Mortgages

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

  Make lump-sum payments or pre-pay a little more each month so that your mortgage is paid off faster and at the same time work towards the opportunity to take time off from making your mortgage payment when it benefits you the most.

  
  A payment vacation might be right for you if you need to:
  

  • Stay at home with a new baby
  • Continue your education
  • Take a sabbatical from work

  How it works:

  • A payment vacation is only available on new mortgages or renewals of existing mortgages completed after January 24, 2011
  • First, you must prepay your mortgage using your prepayment privileges in order to accumulate a prepaid amount:
    • Make lump sum payments against your mortgage
    • Increase the amount of your regular principal and interest payment,
    • Take advantage of rapid weekly or rapid bi-weekly payments
  • The number of eligible payments covered by your Payment Vacation will be based on a combination of your prepaid amount and your current regular monthly mortgage payment
  • A payment vacation is permitted once per term for up to four months

  A payment vacation will result in interest capitalization. Find out what that means for your mortgage below.

  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
  
  
  
• Payment reduction

  A payment reduction lets you continue making a portion of your mortgage payments, while making room for a new chapter in your life. You can either plan ahead and prepay the reduced amount of your mortgage payments, or take a one-time payment reduction.

  Payment reduction might be right for you if you need to:
  

  • Stay at home with a new baby
  • Take a sabbatical from work
  • Continue your education while working part-time

  How it works:

  • Option 1: Pre-paid payment reduction
    • Prepay your mortgage using your prepayment privileges in order to accumulate a prepaid amount
      • Make lump sum payments against your mortgage balance
      • Increase the amount of your regular principal and interest payment
      • Take advantage of more frequent payments
    • Based on the amount you have prepaid, you may be eligible for a payment reduction for up to four consecutive months
  • Option 2: One-time payment reduction
    • If you have not accumulated a prepaid amount, you may be able to reduce the equivalent of one monthly mortgage payment
      • One time per calendar year
      • No more than four times during the amortization period of your mortgage

  Payment Frequency	Monthly Mortgage Payment Equivalent
  Monthly	1 payment
  Bi-weekly, bi-weekly rapid or semi-monthly	2 payments
  Weekly or rapid weekly	4 payments

  A payment reduction will result in interest capitalization. Find out what that means for your mortgage below.
  
  

  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
  
  
  
  
• Skip a payment

  When you need to respond to an unexpected situation, it is great to know that you may have the flexibility to skip a mortgage payment.

  Skip a payment might be right for you if you need to:
  

  • Respond quickly to an unexpected situation
  • Take a short break from making your mortgage payment

  How it works:

  • It gives you the flexibility to skip the equivalent of one monthly mortgage payment
    • One time per calendar year
    • No more than four times during the amortization period of your mortgage
  • Skipped payments do not need to be consecutive, so long as they do not exceed the equivalent of 1 monthly payment per calendar year or cross over the calendar year end

  Payment Frequency	Monthly Mortgage Payment Equivalent
  Monthly	1 payment
  Bi-weekly, bi-weekly rapid or semi-monthly	2 payments
  Weekly or rapid weekly	4 payments

  Skip a payment will result in interest capitalization. Find out what that means for your mortgage below.

  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
  
  
  
  

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 biweekly or weekly payment options. To do so, half the monthly payment amount you currently make, or even quarter it and make payments on a weekly basis. The result? You pay less interest over time, and more of your money will go against the principal you owe.

  Example: A $100,000 mortgage, 25-year amortization, 6% interest rate on a 5-year term.

  Payment Frequency	Monthly Payments	Bi-Weekly Payments	Weekly Payments
  Payment	$639.81	$319.91	$159.96
  Interest over term	$28,219.33	$27,622.40	$27,594
  Outstanding Principal Amount at the end of 5 years	$89,830.73	$85,950.54	$85,921.62
  Outstanding Principal Amount at the end of 5 years	$89,830.73	$85,950.54	$85,921.62
  Your interest savings		$596.93	$624.57
  Your extra principal balance reduction		$3,880.19	$3,909.11

  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
  
  
  
• Take advantage of increased payment options

  By increasing your mortgage payment amount, you can significantly reduce your interest costs and have the benefit of paying down your mortgage faster. As a TD Canada Trust customer, you may increase your payment by up to 100% of the regular payment amount during the term of the mortgage.

  Example: A $100,000 mortgage, 25-year amortization, 6% interest rate on a 5-year term with monthly payments increased by 10% to $703.79.

  Total interest over term	$27,602.11
  Outstanding principal amount at the end of the term	$85,374.71
  Your interest savings	$617.22
  Your extra principal balance reduction	$4,449.68

  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
  
  
  
• Take advantage of lump-sum payments

  You can pay off your mortgage faster by making lump sum payments. Lump sum payments are applied to your principal amount, and can significantly reduce your interest costs. As a TD Canada Trust customer, you can make a lump-sum payment of up to 15% of the original borrowed amount each year.

  Example: A $100,000 mortgage, 25-year amortization, 6% interest rate on a 5-year term with 2% lump sum payments made annually on the anniversary of the mortgage start date.

  Annual lump sum payment	$2,000
  Total interest over the term	$26,924.85
  Outstanding principal amount at the end of the term	$78,536.25
  Your savings	$1,294.48

  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
  
  
  
• Combine money saving strategies

  You don't have to use just one strategy to save – you can combine all three of the ideas outlined above.

  Example: A $100,000 mortgage, 25-year amortization, 6% interest rate on a 5-year term with weekly payments, increased by 10% (to $175.95/week) and annual lump sum payments of 2% ($2,000) made annually on the anniversary of the mortgage start date.

  Total interest over term	$25,620.87
  Outstanding principal amount at the end of the term	$69,804.05
  Your interest savings	$2,598.46
  Your extra balance reduction	$15,570.66

  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
  
  
  
• Choose a shorter amortization period

  If you have the opportunity of choosing a shorter amortization period, you can reduce the amount of interest you pay over the shortened life of your mortgage.

  Example: A $100,000 mortgage, 25-year amortization, 6% interest rate on a 5-year term with a reduced amortization period.

  Amortization Period	Payment Amount per month	Interest cost over the amortization	Interest savings over the term	Balance remaining at the end of the term
  20 years	$712.19	$70,882.81	$21,001.15	$84,789.67
  15 years	$839.89	$51,146.89	$40,737.07	$75,895.73
  10 years	$1,106.51	$32,757.91	$59,126.04	$57,326.42

  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