TD penalty calculator
TD Canada Trust mortgage penalty calculator
Estimate what it would cost to break a TD fixed mortgage, using TD’s own posted rates (October 31, 2026) and the penalty rule TD publishes. Then see whether breaking pays and how waiting cuts the cost.
TD Canada Trust · estimated cost to break today
$12,361
IRD applies
TD: greater of 3 months’ interest or IRD vs its posted 2-year rate less your discount.
Moving to 5.39% would save about $5,786 in interest over the 22 months left, so you’d be $6,576 behind after the penalty. Waiting for renewal, or porting, is likely cheaper.
Break-even new rate: 4.59%. Below that, breaking pays before your current term would have ended. Ignores legal, appraisal and discharge fees.
Waiting cuts the penalty
If posted rates stay where they are, waiting 6 months brings the estimate to $7,044; at maturity it’s $0. Early renewal at TD: TD says start 120 days before maturity (renew online through EasyWeb or the app).
Three ways to pay less
- Prepay first. Using this year’s privilege first lowers the base the penalty is charged on (15% lump sum a year and payment increases up to 100%, once per calendar year.)
- Port instead of breaking. Not stated on the TD pages we could read; ask TD.
- Blend and extend. FCAC describes early renewal at a blended rate as a way to avoid a full penalty. Ask TD for a quote.
TD’s own penalty page ↗ · always get the bank’s written payout figure.
The same mortgage at each big bank
Same balance, rate, discount and time left, priced with each bank’s own posted table (Oct 31, 2026) and the formula it publishes. This shows how much the bank’s penalty rule and posted table matter.
| Bank | Compares with | 3 months’ | Estimated penalty |
|---|---|---|---|
| RBC | 2-yr posted 5.74% | $7,080 | $9,377 |
| TD | 2-yr posted 5.39% | $7,080 | $12,361 |
| Scotiabank | 2-yr posted 5.24% | $7,080 | $13,640 |
| CIBC | 2-yr posted 5.24% | $7,952 | $13,640 |
| National Bank | 2-yr posted 5.24% | $7,080 | $7,746–$14,140 |
| BMO | 2-yr posted 4.94% | $7,080 | $7,080–$16,197 |
Estimates use simple interest over the months left (as in FCAC’s example); RBC, TD and Scotiabank say they discount to present value, which lowers the real figure somewhat. Today’s month is taken from your device; rates are as published on October 31, 2026.
TD’s rule, in its own words
- Closed fixed: the higher of three months of interest or the IRD amount.
- IRD: based on the difference between the principal you owe and what you would owe “using the posted interest rate for a similar mortgage, minus any rate discount you received”.
- Closed variable: three months’ worth of interest; no IRD.
TD posted rates used in the calculation
| Term | Posted rate |
|---|---|
| 1-year | 5.69% |
| 2-year | 5.39% |
| 3-year | 6.15% |
| 4-year | 5.99% |
| 5-year | 6.14% |
| 6-year | 6.29% |
| 7-year | 6.40% |
| 10-year | 6.80% |
Online estimates are a starting point. Ask TD for a written payout statement before you sign anything with another lender, or try TD’s own calculator.
Frequently asked questions
How does TD calculate its mortgage prepayment penalty?
Higher of 3 months’ interest or IRD using TD’s posted rate for a similar mortgage minus your discount. Variable: 3 months’ interest. See the TD profile for the bank’s exact wording and source.
Which TD posted rate is used?
The posted rate for the term closest to the time left in your term. TD’s posted fixed rates on October 31, 2026: 1-year 5.69%, 2-year 5.39%, 3-year 6.15%, 4-year 5.99%, 5-year 6.14%, 6-year 6.29%, 7-year 6.40%, 10-year 6.80%.
How can I lower a TD penalty?
Use your prepayment privilege first (15% lump sum a year and payment increases up to 100%, once per calendar year.), ask about porting (not stated on the td pages we could read; ask td.), or wait: td says start 120 days before maturity (renew online through easyweb or the app).
Sources
- Mortgage rates — TD Canada Trust, checked Oct 31, 2026
- Mortgage prepayment calculator — TD Canada Trust, checked Oct 31, 2026
- Reduce or avoid prepayment penalties — FCAC, checked Oct 31, 2026
Keep exploring
Other banks: RBC · Scotiabank · BMO · CIBC · National Bank
Educational information only, not financial, legal or tax advice. BankMortgages.ca is independent and is not affiliated with, endorsed by or paid by any bank named on this site. Bank terms change: confirm every rate and term with the lender and the official sources linked on each page before you act. Read the full disclaimer.