Killer TD variable rate mortgage could be sign of better deals to come
The nation’s second-biggest bank just launched a killer variable mortgage rate. But keep it quiet. Apparently it doesn’t want everyone to know about it.
Toronto-Dominion Bank’s new offer is 6.19 per cent for uninsured mortgages. That’s equal to Canada’s benchmark prime rate (7.20 per cent) minus a plump discount of 101 basis points (bps).
Side note: Above I’ve referenced the prime rate the Bank of Canada tracks, simply because that’s the standard. TD has its own “Mortgage Prime Rate,” however, which is 15 bps higher than virtually everyone else. TD arbitrarily lifted its mortgage prime rate in 2016 despite no Bank of Canada rate hike at the time — because who needs central bank hikes when you’ve got moxie?
TD’s deal is sizzling — for a variable rate anyway. It’s a cool 54 bps below the next lowest rate from a nationally advertising variable-rate lender. And it’s the best widely available uninsured variable discount since 2021.
“From time to time, we offer special rates to win more business,” a TD spokesperson said by email. “In this case we are offering a limited time, two week uninsured special to kick off the spring market.”
And then there’s the icing on the cake. Like most big banks, TD is throwing cash at mortgage customers — in this case, up to $4,100 worth of bonuses depending on your mortgage size. In present value, that’s like getting another 10 bps off the rate for five years.
This promo is good until end of day May 14. There’s no telling whether the bank will extend the sale, but it’s a clear harbinger of better variable discounts to come.
TD confirms that the offer is available through both mortgage brokers and TD mortgage specialists.
The question is, three days into this rate sale, why is this
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