Basics

There are many different types of mortgages available. So before you set out to buy your first home, let us help you get familiar with the available options and how they apply to you.

Conventional vs. High Ratio mortgages

Conventional mortgage: A mortgage that does not exceed 80% of the lesser of purchase price or appraised value of the property. These mortgages do not require you to have mortgage insurance.

High Ratio mortgage: If you don't have 20% of the lesser of the purchase price or appraised value of the property, your mortgage must be insured against payment default by a Mortgage Insurer, such as CMHC or Genworth

What do they mean to you?

Fixed vs. Variable Interest Rate Mortgages

Fixed Rate Mortgage: Your interest rate will not change throughout the entire term of your mortgage.

Variable Rate Mortgage: Your interest rate may fluctuate from time to time because it changes when the TD Prime Rate changes.

Both Fixed and Variable Rate Mortgages are available with a number of different mortgage terms.

The term is the length of your current mortgage agreement with the bank.

• Typically, terms range from 6 months to 10 years
• When a term expires, the balance you still owe on your mortgage can be repaid, or a renewal of the mortgage term may be offered by the bank
• Short terms are usually 2 years or less
• Long terms are usually 3 years or more

What do they mean to you?

Open vs. Closed mortgages

Open mortgages: Let you pay any amount toward your mortgage at any time, without having to pay any compensation for doing so.

Closed mortgages: Require you to make set payments at set times and pay compensation if you want to pay more, renegotiate or refinance your mortgage before the end of your term.

What do they mean to you?

All about Amortization

Amortization Period: The length of time, in years, that you will need to pay off your mortgage completely, assuming the interest rate stays the same throughout that period.

Choosing your amortization period is important because it can affect how much interest you pay over the life of your mortgage.

• The standard amortization period is usually 25 years, but shorter and longer (up to 30 years) time frames are also available

No matter what length of amortization you choose, there are mortgage options that give you the flexibility to pay off your mortgage faster if you wish. For example:

• Make lump sum payments when additional funds become available to you
• Increase the frequency of your payments, such as paying weekly or bi-weekly instead of monthly

NOTE: These options will depend on the type of mortgage you have. A Mortgage Specialist can help you understand which give you the right amount of flexibility for your needs.

What does this mean to you? Learn about our mortgage products

Products

Fixed Rate Mortgage

Get security and peace of mind, knowing your interest rate won't increase over the term you select. You can also increase your payments without affecting the interest rate you pay. Terms up to 10 years.

See a chart with specific details Today's Rates

Six-Month Convertible Mortgage

Benefit from the typically lower interest rate of a 6-month mortgage term. Plus, you can always switch your mortgage to a longer term closed mortgage at any time during the 6 months - at no cost to you.

See a chart with specific details Today's Rates

One-Year Open Mortgage

Pay a little extra, any time without incurring additional fees or charges. This mortgage lets you do so without administration costs or prepayment compensation. And though the interest rate is fixed for the full year, you have the flexibility to switch your mortgage to a closed term at any time, without a fee.

See a chart with specific details Today's Rates

5% CashBack Mortgage

For renovations, furniture, appliances, or extra funds in your account, this mortgage gives you up to 5% of the value of your mortgage principal back, up front. The money is yours to spend as you choose.

This is a great option for first-time home buyers. You can even use your CashBack to pay down your mortgage*.

*Subject to the terms of your mortgage.

See examples and specific details Today's Rates

High Ratio Mortgage

If you've saved between 5 and 20% of the money you need, a High Ratio Mortgage can help you own a home now.

See a chart with specific details Today's Rates

Closed Variable Interest Rate Mortgage

Use interest rate fluctuations to your advantage with this option.

You can lock in your interest rate by converting to a Fixed Rate Mortgage at any time, as long as the new term is at least the lesser of 3 years or the remaining term.

See a chart with specific details Today's Rates

Open Variable Interest Rate Mortgage

This mortgage gives you great rates, fixed payments and the ability to pay off your mortgage faster.

You get the flexibility to increase your payments to any amount, anytime. Plus, you can pay off all or part of your mortgage without paying compensation (an administration fee applies in year one and two only). So lump-sum payments of any amount can also be made at any time.

If interest rates fall, more of your monthly payment goes toward your principal and less toward interest. So your mortgage gets paid off faster.

You can also lock in your interest rate by converting to a TD Canada Trust Fixed Rate Mortgage at any time.

See a chart with specific details Today's Rates Get tips on choosing the right mortgage

Choosing the right mortgage

Meet a Mortgage Specialist

Talk to an expert who can help you assess your budget, circumstances and goals for the future. A Mortgage Specialist will meet you whenever, wherever it's convenient, and help you factor all the variables into your mortgage decision.

Set up a meeting

Which Mortgage Works for Me?

This easy to use tool can help you explore on the best options for your needs.

Try it now See all of our interest rates

Flexible Mortgage Features

Flexible Mortgage Payment Features

We know how important it is to manage your mortgage. We also know how important it is to live life to the fullest. That's why a TD mortgage offers a range of features that help you balance both. Flexible Mortgage Payment Features like the payment vacation let you make lump sum payments or pay a little more each month by increasing your regular payments, so you can apply to take up to four months off.¹

What are the benefits of Flexible Mortgage Payment Features?

1. Take time off when you want

You may be able to skip up to four monthly payments when it benefits you the most with a payment vacation.²

2. Better manage your mortgage

Flexible Mortgage Payment Features give you freedom to manage your mortgage to suit your goals and financial needs as they grow and change throughout the years.

3. Get the most out of your mortgage

Whether you are planning on going back to school, staying home with a new baby or even paying off your mortgage faster, Flexible Mortgage Payment Features can help you find balance between your life and your mortgage payments.

For more information about Flexible Mortgage Payment Features Speak to a Mortgage Specialist to discover the right flexible features for you.

• Visit any TD Canada Trust Branch
• Or call 1-800-722-3098 to book an appointment

Or, apply for a mortgage pre-approval.

• Apply Now

TD can help you get better control of your mortgage payments

Flexible Mortgage Payment Features help you manage your payments, so you can get the most out of your mortgage. We can help you choose from a wide range of payment features so you can pursue what matters most.

What Flexible Mortgage Payment Features are available?

Payment Vacation Payment Reduction Skip a payment

How do Flexible Mortgage Payment Features affect your mortgage?

Flexible Mortgage Payment Features will result in interest capitalization. That means the interest will be added back to the principal outstanding on your mortgage.

• Interest is added back on each mortgage payment due date.
• The amount of interest being capitalized cannot cause your mortgage to exceed the lesser of a 90% loan-to-value ratio or exceed your original principal balance.
• The loan-to-value (LTV) ratio expresses the amount of a mortgage as a percentage of the total appraised value of a property, as determined by TD Canada Trust.
• If necessary, we will adjust the amortization period remaining at renewal so that the mortgage does not exceed the original amortization period remaining. This may result in an increase to the amount of your regular payments after the renewal.

Property taxes and mortgage critical illness and/or life insurance must continue to be paid (if applicable).
To be eligible, all TD Canada Trust debt, including your mortgage, must be - and continue to be - up to date, with no current delinquencies or arrears. As well, there must be no evidence of previous bankruptcy or written off debt.

Speak to a Mortgage Specialist to discover the right flexible features for your mortgage.

Pay for your mortgage faster and save money

There are several simple strategies you can do to help you pay off your mortgage as quickly as possible and free up funds sooner for other priorities - like travelling, paying for school or upgrading your home.

Increase the frequency of payments

Take advantage of increased payment options

Take advantage of lump-sum payments

Combine money saving strategies

Choose a shorter amortization period

Rates

Few factors are as important to your mortgage as interest rates. But as you consider which mortgage is right for you, we suggest you take all the features and benefits in to account as well.

Here are today's rates.

Special Offers1	Rates
4 Year Fixed Rate Mortgage	03

Fixed Rate Mortgages4
Term	Closed	Convertible	Open	5% Cash Back
6 mo		4.000%
1 yr	3.000%		6.300%
2 yr	3.040%
3 yr	3.550%
4 yr	4.540%
5 yr	5.140%			5.140% 1
6 yr	6.160%			6.160%
7 yr	6.350%			6.350%
10 yr	6.750%			6.750%

Variable Rate Mortgages5	Rates6	APR2
5 Year Closed Rate is TD Mortgage Prime. Effective Date October 1 2010	3.200%	3.200%
5 Year Open Rate is TD Mortgage Prime + 0.80%. Effective Date October 1 2010	4.000%	4.000%

Mortgage details to keepn in mind

Mortgage Financing

All of our mortgages are available as Conventional or High Ratio financing.

Mortgage Payment Options

All of our Fixed Rate and Variable Interest Rate Mortgages can be paid weekly, rapid weekly, biweekly, rapid bi-weeklysemi-monthly or monthly.

Rapid Paydown

For all of our mortgages, payments can be increased by up to 100% over the term without charge.

Prepayment Option

You can pay down up to 15% of your original mortgage amount each year, with the exception of the 1-Year Open Mortgage and the 5-Year Open Variable Interest Rate Mortgage.

With our 5-Year Open Variable Interest Rate Mortgage you can make a full or partial prepayment on any date; however, full prepayment is subject to an administration fee.

We can always help you learn more.

• Call us at 1-800-722-3098
• Email us
• Visit your local TD Canada Trust branch
• Meet a Mortgage Specialist

Learn about additional costs to consider

Additional Costs

Mortgage Default Insurance

If you'll be putting less than 20% down on the purchase of you home, you will be required to pay for mortgage insurance.

• The amount of the premium will depend on the amount you are borrowing and the percentage of your own down payment
• Typical fees range from 1.00% to 3.25% of the loan amount of your mortgage
• We may add this fee to your mortgage amount, or you can pay it in full with cash up front when you close

For more information visit Canada Mortgage and Housing Corporation (CMHC) or Genworth Financial Canada

Legal or Notary fees and disbursement

You should be represented by a lawyer or notary during the purchase process. You are responsible for paying their fees.

Your lawyer or notary may:

• Review the Offer to Purchase
• Search the title of the home
• Draw up the mortgage documents
• Look after all the closing details

Land Transfer Tax required for change of ownership

Most provinces levy a one-time tax when you buy a home (subject to change). This is generally the largest portion of closing costs on a resale home.

• It is usually based on a percentage of the purchase price of the property
• The amount varies from province to province

Property/Fire insurance is a must

You will be required to have proof of insurance for your mortgage lender effective at the time you legally take possession of your new home.

• This insurance must at least cover the replacement value of the home, and contents
• Some insurance companies may demand evidence of a home inspection before insuring certain types of dwellings

Title insurance can protect you

Title is a word lawyers use to describe the right of ownership to land. When you purchase a home, title is transferred to you, the new home owner.

Title insurance protects you against challenges to the ownership of your home or from problems related to the title to your home. These may include such things as:

• Fraud or forgery
• Encroachments on your property by a neighbour (for example, a neighbour's fence being partly on your land)
• Zoning non-compliance (where the property does no meet local by-law requirements)
• Someone other than the current home owner having interest in the property

To understand if you need title insurance, talk to a Mortgage Specialist or your lawyer or notary. Your lawyer/notary can arrange the purchase of a home owner's policy.

A Property survey

A survey is a document that specifies the exact size and boundary of your property, as well as the location of the building on the property and the type and size of the building including additions, if any.

If you are planning on doing any building - such as constructing a fence, deck, or adding on to your new home - a survey will help you know the boundaries you need to work within.

Have a home inspection

During a home inspection, a qualified professional will look over your potential new home, and outline any repairs that may be required.

• These may be minor or major areas of concern
• They may be immediate requirements, or things to be mindful of for the future
• As a buyer, you can take the inspection findings back to the seller and possibly renegotiate on price should major repairs be required

Appraisal fees - required with Conventional mortgages

For all Conventional mortgages, an Appraisal of Property is required before finalizing your mortgage.

Closing adjustments

Any property expenses that the seller may have prepaid on your new home will need to be reimbursed by you before the sale is finalized. The cost of these expenses will vary. They include:

• Municipal property tax
• Utilities, such as heating, hydro and water
• Condo maintenance fees, if applicable

Condo purchases

If you are purchasing a condo, this certificate outlines a condominium corporation's financial and legal state of affairs.

Fees for this certificate may vary.

Learn how personal insurance can protect your home and family

Mortgage Critical Illness and Life Insurance

You're going to want to protect your first home - and the important people in it. We can help you do the math on insurance. You'll see this small price can give the protection you need.

Mortgage life insurance¹ - protect your family and your home

If you die, get a terminal illness, or suffer a covered accident, your Mortgage Life Insurance can pay the following benefits:

• Your entire outstanding mortgage principal amount, less outstanding arrears, up to $500,000²
• Up to five years of accrued interest
• Any debit balance in your tax account

In the case of an illness that has been diagnosed as terminal within one year, this insurance offers an early payout to help alleviate financial concerns. For additional security, the same protection is also available to your co-borrowers or to the guarantor(s) of the mortgage.

Coverage for your mortgage can start on the date your mortgage is approved. This way, you are protected even before your new purchase closes.

If your mortgage is over $500,000, you may be eligible for partial Mortgage Life Insurance coverage.

Affordable coverage provides great value

Your cost of insurance is based on your age when you apply and the amount of your mortgage. Your premiums will not increase as you get older^†. It is comforting to know that this important coverage will remain affordable.

See premium rates and an example

Your payments

Your insurance premiums are included as part of your regular mortgage payment. They will be converted to the payment frequency that you choose for your mortgage payment.

Easy application method

Applying for Mortgage Life Insurance has never been easier. In most cases, you only have to answer a few health status questions.

You are eligible to apply if you are a Canadian resident, between the ages of 18 and 69, and approved for a TD Canada Trust residential mortgage or the guarantor of the mortgage.

How to apply

To apply for TD Insurance Credit Protection products on your Mortgage, visit your local TD Canada Trust branch

If you are applying for a Mortgage through EasyLine telephone banking or EasyWeb Internet banking, we automatically mail you an application with your information package. Complete it and return it to secure this valuable protection.

Satisfaction guaranteed

Mortgage Life Insurance comes with a satisfaction guarantee. If you are dissatisfied with Mortgage Life Insurance for any reason, you may cancel your coverage for a full refund within 30 days of purchase.

¹ Mortgage Critical Illness and Life Insurance provides life, terminal illness and optional critical illness insurance underwritten by The Canada Life Assurance Company and accident coverage underwritten by TD Life Insurance Company. Mortgage Critical Illness Insurance is an optional coverage available to those who qualify for Mortgage Life Insurance coverage. Defined terms and complete details of all benefits, including exclusions and limitations which may apply, are contained in the Certificate of Insurance. Certain restrictions may apply.

² Total for all Conventional or Canada Mortgage and Housing Corporation (CMHC) insured mortgages held with TD Canada Trust.

Mortgage Critical Illness Insurance - funds to help you recover

Odds are you will survive a critical illness. Take the financial stress out of your recovery.

In all likelihood, you know of someone who's been diagnosed with cancer, heart attack, or stroke. It happens to approximately one out of every two men and one in three women in Canada.¹

But while the incidence of critical illness is increasing every year, advances in medical science are helping victims beat life-threatening illnesses like never before.²

Studies have shown that:

• Cancer victims of all ages are living longer than before¹
• Approximately 80% of all heart attack and stroke victims will survive³
• More survivors are relying on insurance benefits to help them cope with the potentially high cost of recovery

What if it happens to you? Many insurance policies are created to protect your family only in the event of your death. When you survive a critical illness, you may not be able to return to work, your expenses could increase dramatically, and your life insurance policy may not help.

Now imagine how much easier it would be if your TD Canada Trust mortgage, up to $300,000⁴, was paid off by Critical Illness Insurance⁵. With no more TD Canada Trust mortgage payments, you could concentrate on getting better.

Key questions you should ask:

1. What Critical Illnesses⁶ are covered? 2. What happens if I have an Acute Heart Attack, recover in a few weeks or months, and return to work? 3. Does my disability insurance cover me for living benefits? 4. Why are only these three illnesses covered? 5. Is breast cancer covered? 6. Is prostate cancer covered? 7. What if the Critical Illness⁶ is terminal? 8. Can I get Mortgage Critical Illness Insurance without also insuring my life? 9. I already have Mortgage Life Insurance. Do I really need more insurance? 10. Do I need to take a medical examination to apply?

Mortgage Critical Illness Insurance works with your Mortgage Life Insurance

Mortgage Critical Illness Insurance⁵ is a benefit you enjoy while you are alive. It builds on your Mortgage Life Insurance to complete your protection so that you can be covered if you die, OR if you fall victim to Cancer (life threatening), Acute Heart Attack, or Stroke⁶, and survive. Mortgage Critical Illness Insurance is available as an enhancement to your TD Mortgage Life Insurance.

Affordable coverage provides great value

Your cost of insurance is based on your age when you apply and the amount of your mortgage. Your premiums will not increase as you get older^†. It is comforting to know that this important coverage will remain affordable.

If you choose to insure more than one customer, you will obtain a 15% discount on the total of your individual premiums.

See the cost of premiums

Your payments

Your insurance premiums are included as part of your regular mortgage payment. They will be converted to the payment frequency that you choose for your mortgage payment.

Easy application method

There are no lengthy forms to fill out and, in most cases, a medical examination is not required. If you're a Canadian resident between the ages of 18 and 55 and are a new or existing TD Canada Trust mortgage customer, you're eligible to apply for this unique protection. Coverage can continue until you reach age 70. See your Certificate of Insurance for details.

Satisfaction guaranteed

Mortgage Critical Illness Insurance comes with a satisfaction guarantee. If you are dissatisfied with your coverage for any reason, you may cancel it for a full refund within 30 days of purchase. After this, your coverage can be cancelled at any time.

¹ National Cancer Institute of Canada. Canadian Cancer Statistics, 2005.

² National Cancer Institute of Canada. Canadian Cancer Statistics, 2005. Heart & Stroke Foundation of Canada, The Growing Burden of Heart Disease and Stroke, May, 2003.

³ Heart & Stroke Foundation of Canada - Stroke Statistics, 2002. Canadian Institute of Health Information. Health Care in Canada, 2006. More current data may be available.

⁴ Total for all TD Canada Trust mortgages. Mortgages include Conventional or Canadian Mortgage and Housing Corporation (CMHC) insured mortgages only. Self-directed RSP mortgages and mortgages on commercial properties are not eligible to be insured.

⁵ Mortgage Critical Illness and Life Insurance provides life, terminal illness and optional critical illness insurance underwritten by the Canada Life Assurance Company and accident coverage underwritten by TD Life Insurance Company. Defined terms and complete details of all benefits, including exclusions and limitations which may apply, are contained in the Certificate of Insurance. Certain restrictions may apply.

⁶ As defined in the Certificate of Insurance. Exclusions and limitations apply.

⁷ Statistics Canada, Health Statistics Division, 2004 and Canadian Cancer Statistics, 2005. More current data may be available.

Additional resources can help you learn more

Mortgage Resources

Check your credit history

TD Canada Trust will check this background information on how you pay your financial obligations. Know where you stand and learn more about what the numbers mean.

Check my credit - Option 1: Equifax Check my credit - Option 2: TransUnion

More about Mortgage Default Insurance

Mortgage insurance can enable you to buy a home sooner when you have less than 20% as a down payment. Several insurers provide this insurance including CMHC and Genworth. Get more information about what it means to you.

CMHC Home Buyers' reference Genworth Financial Canada

Home Buyers' Plan

As a first time buyer, you can withdraw up to $20,000 from RSPs for a home purchase. Find out more about how this plan can help you own your first home.

Home Buyers' Plan Review our most frequently asked questions

FAQs

Buying your first home raises a lot of questions. Here are 10 of our most frequently asked.

1. How do I qualify for a mortgage?

When deciding whether or not an individual may be approved for a mortgage, many factors are taken into consideration. Aside from your gross annual income and a summary of assets and liabilities, we want to run a check on your credit history. Credit history, income and/or liabilities (past or present) all influence our final credit decision.

There are a number of resources available to prospective Mortgage clients. The My Mortgage Selector Tool will recommend what product may best suit your needs. The How Much Can I Afford Calculator will help you determine the amount of mortgage suitable to your financial situation.

How Much Can I Afford? Calculator My Mortgage Selector

2. What types of mortgages should I consider?

Because everyone has different goals, aspirations and tolerance for risk, we offer a variety of mortgages to meet your needs. These include Conventional and High Ratio mortgages and Fixed and Variable Rate Mortgages with longer or shorter terms.

To help you choose the best option, try this simple tool:

My Mortgage Selector

3. What are your mortgage interest rates?

View today's rates

Rates may vary from time to time, so be sure to check back often to confirm the rate for the mortgage you're considering.

4. What is a down payment?

A down payment is the portion of the purchase price that you have on hand. You should determine what your down payment will be well before you start house hunting.

The larger your down payment, the less your home costs will be in the long run. So it pays to save as much of a down payment as you can.

5. Where can I find money for my down payment?

Here are a few common strategies to help you raise money to put towards your down payment:

• Set up a regular automatic savings plan
• Save any special monetary gifts you may receive
• Use any investments you may have*
• Use your RSPs as a down payment. With the federal government's Home Buyers' Plan, you can use up to $25,000 in RSP savings ($50,000 for a couple) to help pay for your down payment on your first home. You then have 15 years to repay your RSP. To qualify, the RSP funds you're using must be on deposit for at least 90 days. You'll also need a signed agreement to buy a qualifying home.

*Please discuss the implications of withdrawing investments with your tax advisor.

6. What will my mortgage insurance premium be?

Any purchase where the down payment is less than 20% is considered a High Ratio mortgage, and the mortgage must be insured by approved insurers such as the Canada Mortgage and Housing Corporation (CMHC) or Genworth Financial Canada.

The amount of the premium will depend on the amount you are borrowing and the percentage of your own down payment. Typical fees range from 0.5% to 2.9% of the loan amount of your mortgage. A Mortgage Specialist can help you determine the amount.

7. Should I have my mortgage pre-approved before I look for a home?

It definitely makes sense to apply for pre-approval before you start looking for your first home. With the financial facts in hand, making such a large purchase can be a lot more comfortable.

Once you are pre-approved, you will know*:

• How much you can reasonably afford to borrow
• What your payments will be
• What you can offer when you find the perfect place

A pre-approved mortgage puts you under no obligation and is available to you at no cost.

Apply for pre-approval online

* Subject to conditions.

8. What will my mortgage payments be?

What you pay each month for your mortgage will depend on several things:

• The size of your mortgage (total purchase price minus down payment amount)
• The amortization period you choose
• The interest rate

Use this calculator to determine possible payment amounts, and compare your options.

Mortgage Payment Calculator

9. What are closing costs?

Closing costs are the additional fees associated with the purchase of your home that are in addition to the actual purchase price, such as legal fees and disbursements, land transfer taxes and moving expenses.

For High Ratio mortgages, you must also provide evidence of available cash for closing costs equal to 1.5% of the purchase price, no matter what your down payment is.

More about closing costs

10. How can I pay my mortgage off faster?

There are many ways to reduce the number of years it takes to pay down your mortgage. You may enjoy significant savings by:

• Increasing your payment
• Increasing your payment frequency schedule
• Making extra payments
• Selecting a shorter amortization at renewal

To learn more, speak to a Mortgage Specialist

Now, calculate your numbers with easy to use tools