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TD Bank

Fixed mortgage rates drop - From 1.78%

  • Last Updated:
  • Dec 21st, 2022 9:48 pm
Newbie
Jan 24, 2021
15 posts
15 upvotes
vivmk20 wrote: 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
Yes it is apart of your contract that you can renew under those terms of without penalty.
We are in different times under COVID with these kinds of rate drops which are not common historically.

Here is the link - click 5yr closed variable and see conditions -
https://www.td.com/ca/en/personal-banki ... age-rates/
Deal Addict
Oct 14, 2004
1468 posts
671 upvotes
Victoria
For those quoting various variable rates, what are your prime +/- rates? It doesn't seem correct to reference it like fixed rate like 1.18% or 1.25% ?
Deal Addict
Aug 23, 2004
1448 posts
60 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
If there is 1 year left of 5 years - can you switch to 5 year term?

Any idea how long this offer is for - a week, a month, etc.?
Deal Fanatic
Aug 31, 2010
6931 posts
5854 upvotes
MikeyCanuck wrote: For those quoting various variable rates, what are your prime +/- rates? It doesn't seem correct to reference it like fixed rate like 1.18% or 1.25% ?
Prime is 2.45...do the math lol
Last edited by hvc on Sep 21st, 2021 9:10 pm, edited 1 time in total.
Member
Oct 14, 2014
219 posts
427 upvotes
Halifax, NS
With current mortgage rates and inflation rates, you'll be ahead by simply borrowing as much as you can and stashing it under your mattress.
Borrow borrow borrow.
Newbie
Jan 24, 2021
15 posts
15 upvotes
Raven_007 wrote: If there is 1 year left of 5 years - can you switch to 5 year term?

Any idea how long this offer is for - a week, a month, etc.?
Yes if you've got 1yr left on a variable you can go to 5yr fixed.
Its not a promotion, it's been around for over 7 years, and likely will not change. Part of your contract for variable.
Deal Addict
Aug 23, 2004
1448 posts
60 upvotes
donuts4fun wrote: Yes if you've got 1yr left on a variable you can go to 5yr fixed.
Its not a promotion, it's been around for over 7 years, and likely will not change. Part of your contract for variable.
I meant 1.89% 5 year fixed rate - how long is it for? :) E.g. does TD normally keep this rate for at least a month or no such thing and it can change any time?
Newbie
Jan 24, 2021
15 posts
15 upvotes
Raven_007 wrote: I meant 1.89% 5 year fixed rate - how long is it for? :) E.g. does TD normally keep this rate for at least a month or no such thing and it can change any time?
Oh haha!

That rate can change at any point. We only get notification night before, sometimes just a couple hours before we close.

Think of it this way, if based on your mtg amount, if the rate dropped by 0.25%, how much would that equate to in terms of $$ and would you be willing to wait to see if it goes up/down?
If you've got a small mtg, likely small impact. The advisor can give you an estimate based on your specific circumstance.
Deal Fanatic
Jun 4, 2012
5028 posts
4469 upvotes
vivmk20 wrote: 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
Not sure about now but before this was the case. Moving from variable to fixed longer was no penalty.

Nowadays I was told there is a penalty but this wasn't TD thou. 3 months of interest. No IRD.
Deal Fanatic
Jun 4, 2012
5028 posts
4469 upvotes
Raven_007 wrote: If there is 1 year left of 5 years - can you switch to 5 year term?

Any idea how long this offer is for - a week, a month, etc.?
Yes but you pay a hefty penalty most likely.best to ask your bank about your specific situation.
[OP]
Member
Nov 18, 2013
238 posts
390 upvotes
Calgary
Depending on the loan amount, it would only be a few 10s of dollars difference. I would rather be fixed in and not have to worry about and changes in the bonds market. And this market isn’t really determined by the Canadian market but more the us and European markets.

All it would take it one or two moves up and the variable would be worse than the fixed.
Deal Addict
Aug 23, 2004
1448 posts
60 upvotes
donuts4fun wrote: Oh haha!

That rate can change at any point. We only get notification night before, sometimes just a couple hours before we close.

Think of it this way, if based on your mtg amount, if the rate dropped by 0.25%, how much would that equate to in terms of $$ and would you be willing to wait to see if it goes up/down?
If you've got a small mtg, likely small impact. The advisor can give you an estimate based on your specific circumstance.
Thanks!

Is 1.89 5 year high ratio though? Online the rate is 1.89 for high ratio, 1.99 for non-high ratio.
muffin4life wrote: Yes but you pay a hefty penalty most likely.best to ask your bank about your specific situation.
Of course. In my case the bank is TD, so there should not be a penalty but I will ask.
Sr. Member
Nov 10, 2003
794 posts
251 upvotes
Concord
Interest rate is not going up anytime soon. Between Covid and China tension, we have a better chance going negative.
UNOO - Meet Canada's Premium Heated Jacket
Sr. Member
Jul 25, 2019
535 posts
220 upvotes
I’m being quoted 1.1% for a 5 yr variable / 30yr amort from TD. No cash back tho…maybe I should ask
Newbie
Oct 18, 2009
90 posts
104 upvotes
Edmonton
What does high ratio mean? How high?
I'm quoted 1.32% with 20% down and 700k principal 25yr, no cash back, is this a bad deal?

Thanks in advance.
Deal Addict
Jul 30, 2015
4084 posts
3361 upvotes
Toronto, ON
OSIRISHOTEP wrote: What does high ratio mean? How high?
I'm quoted 1.32% with 20% down and 700k principal 25yr, no cash back, is this a bad deal?

Thanks in advance.
High ratio is < 20% with CMHC insurance.
Sr. Member
May 8, 2016
791 posts
1846 upvotes
OSIRISHOTEP wrote: What does high ratio mean? How high?
I'm quoted 1.32% with 20% down and 700k principal 25yr, no cash back, is this a bad deal?

Thanks in advance.
Relative to people put 20% down payment, banks usually provide a lower rate to people with high ratio mortgage (less than 20% down payment) since it’s insured (by CMHC or other mortgage insurance companies), when all other situations are equal.
Deal Addict
Sep 11, 2006
2158 posts
822 upvotes
christ 10 years ago I was looking at homes and thought 1.99% fixed can't possibly last
Deal Addict
User avatar
Oct 16, 2008
4641 posts
2512 upvotes
How many times can the interest rate go up in five years? At this point, any increase is bound to impact the economy severely.
Deal Addict
Nov 20, 2017
1153 posts
929 upvotes
ilove wrote: How many times can the interest rate go up in five years? At this point, any increase is bound to impact the economy severely.
Kind of a funny question considering most people on 5yf wouldn't understand interest rate impact on economy. 10y yields will tank if stock market corrects any further. I will have ended up reducing my interest payment cost for the 2nd time in the past 4 years by going shorter term variable. My bro went into TD branch to see his "friend" who locked him in 5 years at 3% after buying first house in 2019. Great friend

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