Head to head · TD vs National Bank
TD vs National Bank mortgages: rates, prepayment, penalties and HELOCs compared
Two of Canada’s big banks, compared on the terms that cost or save you money, from each bank’s own pages. No ranking, no paid placement: just which one fits which borrower.
Bank pages checked October 31, 2026
National Bank: 5.14% vs 5.39%. Your offer can differ, so ask both.
TD (15% lump sum vs 10% a calendar year).
TD in our example: $13,365 vs $14,675 to break a new 5-year after 2 years if rates fall 1 point (high end of a range where a formula isn’t fully published).
Similar: TD 120 days (TD’s suggested start); National Bank up to 4 months.
TD: TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. National Bank: All-In-One: line of credit up to 65%, up to 80% with a mortgage; $7/month per account.
Pick on the clause you’re most likely to use: prepayment if you’ll pay down fast, the penalty rule and portability if you might move, the HELOC if you’ll re-borrow. Then ask the other bank to match.
Term sheets side by side
| TD Canada Trust | National Bank | |
|---|---|---|
| 5-yr special / posted | 5.39% / 6.14% | 5.14% / 6.14% |
| Prime used | TD Mortgage Prime 4.85% | National Bank prime 4.70% |
| Prepayment | 15% lump sum a year and payment increases up to 100%, once per calendar year. | 10% of the principal a calendar year, plus an extra payment up to your regular payment on each payment date. |
| Fixed-rate penalty | Higher of 3 months’ interest or IRD using TD’s posted rate for a similar mortgage minus your discount. Variable: 3 months’ interest. | Higher of 3 months’ interest or 1 month’s interest (max $500) plus the interest differential. Variable: 3 months’ interest. |
| Portability | Not stated on the TD pages we could read; ask TD. | Not stated on the National Bank pages we could read; ask the bank. |
| HELOC | TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. | All-In-One: line of credit up to 65%, up to 80% with a mortgage; $7/month per account. |
| Early renewal | TD says start 120 days before maturity (renew online through EasyWeb or the app). | Renew up to 4 months early with no penalty; protect a rate from 6 months out. |
Posted and special rates by term
| Term | TD special | TD posted | National Bank special | National Bank posted |
|---|---|---|---|---|
| 1-year | — | 5.69% | 5.49% | 5.49% |
| 2-year | — | 5.39% | 5.04% | 5.24% |
| 3-year | 5.24% | 6.15% | 5.04% | 6.09% |
| 4-year | — | 5.99% | 5.09% | 6.05% |
| 5-year | 5.39% | 6.14% | 5.14% | 6.14% |
| 6-year | — | 6.29% | — | 6.40% |
| 7-year | — | 6.40% | 5.34% | 6.40% |
| 10-year | — | 6.80% | — | 6.80% |
Same mortgage, broken after two years
A new 5-year fixed for $450,000 at each bank’s own 5-year special, discounted from its own posted rate, broken after 24 months. People usually break when rates have fallen, which is when the IRD bites, so we show both cases:
| TD | National Bank | |
|---|---|---|
| Starting rate (5-yr special) | 5.39% | 5.14% |
| Discount from posted | 0.75 pts | 1.00 pts |
| Compared with (3-yr posted less discount) | 5.40% | 5.09% |
| 3 months’ interest | $6,064 | $5,782 |
| Penalty, posted rates unchanged | $6,064 | $5,782 |
| Penalty, posted rates 1 point lower | $13,365 | $5,782–$14,675 |
Uses each bank’s published rule (see methodology); balance kept at $450,000 for a like-for-like comparison. “—” means the bank publishes no 5-year special rate to start from (Scotiabank shows specials only as APRs). Price your own mortgage in the penalty analyzer.
Bring TD’s written offer to National Bank (or the other way round) and ask them to beat it on the same term. Then compare the penalty clause, because that’s where these two differ most.
TD vs National Bank: questions
Is TD or National Bank better for a mortgage?
Neither wins on everything. On the terms each bank publishes: lower advertised 5-year fixed: National Bank: 5.14% vs 5.39%. Your offer can differ, so ask both. paying down faster: TD (15% lump sum vs 10% a calendar year). might break early: TD in our example: $13,365 vs $14,675 to break a new 5-year after 2 years if rates fall 1 point (high end of a range where a formula isn’t fully published). renewing early: Similar: TD 120 days (TD’s suggested start); National Bank up to 4 months. re-borrowing equity: TD: TD Home Equity FlexLine: up to 80% with a Term Portion; revolving portion at TD Prime. National Bank: All-In-One: line of credit up to 65%, up to 80% with a mortgage; $7/month per account. Get a written quote from both, and from a broker, for the same term.
How do TD and National Bank calculate prepayment penalties?
TD: Higher of 3 months’ interest or IRD using TD’s posted rate for a similar mortgage minus your discount. Variable: 3 months’ interest. National Bank: Higher of 3 months’ interest or 1 month’s interest (max $500) plus the interest differential. Variable: 3 months’ interest.
Can I switch from TD to National Bank at renewal?
Yes. At maturity there is no prepayment penalty, and since November 21, 2024 a straight switch with the same amount and amortization no longer needs a new stress test. The new bank may cover legal and appraisal costs; your current bank may charge a discharge fee. See the renewal checklist.
Sources
- Mortgage rates — TD Canada Trust, checked Oct 31, 2026
- Mortgage rates — National Bank, checked Oct 31, 2026
- Mortgage prepayment calculator — TD Canada Trust, checked Oct 31, 2026
- Pay off your mortgage faster (prepayment and charges) — National Bank, checked Oct 31, 2026
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