Payment Vacation

Make lump-sum payments or pre-pay a little more each month towards the opportunity to take up to 4 months off from making your mortgage payment when it benefits you the most.

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

Want to know more about our Flexible Mortgage Features?

Call us toll-free at 1-800-722-3098, or visit a branch in your area.

Expand 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 prepayments 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. To find out more, or to see a helpful example of how it works, visit the desktop version of the site.

Collapse 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.

expand Legal and other information

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.

Apply at your local branch

Need Help?
Call 1-866-222-3456