TD Canada Trust Mortgage Renewal in 2026

TD's Collateral Charge — What It Means at Renewal

TD is the only Big 6 bank that registers every residential mortgage as a collateral charge — a policy that has applied to all new TD mortgages since October 18, 2010. This is materially different from the standard charge used by RBC, BMO, CIBC, and National Bank on their core mortgage products.

A collateral charge secures the mortgage against the property at an amount that can exceed the actual mortgage balance — often up to 125% of the appraised value. This allows TD to offer "re-advanceable" products like the Home Equity FlexLine without requiring a new registration every time you borrow more. It also allows TD to secure other credit products (credit cards, loans) under the same charge.

The downside at renewal: you cannot switch to another lender by simply assuming the existing charge. A new lender must discharge TD's collateral charge and register their own mortgage. This requires a real estate lawyer and typically $700-$1,500 in legal fees. Many lenders offer cash-back incentives that offset these costs.

If you plan to stay with TD at renewal, the charge type doesn't matter — you're not moving. If you plan to shop the market, factor ~$1,000 in net switching costs into your comparison. See our switching lenders guide for the full walkthrough.

TD Mortgage Rates at Renewal

TD's posted 5-year fixed rate as of April 2026 is approximately 5.99%; the 5-year fixed special (the rate negotiated with most customers) is approximately 4.59%. Your renewal letter may show a rate somewhere in between — often 10-40 basis points above the special rate — which is where negotiation starts.

TD's prime mortgage rate is 4.60%, which is 15 basis points higher than the Big 6 standard prime of 4.45%. This matters if you have a variable-rate TD mortgage — your rate is priced off TD's prime, not the standard prime, so a prime - 0.80% variable is effectively TD Prime (4.60%) - 0.80% = 3.80%, not 4.45% - 0.80% = 3.65%.

Before signing your renewal, get at least two broker-sourced quotes for comparison. Monoline lenders (First National, MCAP, RMG) frequently undercut TD's special rate by 15-25 basis points, and credit unions may be sharper still. On a $500,000 mortgage, a 0.20% rate difference saves approximately $5,100 over a 5-year term.

TD Prepayment Privileges

TD's standard prepayment privileges are generous by Big 6 standards:

• Lump-sum prepayments: Up to 15% of the original principal amount per year, applied to principal without penalty.
• Payment increase: You can increase your regular payment by up to 100% (double your payment) without penalty.
• Anniversary dates: Most TD products allow prepayments on any regular payment date, not just the mortgage anniversary.

On a $500,000 mortgage, the 15% privilege allows up to $75,000/year in lump-sum prepayments. If you receive year-end bonuses or want to aggressively pay down principal, TD's privilege is competitive. Compare these to the 20% privilege at some lenders (like BMO on standard fixed) and 15-20% at First National to see the full picture.

TD's IRD Penalty Methodology

If you break your TD fixed-rate mortgage mid-term, the Interest Rate Differential (IRD) penalty is calculated using a discounted-rate methodology. The comparison rate is TD's current posted rate for the remaining term, less the discount you received at origination.

This produces higher IRD penalties than the contract-rate methodology used by monolines like First National. A typical example: a customer with a 3-year remaining term on an original 5-year fixed may see an IRD penalty of $15,000-$30,000 at TD that would be $8,000-$15,000 at a monoline.

This matters only if you break the mortgage mid-term. At renewal (at maturity), no IRD penalty applies — you're free to switch lenders without penalty. The IRD calculation is relevant to future flexibility: if you might sell or refinance before the next maturity date, a lender with a fairer IRD methodology saves money.

The TD Renewal Letter Playbook

1. 1. Don't sign the first offer

   TD's initial renewal offer is typically 20-50 basis points above the rate they'll give you after negotiation. Read the letter for facts but do not sign.

2. 2. Get broker quotes

   A 30-minute broker call produces quotes from 3-5 lenders (banks, monolines, credit unions). This sets your benchmark for negotiation with TD.

3. 3. Call TD's retention line

   Armed with a competing quote, call TD and ask to speak with mortgage retention. Request rate matching. TD has real retention budget and will often match or come close to a concrete broker quote.

4. 4. Compare net-of-switching-cost

   If TD won't match, compare the net savings after ~$1,000 in collateral-charge switching costs. On a $500K mortgage, a 0.20% rate advantage is $5,100 over 5 years — switching pays even with costs. Many lenders cover those costs via cash-back.

5. 5. Sign before maturity

   Whether you stay or switch, make sure the new mortgage funds before your maturity date. If you don't actively sign anything, TD will auto-renew you — often at a worse rate than the initial offer.

When Staying with TD Makes Sense

Despite the collateral charge and sometimes-higher rates, staying with TD can be the right choice when:

• You actively use the Home Equity FlexLine for re-advanceable credit;
• TD matches or comes close to broker-sourced rates after negotiation;
• You value TD's branch network and digital banking integration;
• You have multiple TD products and the total relationship value justifies staying;
• Your qualifying ratios are tight and a switch would require requalification you might not pass.

The key is making an informed decision. A free broker call gives you the benchmark — then you can negotiate with TD from a position of information or switch with confidence.