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Flexible Mortgage Payment Features

TD mortgages have flexible payment options and can help you prepare for the unexpected. Whether you’re having a baby, taking a sabbatical, or your financial needs grow and change with time, a TD mortgage offers a range of flexible features to suit you.

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Speed Up
Your Payments
Slow Down
Your Payments
Prepayments

Speed it up.

You can pay more often by increasing your payments from monthly to rapid weekly or even biweekly. Over time, more frequent payments will mean that you are paying your mortgage faster.

Increase your payment.

If you find yourself with an increase in your budget, you can make additional mortgage payments of up to 100% of your regular mortgage payment once per calendar year during the term of your mortgage loan.

Prepayments.

Got some extra cash? Use it to prepay a bit of your closed mortgage and shrink the amount you owe, faster. Make a lump-sum payment of up to 15% of the original principal amount borrowed once per year, free of any prepayment charges. You can prepay as much as you like to reduce your principal if you have an open mortgage loan.

Each of these options allows you to pay less interest and pay down your mortgage faster. Win-win!

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Payment pause.

If you need to take an emergency break on your payments, you may be able to. You may be able to skip the equivalent of one monthly payment if you need to, no more than once a calendar year, up to four times over the length of your amortization period.¹

Payment vacation.

If you know change is on its way, you can prepare by prepaying in advance. Request to take up to four months off your payments by prepaying, either a lump-sum or by adding more to your regular payments in advance.¹

Payment reduction.

Keep making your regular payments — just make them a little smaller for up to four months.

If you know you'd like to reduce your payments in the near future, increase your payments in advance. When the time comes, you're set to make payments that work for your current situation.¹

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What is a prepayment?

Want to know how a prepayment is different from a principal and interest payment? A prepayment is a lump-sum payment of any amount in addition to regular scheduled payments. Like it sounds, prepayment means paying your debt down early.

Whether you make one or multiple lump-sum payments, a mortgage prepayment on the principal amount leaves you with a smaller debt, and over time, less interest to pay.

Check your terms. Closed term mortgages often have clauses to define how much you can prepay and how often. Paying more than your mortgage loan agreement specifies might result in charges. An open mortgage is structured to allow prepayments anytime, in any amount, without charge.

Benefits. Prepayments are a great way to reduce the amount of interest you'll pay overall. The quicker you pay your principal, the less interest you pay. So if you can make a lump-sum prepayment, you're ahead of the game.

When it makes sense. Prepayments are a great idea. It's also a great option if you earn a commission or a yearly bonus. If you are free of debt, have an emergency fund, and are a regular contributor to your retirement savings plan, then mortgage prepayment is the next step to consider.