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Man and woman looking at tablet, renewing their mortgage.
• Jan. 17, 2024

If your TD mortgage is up for renewal in the next year, chances are you have a lot of questions – especially if you are feeling uncertain about how your mortgage payment may change given the current interest rate environment.

You might be wondering: How can you lower your future mortgage payments? When can you lock in an interest rate? And can your finances handle potentially higher payments? These concerns are understandable in today’s economy, and TD Mortgage Specialists are here to help you through the renewal process.

To learn more about what TD mortgage customers might expect as they prepare for renewal, we spoke to Carly Fautley, Associate Vice President and Product Group Owner, Homeowner's Journey at TD, for some advice about a few of the ways you can prepare if your TD mortgage is up for renewal in the next 12 months.

Evaluate your personal financial situation

First things first: Any opportunity to pay down your principal now means your payments will be lower when it's time to renew your TD mortgage, Fautley said.

Bringing down your mortgage principal can help lower your future payments from what they would otherwise be – which is especially helpful in a higher interest rate environment. Of course, inflation and elevated interest rates might be putting some pressure on your finances already, but even small changes in your budget today can make a difference.

To see what’s possible for you, Fautley recommends evaluating your personal financial situation by creating a budget if you don’t already have one, familiarizing yourself with the current interest rates, and reading up on the TD mortgage renewal process (here’s a handy resource for almost everything you need to know about renewing at TD). A strong awareness of your financial situation can help you plan accordingly, Fautley said.

If you’re concerned about the impact increased interest rates could have on your future payments, affordability and what rates might be when it's time to renew your TD mortgage, Fautley advises homeowners to speak to a TD Mortgage Specialist sooner rather than later. A Specialist can help TD mortgage customers understand all their options so they can feel more confident heading into the TD mortgage renewal process.

“Even with 12 months remaining before renewal, you still can accumulate additional savings to make a lump-sum payment or increase your current payments a little bit to help decrease the outstanding balance on your mortgage – which may help to offset higher payments resulting from higher rates," Fautley said.

"If payment affordability for your TD mortgage is a concern, connecting with a TD Mortgage Specialist early can help you understand your options and create a plan for renewal.”

Speed up your TD mortgage payments

If you have room in your budget, you might be able to start a more accelerated payment schedule where you make your TD mortgage payments more frequently. For example, you might consider moving from a monthly payment to a rapid biweekly payment, which could help pay off your mortgage faster.

To see what accelerated payments might look like for your TD mortgage, you can use The TD Mortgage Payment Calculator.

And if you want more information or to move ahead with an accelerated payment schedule for your TD mortgage, you can speak to a TD Mortgage Specialist.

Make a lump-sum payment

If your cashflow changes as a result of a bonus, tax return, or if you have additional savings, you might consider using it to make a lump-sum payment toward your mortgage, in addition to your regular payments, Fautley said.

As with accelerated payments, the goal with a one-time lump sum is to help bring down your mortgage principal ahead of renewal, which can result in less interest paid over time.

The type of mortgage term you have will affect how you can make lump-sum payments, Fautley said. If you have a closed mortgage term with TD, you can pay up to 15 per cent of the original amount borrowed per year without a prepayment charge (the minimum amount you can prepay is $100). If you want to make a lump-sum payment of more than 15 per cent in the year, a prepayment charge will apply.

If you have an open mortgage term with TD, you can make as many lump-sum payments as you’d like each year, without prepayment charges. The minimum amount you can prepay is $100.

Increase the mortgage payment amount

Another option for TD mortgage customers looking to put more money towards their mortgage ahead of renewal is increasing mortgage payment amounts, so you’re paying off your principal faster. Even a small amount can help.

At TD, customers can increase their original principal and interest payment by up to 100 per cent at any time during the term of their mortgage.

Understand how early you can lock in interest rates

At TD, you can renew your mortgage up to 120 days before your maturity date without prepayment charges.

If you have a TD mortgage and don’t reach out to TD yourself to understand your renewal options, you can still expect to hear from the Bank anywhere from four to five months ahead of your maturity date to remind you of your renewal, Fautley said.

TD customers can expect to get a renewal offer letter in the mail about a month ahead of their maturity date that outlines renewal options. TD will honour the rates in the renewal offer up to maturity. For example, if interest rates changed the day after the customer got their letter, they could go to any TD branch and they would be able to renew using the rates set out in their offer.

As an added benefit, if you renew your TD mortgage into a fixed interest rate, TD will give you the lowest posted rate and apply your rate discount if the posted rate for the fixed interest rate term drops before your maturity date. This feature offers TD mortgage customers protection from a potential decrease in fixed interest rates. If your rate is decreased, you can elect to reduce your principal and interest payment to match the amortization period.

In addition, if you make a lump-sum prepayment after your renewal and before your renewal start date, you can also elect to reduce your principal and interest payment to match the amortization period.

Ask questions today — and avoid waiting until the last minute

Fautley said the bottom line is that if you have questions about renewing your TD mortgage, or have affordability concerns, you can reach out to a TD Mortgage Specialist. The sooner you understand your TD mortgage options, the sooner you can make a plan.

“It's never too early for TD customers to meet with a TD Mortgage Specialist to talk about their renewal and educate themselves on their options,” Fautley said.

Speed up your TD mortgage payments

If you have room in your budget, you might be able to start a more accelerated payment schedule where you make your TD mortgage payments more frequently. For example, you might consider moving from a monthly payment to a rapid biweekly payment – which does come with a higher payment – which could help pay off your mortgage faster.

To see what accelerated payments might look like for your TD mortgage, you can use The TD Mortgage Payment Calculator.

And if you want more information or to move ahead with an accelerated payment schedule for your TD mortgage, you can speak to a TD Mortgage Specialist.

Make a lump-sum payment

If your cashflow changes as a result of a bonus, tax return, or if you have additional savings, you might consider using it to make a lump-sum payment toward your mortgage, in addition to your regular payments, Fautley said.

As with accelerated payments, the goal with a one-time lump sum is to help bring down your mortgage principal ahead of renewal, which can result in less interest paid over time.

The type of mortgage term you have will affect how you can make lump-sum payments, Fautley said. If you have a closed mortgage term with TD, you can pay up to 15 per cent of the original amount borrowed per year without a prepayment charge (the minimum amount you can prepay is $100). If you want to make a lump-sum payment of more than 15 per cent in the year, a prepayment charge will apply.

If you have an open mortgage term with TD, you can make as many lump-sum payments as you’d like each year, without prepayment charges. The minimum amount you can prepay is $100.

Increase the mortgage payment amount

Another option for TD mortgage customers looking to put more money towards their mortgage ahead of renewal is increasing mortgage payment amounts, so you’re paying off your principal faster. Even a small amount can help.

At TD, customers can increase their original principal and interest payment by up to 100 per cent at any time during the term of their mortgage.

Understand how early you can lock in interest rates

At TD, you can renew your closed mortgage up to 120 days before your maturity date without prepayment charges (open mortgages can renew at any point).

If you have a TD mortgage and don’t reach out to TD yourself to understand your renewal options, you can still expect to hear from the Bank anywhere from four to five months ahead of your maturity date to remind you of your renewal, Fautley said.

TD customers can expect to get a renewal offer letter in the mail about a month ahead of their maturity date that outlines renewal options. TD will honour the rates in the renewal offer up to maturity. For example, if interest rates increased the day after the customer got their letter, they could go to any TD branch and they would be able to renew using the rates set out in their offer.

As an added benefit, if you renew your TD mortgage into a fixed interest rate, TD will give you the lowest posted rate and apply your rate discount to it if the posted rate for the fixed interest rate term drops before your maturity date. This feature offers TD mortgage customers protection from a potential decrease in fixed interest rates. If your rate is decreased, you can elect to reduce your principal and interest payment to match the amortization period when you provide your renewal instructions.

In addition, if you make a lump-sum prepayment after your renewal and before your renewal start date, you can also elect to reduce your principal and interest payment to match the amortization period.

Ask questions today — and avoid waiting until the last minute

Fautley said the bottom line is that if you have questions about renewing your TD mortgage, or have affordability concerns, you can reach out to a TD Mortgage Specialist. The sooner you understand your TD mortgage options, the sooner you can make a plan.

“It's never too early for TD customers to meet with a TD Mortgage Specialist to talk about their renewal and educate themselves on their options,” Fautley said.


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