Toronto-Dominion Bank offers a variety of mortgage types to cover the needs of as many clients as possible. First, let’s look through the available mortgage options.
- Fixed-rate mortgage
Fixed-rate mortgages are the best option for those who prefer stability. With this mortgage type, the monthly payment amount remains the same throughout the entire loan term, which can be either 15 or 30 years.
- Adjustable-rate mortgage
With an adjustable-rate mortgage, the rate may change after the initial fixed term, which can be 3, 5, 7, or 10 years. The overall term for this mortgage type is 30 years. Based on the SOFR index, the adjustable-rate mortgage rates may increase or decrease over time, providing both a risk and an opportunity.
- Construction mortgage
To get financing for building a new home or renovating an existing one, you can apply for a construction mortgage from TD Bank. With this mortgage type, you can choose between a fixed and adjustable rate. During the construction stage, you can pay for the interest only. After the construction stage is over, your construction mortgage transforms into a permanent mortgage.
- Jumbo mortgage loan
If you need financing in the amount larger than $647,200 (the FHFA single-family maximum loan amount), consider a Jumbo mortgage loan from TD Bank. With this loan, you can borrow larger amounts and choose between a fixed and adjustable interest rate.
- Low down payment home loans
With low down payment home loans from TD Bank, you can make a down payment of just 3%. There are programs to finance the purchase of different property types: single-family houses, condos, co-ops, manufactured housing, and more. The programs also feature unique private mortgage insurance (PMI) plans to reduce your monthly payment or qualify for a large financing amount.
- VA mortgage
Active-duty military, veterans, and spouses can apply for a VA mortgage with a 30-year fixed-rate term. This mortgage solution requires no down payment. VA mortgage also features purchase and cash-out refinance options.
- FHA mortgage
FHA mortgage is another affordable borrowing solution with a 3.5% down payment and a 30-year fixed-rate term. There are no income limits and homebuyer education requirements.
- Medical professional mortgage
Doctors, dentists, residents, or fellows with less than ten years out of residency are welcome to apply for a professional medical mortgage from TD Bank. With this mortgage option, an eligible borrower can purchase the first or next home with little to no down payment. A medical professional mortgage doesn’t require private mortgage insurance, and a contract for new employment can be valid proof of income.
How to apply for a TD mortgage?
Many homebuyers begin their mortgage journey by getting a pre-approval. Although pre-approval is not mandatory, it can bring certain benefits to you, such as:
- Getting a better idea of how much you can afford
- Having your interest rate secured for 120 days
Once you have found a home you want, you can proceed with a mortgage application. You can apply for a TD mortgage online, by phone, or in person at your local TD Bank branch.
Applying online is probably the most convenient option. You can complete your application at your own pace, pausing and resuming it as needed. Once you finish your application, await for a TD Mortgage Specialist to contact you to discuss the further steps.
Requirements
To qualify for a mortgage from Toronto-Dominion Bank, you must be a Canadian citizen or have permanent residence status in Canada. You must also be of the age of majority where your new home is.
Before applying, be sure to prepare the following information:
- The property closing date
- Down payment sources
- The preferred mortgage option
- The address of the property you are going to buy
- The MLS Realtor Listing
- The Purchase and Sale Agreement
- Documents confirming your employment status and income
- A list of assets you own
- Information about your liabilities
- Information about co-borrowers (if any)
Pros and cons
Here are the definite advantages of mortgage options from Toronto-Dominion Bank:
- Solutions tailored to specific needs of clients — medical professionals, clients experiencing down payment challenges, clients who are building a house, and more
- An opportunity to choose between a fixed and variable rate
- The convenience of mortgage application and loan management
Now, let’s outline the potential disadvantages:
- The rates offered by TD bank aren’t the lowest in the market
- In case you choose to switch your mortgage to another lender, you won’t be able to transfer mortgage life insurance from TD to a new financial institution
How to make a payment?
TD mortgage payment methods are similar to those for other TD loans. You can pay for your mortgage in any of the following ways:
- Send a mortgage payment from your checking or savings account (either online or through the TD app)
- Transfer the sum of the mortgage payment from your TD checking or savings account to your TD mortgage
- Make a mortgage payment by phone through an automated system
- Make a payment in person at your local TD bank store
- Pay through a TD Bank ATM
