TD Canada Trust is a leading bank based in Canada. It is one of the top 10 North American banks, and for a good reason. TD Canada offers multiple professional financial services, intending to change the lives of their customers and community. Mortgage services are amongst their many services.
With TD Canada, you can get a mortgage on your home, whether you are a new homeowner or you are making a switch from a different bank. Their mortgage services are comprehensive, affordable, and flexible. Read on to learn more about TD’s mortgage rates and options.
Canada’s Mortgage Rules
TD Canada adheres strictly to the mortgage laws of Canada as a country. Any customer who wants to apply for a mortgage with TD must be familiar with these rules. While your mortgage consultant might run over them with you, there is no harm in knowing some of the basics of Canada’s new mortgage rules. So here they are.
Stress Test: Customers who apply for mortgages are required to pass the qualifying criteria, also known as the stress test. This will determine whether they can afford a mortgage if interest rates increase. A TD mobile mortgage specialist can shed more light on the qualification criteria for individual customers.
Uninsured mortgage rates: Customers should know that the Office of the Superintendent of Financial Institutions has raised the qualifying rate for uninsured mortgages. From the previous 4.79%, it has now been increased to 5.25%. For customers with down payments over 20%, the stress test either uses the new qualifying rate of 5.25% or the customers’ mortgage interest rate plus 2%, depending on which is higher.
Insured mortgage rates: For customers whose down payments are less than 20%, the stress test uses the insured qualifying rate or the customers’ mortgage interest rate plus 2%, depending on which is higher.
These are just a few things to know about the current mortgaging laws before applying for a mortgage loan with TD.
TD’s Mortgage Options
At TD Canada Trust, they offer many different mortgage plans and options for customers. This allows them to cater to the individual needs of customers. Their options include:
First-time homeowners
TD understands the pressure and confusion that accompanies purchasing a home for the first time. This is why they offer mortgage services specifically for first-time homeowners. These services help customers decide on the best home and mortgage plan to suit their budget and tastes. The TD mortgage rate Canada for first-time homeowners varies.
First-time homeowner mortgage services include:
– Helping customers make smart financial decisions on how much they can afford to spend on a mortgage, including their current and future expenses.
– Assisting customers with pre-qualification for loans by assigning them to a loan officer.
– Walking customers through the process of mortgage application with sound financial advice.
– Educating customers on the real estate market, especially as new home buyers, and how to make offers on homes.
Home Loans and Down Payments
TD Bank offers mortgage plans for customers who can only afford to make low down payments due to money shortages. Their home loan options and their features include:
– FNMA Home Ready: 3% minimum down payment and flexible underwriting.
– TD Bank Right Step Mortgage: 3% minimum down payment and payments can come from gifts or grants.
– FHA Mortgage: 3.5% minimum down payment with no income limits.
– FNMA 97 Mortgage: 3% minimum down payment and only applicable for first-time home buyers.
– Veterans Administration Mortgage: no down payment or mortgage insurance required.
– FNMA Refi Now: high debt-to-income ratios and no cash back at closing.
You can get more information about all these home loans and down payment options at TD Bank’s official website.
Construction Loans
TD construction loans offer services to customers that are building new homes or renovating their current homes. TD construction loans offer the following features:
– Flexible down payments
– Both fixed and adjustable-rate options
– Interest-only payments during construction
– Initial loan payment
– Fixed-rate mortgage after construction.
The application requirements for construction loans can be found on TD Bank’s official website.
Mortgage Refinancing
TD Bank also offers mortgage refinancing services. These are applicable for customers who want to change their mortgage plan, lower their monthly payments or make significant purchases.
To apply for mortgage refinancing, customers will have to fill out a mortgage application and submit documents like credit reports. Closing costs will apply and can be up to 1-3% of the new mortgage cost. TD also offers a mortgage refinance calculator to give customers an idea of the probable cost of their new mortgage loan after refinancing.
Mortgage Affordability Calculator
TD offers the opportunity for customers to calculate a range of affordable house prices. This information is useful as customers enter the real estate market and trustworthy as it gives them a price range. All that customers have to do is fill out a questionnaire survey with some key information that will allow the calculator to give you a value for a home you can afford. This information includes details such as your desired location, annual income, monthly expenses, and others.
TD Mortgage Rate Canada
TD mortgage rates in Canada are as follows currently:
Fixed-Rate Mortgages:
I year fixed closed – 2.79%
2 year fixed closed – 3.54%
3 year fixed closed – 3.69%
4 year fixed closed – 4.14%
5 year fixed closed – 3.99%
6 year fixed closed – 5.24%
7 year fixed closed – 5.35%
10 year fixed closed – 5.06%
1 year fixed open:
4.50%
6-month convertible mortgage:
3.04%
5-year variable closed:
TD mortgage prime rate – 0.70%
5-year variable open:
TD mortgage prime rate + 1.00%
Annual percentage rates apply and vary and can be viewed on TD’s website.
Conclusion
TD Bank is a versatile and highly rated bank that offers services of all kinds. The mortgage plans create avenues for all classes of customers to suit their unique needs. The TD mortgage rate in Canada is affordable and can be fixed or variable, depending on what is most convenient to customers.
Whatever your mortgage needs may be, TD bank has an option for you.
TD Mortgage Interest Rates – Frequently Asked Questions.
What is the TD mortgage prime rate?
The TD mortgage prime rate is the standard TD mortgage interest rate for variable rates. Customers that apply for variable interest rates pay in terms of ‘TD mortgage prime rate + or – interest rate’. The TD mortgage prime rate is currently 3.35%
What is the difference between a fixed and variable interest rate?
TD mortgage interest rates can be fixed or variable. Fixed rates remain constant throughout your mortgage payment time. Variable rates may vary monthly depending on changes in the TD mortgage prime rate.
Can mortgage rates be negotiated?
While TD bank has a very vast array of mortgage options, in certain situations, customers could negotiate better rates.
Compare and get the best mortgage rates in Canada. Visit Best Mortgage Online website and find answers to your mortgage related queries.