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TD Bank

Fixed mortgage rates drop - From 1.78%

  • Last Updated:
  • Dec 21st, 2022 9:48 pm
Deal Addict
Apr 4, 2017
2041 posts
654 upvotes
Toronto
I got 1.64 4 year fixed this February with 2000$ cash back.

Interesting.
Deal Fanatic
Sep 1, 2004
9665 posts
9195 upvotes
oldmanlogan wrote: Funny. To lock in 1.89 for 5 years is insane. That’s worth piece of mind.
Not saying that's not a good deal historically. But on $300K and 25 yr, you are giving up about $80/mth in interest for the 5yr term for "peace of mind" by picking 1.89% over 1.55%.

The peace of mind is basically you are betting the Feds WILL raise prime more than .75% in that 5 years.

Just to show that there's a price tag attached to your "peace of mind". But I understand, everyone's risk tolerance is different.
Member
Sep 29, 2002
416 posts
218 upvotes
Toronto
soupmaster666 wrote: I don't understand why a bank would penalize for moving from Variable to Fixed. The interest rate literally goes up a good jump, so they instantly start making more money. Plus the IRD scam in Canada means breaking a Fixed mortgage without using Martin's Mortgage Manoeuver can cost tens of thousands of dollars.
Exactly, my td agent said no cost to switch. However that rate is not for me.

I'm on variable at td at 1.28%, they offered 1.94% fixed for 5 years if I move to fixed.
Heatware: sandrasagra :D

FS [TORONTO ONLY] - PMBOK 4TH EDITION $50
Sr. Member
Mar 29, 2019
532 posts
662 upvotes
Xtrema wrote: Not saying that's not a good deal historically. But on $300K and 25 yr, you are giving up about $80/mth in interest for the 5yr term for "peace of mind" by picking 1.89% over 1.55%.

The peace of mind is basically you are betting the Feds WILL raise prime more than .75% in that 5 years.

Just to show that there's a price tag attached to your "peace of mind". But I understand, everyone's risk tolerance is different.
Of course they will, we’ll be lucky if it’s only .75 in 5 years.
Deal Addict
Feb 14, 2016
1832 posts
1222 upvotes
ysl5710 wrote: I got 1.64 4 year fixed this February with 2000$ cash back.

Interesting.
where? can you please let me know?
Sr. Member
Apr 16, 2008
526 posts
546 upvotes
b31770 wrote: My mortgage is not recent, so my variable rate is higher. I'm doing the math to see if it makes sense to lock in a lower fixed rate.

I read my contract, and have calculated the penalty to break it. But again, my question is what are the options if I wanted to STAY with TD and possibly convert my variable to a fixed. I truly don't know, so that is why I am asking.

Theoretically, the cost would be lower, and they would retain a mortgage, right?
In my experience, TD offers no incentive to stay. They charge the full penalty. I had about a year left on my mortgage when we purchased a new home, wanted to take a full 5 years fixed (2.79% was a great rate in 2014 and we kept being told it would never go lower lol). TD said sure, but you need to pay a penalty of several thousand dollars to break your mortgage, which was based on the rate differential.

Ended up porting the mortgage until renewal and have been a happy customer of a credit union ever since.

I would recommend talking to a broker. Many will give you cash back to cover a portion of the penalty.
Newbie
Jan 24, 2021
15 posts
15 upvotes
I work at TD. You can switch from variable to 3yr fixed or fixed term thats greater than term remaining, no penalty.
Just speak to advisor on telephone at branch and they will advise of your specific situation.

ie. you did 5 yr variable, have 1yr left. You can switch to 3yr or 1yr fixed term, no penalty
ie. you did 5yr variable, have 3 yr left. You can switch to 3yr or 4 yr, 5yr fixed term, no penalty
Jr. Member
May 16, 2017
152 posts
73 upvotes
Oakville, ON
bbt230 wrote: For reference, just got my mortgage end of August at 1.18% variable for 5 year term - 30 years. TD bank. With $2500 cash back.

I wonder if rates are still dropping?
Was it through broker and is it high ratio?
Newbie
Feb 29, 2012
73 posts
20 upvotes
VANCOUVER
bbt230 wrote: For reference, just got my mortgage end of August at 1.18% variable for 5 year term - 30 years. TD bank. With $2500 cash back.

I wonder if rates are still dropping?
777canadian wrote: Was it through broker and is it high ratio?
Curious as well - was this a CMHC insured mortgage? 1.18% seems really low especially for 30 year amortization. And $2500 cash back on top - this might be the RFD record in terms of mortgages...

Please share details and contact! Thanks :)
Member
May 26, 2017
205 posts
297 upvotes
Non CMHC insured,and non high ratio. I went though a TD mobile mortgage specialist for the deal.
Member
Jul 17, 2018
304 posts
159 upvotes
donuts4fun wrote: I work at TD. You can switch from variable to 3yr fixed or fixed term thats greater than term remaining, no penalty.
Just speak to advisor on telephone at branch and they will advise of your specific situation.

ie. you did 5 yr variable, have 1yr left. You can switch to 3yr or 1yr fixed term, no penalty
ie. you did 5yr variable, have 3 yr left. You can switch to 3yr or 4 yr, 5yr fixed term, no penalty
What if you did 5 year fixed, have 3 yr left? Face With Tears Of JoyCrying Face
Deal Addict
Mar 10, 2014
2789 posts
2885 upvotes
djredhat wrote: Inflation’s through the roof, but we keep pumping cash and lowering the interest rates.

Makes perfect sense…
Someone is profiting from the low rates. Economics 101 does not apply.
Sr. Member
User avatar
Aug 27, 2011
634 posts
2178 upvotes
Xtrema wrote: Read you contract on penalty. There is no way TD won't charge you to switch.

Variable at 1.55 and fixed at 1.89. Why would you want to switch to fixed? Are you that bullish that Canadian economy is going to boom? Or you are worried about hyperinflation due to our debt created by Feds?
In case you didn’t hear the announcement last week, bank of Canada will start raising rates before they taper off the bond purchasing program, which will likely start in mid 2022. If you factor in a modest 25bps increase the variable rate goes to 1.80%. I think is prudent for just 9bps to get fixed for a 5 year term, especially if you think inflation will persist.
Deal Addict
User avatar
Feb 9, 2009
2682 posts
1316 upvotes
GTA
bbt230 wrote: Non CMHC insured,and non high ratio. I went though a TD mobile mortgage specialist for the deal.
If in GTA then i need contact info
Please pm
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R.I.P Steve jobs...!!
Sr. Member
User avatar
Aug 27, 2011
634 posts
2178 upvotes
bbt230 wrote: For reference, just got my mortgage end of August at 1.18% variable for 5 year term - 30 years. TD bank. With $2500 cash back.

I wonder if rates are still dropping?
The BoC overnight rate is 0.25%. I don't think you want rate to drop anymore because this will likely mean the economy is in very bad shape and potentially lots of layoffs and unemployment.
Sr. Member
Nov 16, 2013
849 posts
298 upvotes
GTA
Are you sure even if the fixed rates are substantially lower than variable?

Why will TD do such change without any charge as they will loose money
donuts4fun wrote: I work at TD. You can switch from variable to 3yr fixed or fixed term thats greater than term remaining, no penalty.
Just speak to advisor on telephone at branch and they will advise of your specific situation.

ie. you did 5 yr variable, have 1yr left. You can switch to 3yr or 1yr fixed term, no penalty
ie. you did 5yr variable, have 3 yr left. You can switch to 3yr or 4 yr, 5yr fixed term, no penalty
Jr. Member
May 14, 2012
100 posts
126 upvotes
CALGARY
Those are very good rates, I got my mortgage done last month. TD offered me a garbage 2.16% on a fixed 5 years and wouldn't budge. Just my experience from the beddington branch of TD.
Deal Addict
Nov 9, 2008
1852 posts
875 upvotes
Toronto
Went with MCAP for 5 year Fixed @ 1.39% but that was in April of this year.

TD couldn't come anywhere near close to this when we approached them (long time customer). This was our experience with our last mortgage as well, wouldn't budge or negotiate at all.

1.89% fixed is a great rate and with one of the big banks, so nothing to shake a stick at.
Sr. Member
Sep 8, 2010
792 posts
1986 upvotes
Windsor
I just renewed a 5-year with TD in June last year. Any way to possibly re-negotiate to these rates? I'm at 2.53%
Deal Addict
User avatar
Aug 22, 2008
1439 posts
142 upvotes
Toronto
bbt230 wrote: For reference, just got my mortgage end of August at 1.18% variable for 5 year term - 30 years. TD bank. With $2500 cash back.

I wonder if rates are still dropping?
Wow that's not bad... I've been quoted 1.25% 5 year variable, 30 years. Is this location based? And does everyone get this cash back?

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