TD Prime Rates for TD Variable Mortgages & Other Products

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TD Prime Rate Today

TD Prime Rate: 5.45%

TD Mortgage Prime Rate: 5.60%

Today’s TD Bank Prime Rates are current as of December 21, 2024

Best 5-Year Fixed Mortgage Rates in Canada

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The prime rate in Canada is typically used as the basis for setting interest rates on many consumer and business loans, such as variable rate mortgages, car loans, HELOCs, lines of credit and student loans.

Prime rates in Canada follow movements in the Bank of Canada’s policy interest rate. If the Bank of Canada announces a rate hike, then TD will usually announce an increase in its prime rate on the same day, with the new prime rate being effective the following business day. That’s because each bank sets their own prime rate. Usually, TD’s prime rate is the same as the prime rates of other major banks in Canada.

The latest 0.5% decrease in TD’s prime rate meant that interest rates will be going down for borrowers with a variable mortgage rate. Just how much would TD’s latest prime rate change save you?

On a $500,000 mortgage, a 0.5% decrease in the prime rate would save you approximately $208.33 per month.

Enter your mortgage balance below to see how TD’s latest prime rate change would affect your mortgage.

Best 5-Year Fixed Mortgage Rates in Canada

Select Mortgage Term:

1-Yr

2-Yr

3-Yr

4-Yr

5-Yr

Fixed

Variable

See More Rates

TD’s variable mortgage rates are based on a discount or premium to TD’s mortgage prime rate. For example, you might be given a 0.4% discount from prime for a 5-year closed variable mortgage. If the mortgage prime rate is currently 5.45%, then the variable mortgage rate would be 5.05%. This is from the following steps:

5.45% - 0.4% = 5.05%

Since TD’s variable mortgage rates are dependent on the prime rate, any change in the prime rate will also cause your variable rate to change. If the prime rate increased by 1%, then your variable mortgage rate would increase by 1% too.

Variable-rate mortgage borrowers will see an immediate impact on their mortgage when prime rates change, as the interest portion of their mortgage payment will change. However, unless you have an adjustable-rate mortgage, the amount of your regular mortgage payment will not change. The only thing that changes is how much of your payment goes towards paying interest. This can affect your mortgage amortization and how long it takes to pay off your mortgage.

Some borrowers might have a variable rate at a premium to prime. For example, an open mortgage gives more flexibility in terms of prepayment abilities and lack of mortgage penalties, which comes with a higher rate. A 5-year open variable mortgage might be set at a 1% premium to the prime rate, rather than at a discount to it.

TD offers various line of credit options with variable interest rates based on the prime rate. This includes personal lines of credit, student lines of credit, investment secured lines of credit, and home equity lines of credit (HELOCs).

With an unsecured personal line of credit, you can borrow as much or as little as you need up to your approved limit whenever you need it. With TD, your credit limit can be from $5,000 to as high as $50,000. It has a "competitive" interest rate based on prime. You can also choose to lock in a fixed interest rate for some or all of your balance.

TD Student Line of Credit is a unique financial solution designed specifically for post-secondary students. It offers access to low-interest credit and can be used to help pay for tuition, books, living expenses, and more. With TD Student Line of Credit, you can borrow up to $80,000 for undergrads and up to $325,000 for professional and graduate students. Only interest payments are required during your studies, and you have 2 years (24 months) after leaving school before you have to make any principal payments.

The interest rate varies based on your program. The current TD student line of credit rates are shown below.

TD Student Line of Credit Rates

Current Interest Rates as of December 21st, 2024

Undergraduate Students: Starting from 6.45% (Prime + 1%)

Graduate Students: Starting from 5.95% (Prime + 0.5%)

Professional Programs*: Starting from 5.45% (Prime)

Medical, Dental, and Veterinary Students: Starting from 5.20% (Prime - 0.25%)

*Includes MBA, MFin, Optometry, Pharmacy, and Law students

If you have investments, you can use it as collateral to get a secured line of credit. This offers a lower interest rate than unsecured lines of credit. Just like other TD lines of credit, the investment secured line of credit has a rate based on prime.

TD’s home equity line of credit (HELOC) is called the TD Home Equity FlexLine. It's secured based on your home equity, which means that you can borrow a large amount of money, up to 80% of your home's value, at a low interest rate based on prime.

Best 5-Year Fixed Mortgage Rates in Canada

Select Mortgage Term:

1-Yr

2-Yr

3-Yr

4-Yr

5-Yr

Fixed

Variable

See More Rates

When deciding which GIC is right for you, it's important to keep an eye on changes in both the prime rate and current market conditions as these can affect GIC rates at any given time. The TD GIC rates below are current as of December 21, 2024.

Provider	3-Month	6-Month	9-Month	1-Year	1.5-Year	2-Year	3-Year	4-Year	5-Year
TD	2.75% 3-Month	2.75% 6-Month	2.75% 9 Month	3.25% 1-Year	3.35% 1.5-Year	3.25% 2-Year	3.15% 3-Year	3.30% 4-Year	3.30% 5-Year