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What is the cost to prepay my mortgage early?

For all of our closed TD Canada Trust mortgages your prepayment privileges are as follows:  
•    increase your monthly payment by 100% of the original payment,
•    each calendar year pay a lump sum of up to 15% of the original mortgage amount toward your outstanding balance, and
•    change your payment frequency to a more frequent payment schedule

If you have a closed fixed rate mortgage:

You will be charged a prepayment charge on the full amount being prepaid if you pay more than the prepayment privilege allows. If you want to pay out all or part of your mortgage before the end of your term, you will also pay compensation. Your compensation will be the greater of:
•    three months interest, or
•    the interest rate differential amount which is the amount equal to the difference between your mortgage interest rate and the posted interest rate on a mortgage that is closest to the remainder of your term less any rate reduction or discount received by you, multiplied by the amount being prepaid and multiplied by the time that remains on your term.

In addition, you must pay a reinvestment fee of $ 300 if you are in your initial term.

Cash Back:  If you have received a cash back amount, you must refund to us a proportionate amount of that amount if you prepay the mortgage in full, based on the number of whole months remaining in the term

If you have a closed variable interest rate mortgage:

If you pay more than your prepayment privilege allows, you must pay a prepayment charge in an amount equal to three months interest on the full amount that you prepay.
In addition, you must pay a reinvestment fee of $ 300 if you prepay the mortgage in full if you are in your initial term.

You are important to us. If you have any further questions about prepayment charge, please don't hesitate to visit your branch or call 1-800-281-8031.

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