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- With a fixed rate mortgage, the interest rate and the regular payments you make will stay constant for the term of your mortgage, offering stability.
- With a variable rate mortgage, the interest rate will change when the TD Mortgage Prime Rate changes. This means that the portion of your payment that goes toward the principal may increase or decrease over the term of your mortgage8.
What is an APR? It’s an annual percentage rate that reflects, in addition to interest, some or all of the fees that apply to your mortgage loan. To understand how we calculated the APR, please see below.
The Annual Percentage Rate (APR) is based on a $300,000 mortgage, 25 year amortization, for the applicable term assuming monthly payments and fee to obtain a valuation of property of $300. If there are no fees, the APR and interest rate will be the same. APR is rounded to three decimal places.
All mortgage borrowers are subject to qualifying criteria (aka stress test) that would determine whether they would be able to afford their principal and interest payments should interest rates increase. Check with your TD Mobile Mortgage Specialist to understand how qualification rules can affect your mortgage loan.
- Down payment
A down payment is the amount of money you put towards the price of a home at the time of purchase.
- Amortization period vs term
The amortization period and a mortgage term have different meanings.
The amortization period is the total number of years it takes to pay off your mortgage assuming the interest rate and payment amount remains the same. If your down payment is less than 20%, your maximum allowable amortization period is 25 years. If your down payment is greater than 20%, you could have an amortization period of up to 30 years.
A mortgage term is the length of time you’re committed to a mortgage rate, lender, and associated conditions. TD has mortgage terms ranging from 6 months to 10 years, with 5 years being the most common option.
- Payment frequencies
Enjoy the flexibility of choosing how often to pay. You can determine your payment schedule, such as Weekly, Bi-Weekly, Monthly or several other options.
Did you know? Paying every other week might seem the same as paying twice a month but it's not. You’ll be making two extra principal and interest payments a year potentially saving thousands of dollars in interest over the term.
Some homes are listed for a few hundred thousand dollars while others go for millions.
Some costs to consider include the down payment, mortgage payments, appraisal fee, renovations, home inspection, legal fees and title insurance.
There are also additional governmental costs that vary by province, such as land transfer tax, mortgage registration fee and possibly even a municipal land transfer tax. Plus, don’t forget the moving costs!