.
- Few options for those with lower credit scores
TD mortgage full review
Toronto Dominion Bank, more commonly known as TD Bank or TD, is one of Canada’s largest banks, and a major player in the country’s mortgage market. In the third quarter of 2023, TD’s Canadian residential mortgage portfolio was worth $256 billion.
TD is also one of the oldest banks in Canada, an amalgamation of The Bank of Toronto, founded in 1855, and The Dominion Bank, which was founded in 1869. After the two came together in 1954, TD Bank expanded its services to include mutual funds and credit cards and began a growth trajectory that continues today.
TD’s mortgage business is gargantuan, but its mortgage products are standard. It offers a decent selection of fixed-rate mortgage terms, and both open and closed variable-rate mortgages, but there’s nothing an experienced mortgage shopper would necessarily find unique or innovative.
For homeowners who may need access to further credit, TD offers the TD Home Equity FlexLine, a HELOC product that allows borrowers to access up to 80% of a home’s value.
Who is a TD mortgage best for?
A TD mortgage may be best suited for borrowers with strong credit scores and traditional income sources, as well as homeowners who are looking to tap into their home equity.
TD offers fewer niche products than lenders like RBC or Scotiabank, which have mortgages for borrowers who are self-employed or who have been in Canada for less than five years. If you have unique needs as a borrower, TD may not be the right fit.
TD mortgage feature overview
Mortgage variety
TD’s mortgage offerings aren’t especially varied when compared to some other Canadian lenders.
The bank’s largest sub-section of products is its closed, fixed-rate mortgages, which have terms of one to 10 years. TD also has open and closed five-year variable-rate mortgages, a six-month convertible mortgage and a one-year open fixed-rate mortgage. Toss in TD’s HELOC product, the TD Home Equity FlexLine, and that’s everything.
Ease of application
Starting the mortgage process with TD can be done either in-person or online through TD’s website. But you won’t actually be able to jump straight into a mortgage application online. TD only offers online mortgage pre-approval — which is a critical first step in the mortgage journey.
If you’d rather speak directly to a TD Mortgage Specialist, you can request a meeting through the bank’s website or mobile app or by calling 1-800-722-3098.
Amounts & terms
TD doesn’t appear to have a maximum mortgage amount. Its loan terms range from six months for its convertible mortgage product to 10 years for one of its closed fixed-rate mortgages. Its variable-rate mortgages are only available in five-year terms.
Mortgage rate transparency
TD is quite upfront about its mortgage rates. The bank makes sample posted rates for every product available publicly. It also publishes a number of special rates, which are TD’s limited time rate offers.
Rate types
TD offers both fixed and variable mortgage rates. All but one of TD’s fixed-rate options are closed mortgages, while you can get either open or closed variable-rate mortgages.
Mortgage fees
TD does not charge additional fees in typical mortgage scenarios. You may be required to pay for a home appraisal, but any other fees TD charges mortgage borrowers are generally related to late payments, foreclosures, and certain payment modifications.
Security/safety
TD Bank has multiple processes in place to protect its customers’ data. Firewalls, encryption and multiple identification requirements work together to secure your personal information. If your account is illegally accessed online, you will generally be reimbursed for the losses you suffer.
TD is transparent about the use of customer data. Its privacy policy can be found online, and the bank gives detailed information about how it collects and shares personal information.
Customer satisfaction ratings
It’s challenging to gauge how satisfied Canadians are with TD as a mortgage provider. Customer review websites can be helpful, but such reviews aren’t verified and may not accurately reflect the average option of TD customers. Unhappy customers, for example, may be overrepresented in these reviews. Nevertheless, these sites are one way to learn about possible downsides to consider.
- TD had a Trustpilot rating of 1.4 out of 5 possible stars based on more than 2,000 customer reviews, at the time of this writing. The most recent reviews contained feedback about a number of TD’s products and services; not just mortgages.
- TD received 1.25 out of a possible 5 stars, according to more than 80 customer reviews on the Better Business Bureau website, at the time of this writing. TD is not accredited by the BBB itself.
- TD had a Customer Service Scoreboard rating of 29.74 out of a possible 200, based on 168 ratings, at the time of this writing. Like Trustpilot, the reviews were not exclusively about TD’s mortgages.
TD mortgage eligibility requirements
Because it’s a federally regulated financial institution, TD’s lending criteria will generally be quite strict. The interest rate and loan amount you’re offered will be based on your finances, but before you get that far in the process, lenders will need to evaluate your:
- Credit score: Chartered banks like TD typically don’t lend to borrowers with lower credit scores. A credit score of 680 or higher is worth aiming for.
- Credit history: Having several established credit accounts in good standing, and no recent negative marks on your credit report, will help you get approved.
- Income: The amount you earn and how predictable your income is are both important factors.
- Down payment amount: You need to provide at least 5% of a home’s value as a down payment if it’s worth $500,000 or less. For homes worth between $500,000 and $999,999, you need 5% of the first $500,000 and 10% of the amount above $500,000.
- Debt service ratios: Your gross debt service ratio must not exceed 39%. Your total debt service ratio must not exceed 44%.
- Employment history: You generally have to show lenders that you’ve been consistently employed for at least two years.
Nerdy Tip: Use a mortgage affordability calculator to determine how much you can afford to pay for a home. If you have a unique situation or need additional information about the eligibility requirements, it’s best to speak directly with a mortgage specialist.
How to apply for a mortgage with TD
You can start the mortgage process online, over the phone or in person at a TD branch by getting pre-approved for a mortgage. To complete this step, you’ll need to provide financial details related to your income, debt and assets. You’ll also have to grant TD permission to carry out a hard credit check, which can temporarily lower your credit score.
Once you’re pre-approved, the next step will be to discuss your mortgage options, including loan amount, interest rate, rate type and amortization period, with a TD Mortgage Advisor. When you’ve chosen a mortgage product and locked in a rate, it’s time to go house hunting.
After you’ve made a successful offer on a home, it’ll be time to officially apply for a mortgage. Since you’ve already had your finances examined, this last part of the process shouldn’t take long.
Alternatives to a TD mortgage
TD is just one of many Canadian mortgage lenders. If the product you need isn’t available at TD, there are other Big Six banks, credit unions and B lenders you can turn to.
You can also consider reaching out to a mortgage broker and asking for help in finding a better deal on your home loan.
| Tangerine | RBC Mortgage | Rocket Mortgage | |
|---|---|---|---|
| Lender type | Online-only bank | Big Bank lender | Mortgage broker |
| Service area | National | National | National |
| In-person service? | No | Yes | No |
| Ease of application | Easy (online) | Easy (online, phone, in-person) | Easy (online) |
| Mortgage variety | Average | Average | Above average |
How to choose the right mortgage lender
Selecting the right mortgage lender is an important decision. Not only do you want to get the best mortgage rate, you’ll also want to align with a lender whose products, terms and conditions align with your financial needs.
To do all that, it’s helpful to do each of the following:
- Understand the different types of lenders. Mortgage providers include banks, credit unions, alternative lenders, and private lenders. Each has its own pros and cons.
- Compare offers from multiple lenders. Don’t commit to a mortgage from TD or any other lender until you have a solid idea of what constitutes a good current mortgage rate.
- Don’t focus solely on rates. The interest rate is important, but it’s just one part of the mortgage equation. It’s also important to consider a lender’s reputation, the types of loans they offer, any fees they charge, and how much prepayment flexibility you’ll have.
How TD calculates your mortgage payment
Like most lenders, TD will consider the following when calculating your monthly mortgage payment:
- Home price: the amount you agree to pay for a home.
- Down payment: how much you can afford to pay upfront on your home purchase.
- Amortization period: the total time it takes you to pay off your mortgage.
- Mortgage term: how long your mortgage contract will be in effect.
- Payment frequency: how often you’ll make mortgage payments.
- Mortgage interest rate: the amount a lender charges you to borrow its money; expressed as a percentage of the loan amount.
- Property taxes or title transfer fee: an annual fee based on your property value; not all mortgages are set up to include these fees.
- Mortgage default insurance: an extra cost you’ll pay if your down payment is less than 20%.
Example:
- Home price: $650,000
- Down payment: $58,500 (9%)
- Amortization period: 25 years
- Mortgage term: 5 years
- Payment frequency: Monthly
- Mortgage interest rate: 5.5%
- Mortgage insurance: $23,660
Frequently asked questions about TD mortgages
TD’s current mortgage rates are mostly in line with those offered by other Big Six banks. You might score a lower mortgage rate at TD by working with a mortgage broker. A broker may be able to negotiate a lower rate at TD by taking a smaller commission.
Mortgage approval times can vary depending on how busy TD’s Mortgage Advisors are, but borrowers themselves affect the process, too. Not providing the documentation a lender requires to properly assess your finances will inevitably delay the process.
About the Author
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