TD Bank Group (Toronto-Dominion Bank) is Canada's second-largest bank by assets and one of the ten largest banks in North America. With a history stretching back to 1855 and over 1,100 branches across Canada, TD offers one of the most comprehensive mortgage product suites in the country. TD mortgage specialists are available in branches coast to coast, and the bank also works with mortgage brokers who can access select TD products on behalf of clients.
TD is best known in the mortgage space for its TD Home Equity FlexLine — a combination mortgage and home equity line of credit (HELOC) product that allows homeowners to access their equity as they pay down their mortgage. TD registers all its mortgages as collateral charges, typically at 125% of the property's appraised value, which simplifies adding additional credit products down the road but does make it costlier to switch lenders at renewal.
TD has made significant investments in its digital mortgage experience, offering an online mortgage application and pre-approval tool, and their mobile app allows borrowers to track payments, request lump-sum prepayments, and communicate with their mortgage specialist. TD also participates in federal first-time homebuyer programs including the First Home Savings Account (FHSA) and the Home Buyers' Plan (HBP).
TD calculates the Interest Rate Differential (IRD) using the difference between your contracted rate and TD's posted rate for the term closest to your remaining term — then discounts it by the discount you originally received. This posted-rate methodology can produce very large penalties. For example, a borrower who locked in at 4.34% when TD's posted 5-year rate was 6.84% received a 2.50% discount; if they break with 3 years remaining and TD's 3-year posted rate is 6.34%, the IRD is calculated against a much higher base, resulting in penalties that can reach $15,000–$25,000 on a $500,000 mortgage. Variable-rate mortgages are subject to only a three-month interest penalty.
The TD Home Equity FlexLine is a readvanceable mortgage product that combines a traditional amortizing mortgage with a home equity line of credit (HELOC). As you make regular mortgage payments and build equity, your available HELOC room automatically increases. The HELOC portion is accessed at TD's prime-based variable rate and can be used for renovations, investments, or other needs. This product is only available on TD's collateral charge registration, and the HELOC rate is typically prime plus 0.50–1.00%.
TD registers all its mortgages as collateral charges, typically at 125% of your home's appraised value. This allows TD to lend you more money in the future (such as through the FlexLine HELOC) without additional registration costs. The downside is that at renewal, you cannot simply transfer your mortgage to another lender — you must fully discharge the TD collateral charge and register a new one at the new lender, which requires a real estate lawyer and typically costs $700–$1,500. This effectively creates a switching barrier and can leave borrowers with less negotiating power at renewal.
Yes, TD mortgages are portable, meaning you can transfer your existing rate and remaining term to a new property when you sell your current home and purchase another. TD allows a port window of up to 90 days between the sale of your existing property and the closing of your new purchase. If the new mortgage amount is higher, the additional funds are blended at TD's current rate. Porting avoids the IRD penalty and is a valuable feature for borrowers who plan to move before their term ends.
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