TD Variable Interest Rate Mortgages

A TD variable interest rate mortgage means the rate of interest is based on the TD Mortgage Prime Rate, which can go up and down over the term of a mortgage loan. This is different than a fixed interest rate mortgage where the interest rate is locked in for the term of the mortgage loan. Here are some important things to know as you explore your fixed vs variable rate options:

  • What determines variable interest rates for mortgages?
    TD uses the TD Mortgage Prime Rate plus or minus a variance to calculate variable mortgage rates. The TD Mortgage Prime Rate is impacted by the Bank of Canada rate and other market factors.
  • What is an APR?
    The Annual Percentage Rate (APR) reflects the cost of borrowing over an entire term. It is normally higher than the variable interest rate because it includes some or all of the fees, as required, that apply to your mortgage loan in addition to interest.

Comparing TD variable and fixed interest rate mortgages

Variable rate

Fixed rate

Interest rate

Can go up or down over the term of a mortgage loan.

Locked in and will not change over the term of a mortgage loan.

Payment amount

Does not change over the term, but if the TD Mortgage Prime Rate rises then the portion going towards interest will go up.

Does not change over the term, with each payment covering both interest and principal.

Term length

5 years.

6 months, 1, 2, 3, 4, 5, 6, 7 or 10 years.


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Common questions about variable rate mortgages

If you wish to take advantage of falling interest rates, then a variable rate mortgage lets you do just that with an interest rate that fluctuates with the TD Mortgage Prime Rate. On the other hand, this means your interest rate can also go up.


Fixed rate mortgages offer predictability with a set interest rate that will not change over the term of your mortgage. This means you’ll know exactly what to budget for.


An open variable rate mortgage gives you added flexibility with the option to put prepayments toward the mortgage loan anytime without a prepayment charge until it is completely paid off. With a closed variable rate mortgage, you have the option to prepay your mortgage loan each year up to 15% of the original principal amount without a prepayment charge. Charges will be incurred on any amount above 15%.


Yes, you always have the option to switch to a fixed rate mortgage at current mortgage interest rates. When switching, the term selected must be at a minimum the lesser of three years or the remaining period of the original term. Some people may choose to consider this when, for instance, interest rates begin to rise.


A TD Home Equity FlexLine (HELOC) is an alternative to a mortgage which allows you to borrow at a variable interest rate that changes with the TD Prime Rate. You can also have a variable rate mortgage and a HELOC at the same time. Learn more about TD Home Equity FlexLine.

Learn more about our Mortgage Terms or visit the glossary.


Additional resources

  • TD Mortgage Affordability Calculator

    Ready to find your new home? Answer 6 simple questions and explore how much you can afford.

  • TD Mortgage Payment Calculator

    Use this calculator to compare your options and find the mortgage payment amount that best suits your needs.


Discover mortgages across Canada

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  5.  Rates - Calgary

  1.  Rates - Quebec

  2.  Rates - Montreal

  3.  Rates - Vancouver

  4.  Rates - Winnipeg

  5.  Rates -  Ottawa


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