TD Canada Trust Lowers Mortgage Rates

Changes in Residential mortgage rates!

SUMMARY

Effective April 22, 2009, our Mortgage rates have changed as indicated below.

Term	Rate		Change
6-month convertible	4.90		N/A
1-year open	7.15		N/A
1-year closed	4.20		N/A
2-year closed	4.70		N/A
3-year closed	4.90		N/A
4-year closed	5.14		N/A
5-year closed	5.45		N/A
6-year closed	6.30		N/A
7-year closed	6.70		N/A
10-year closed	6.70		N/A
1-year closed Special	3.20		N/A
4-year closed Special	4.09		N/A
5-year closed Special	4.15		N/A
10-year closed Special (*2)	5.25		N/A
Variable Interest Rate Mortgages	TD Mortgage Prime	Variance	Rate
Closed VIRM: Rate is TD Mortgage Prime + 0.80%	2.50	+0.80	3.30
Open VIRM: Rate is TD Mortgage Prime + 1.00%	2.50	+1.00	3.50
Home Equity Line of Credit	TD Prime	Variance	Rate
Float: Spring Money-Out Limited Time Offer: Rate is TD Prime + 1.00%(*1)	2.25	+1.00	3.25

Notes:

• (*1) TD Prime + 1.00% is a “Spring Money-Out” Limited Time Special, which is valid on fundings through June 30, 2009
• (*2) Special is valid on new mortgage applications received by May 31, 2009 and mortgage must be advanced by July 31, 2009. Offer may be changed, extended or withdrawn at any time without notice. Mortgage renewals must be signed and submitted to TD Canada Trust by May 31, 2009.

 

Announced today – TD Canada Trust pricing structure on the 4-5 year fixed term products.

Effective April 7, 2009, our Mortgage rates have changed as indicated below.

Term	Rate	Change
6-month convertible	4.90	-0.30
1-year open	7.15	-0.30
1-year closed	4.20	-0.30
2-year closed	4.70	-0.30
3-year closed	4.90	-0.30
4-year closed	5.14	-0.30
5-year closed	5.45	-0.10
6-year closed	6.30	-0.10
7-year closed	6.70	-0.10
10-year closed	6.70	-0.10
1-year closed Special	3.20	-0.30
4-year closed Special	4.09	-0.30
5-year closed Special	4.15	-0.10
10-year closed Special (*2)	5.25	N/A
Variable Interest Rate Mortgages	TD Mortgage Prime		Variance	Rate
Closed VIRM: Rate is TD Mortgage Prime + 0.80%	2.50		+0.80	3.30
Open VIRM: Rate is TD Mortgage Prime + 1.00%	2.50		+1.00	3.50
Home Equity Line of Credit	TD Prime		Variance	Rate
Float: Spring Money-Out Limited Time Offer: Rate is TD Prime + 1.00%(*1)	2.50		+1.00	3.50

Notes:

• (*1) TD Prime + 1.00% is a “Spring Money-Out” Limited Time Special, which is valid on funding through June 30, 2009
• (*2) Special is valid on new mortgage applications received by May 31, 2009 and mortgage must be advanced by July 31, 2009. Offer may be changed, extended or withdrawn at any time without notice. Mortgage renewals must be signed and submitted to TD Canada Trust by May 31, 2009.

Increased Amortization with Leverage

Hidden Money!

Increased Amortization with Leverage

 

Another strategy I employ with clients, involves increasing their mortgage amortization (which decreases payments) then taking out an investment loan and investing, with the plan of using it to pay down the mortgage in future.   It effectively lowers your monthly payment, creates a tax deduction annually, and pays off a mortgage quicker.

This looks really good, & has great potential, however it is important that you are aware of any risks associated with this particular strategy. This is the more risky of the 3 strategies (and although I have attached a sample of what this might look like – using a real client) this is really something we would want to go over before you make any decisions.

SAMPLE – for illustration purposes only

Original Principal: $248,000.00
Mortgage Loan Date: January 1, 2008
Original Proposed
Payment Frequency: Monthly Monthly
Mortgage Type: Fixed Rate Fixed Rate
Interest Rate: 5.000% 5.000%
Term (years): 10.00 10.00
Amortization (yrs/periods): 15.00 / 180 35.00 / 420
Payment Amount: $1,955 $1,244
Total Payments in First Year: $23,455 $14,922
Total Interest Cost For Term: $90,248 $115,032
Total Interest Cost For Amortization Period: $103,818 $274,280
Mortgage Balance at 10 years: $103,702 $213,809
Take out 100,000 Investment loan over 10 years with an 8% rate of growth (see
projections) = $110,226 net.
If used to pay down mortgage, outstanding balance after 10 years = 103,583 left owing on
the mortgage.
Your monthly payments are reduced by $344 per month & because your borrowing to
invest on the $100,000 investment loan. You will get a tax refund of $1764 annually.
Net result
$1764 in new tax savings
$119 less left owing on your mortgage
$344 less in monthly payments
• original cost – proposed + cost of Investment loan (367/month)
These projections are based on certain assumptions that are believed to be reasonable, but there is no assurance that the actual results
will be consistent with this projection. The actual results may vary, perhaps to a material degree, from these projections.

TD Mortgage Rate Lowers! 4.35%!!

Great news TD Mortgage Rate Lowers!!

 

TD Mortgage rates are lowering! Today it was announced that effective November 19^th 2008 that a limited time offer of 4.35% 1 Year Closed Fixed Rate Mortgage will be offered on applications up to December 31^st 2008. All transactions must be funded by no later than April 30^th, 2009. As with all Mortgage products the offer can be changed or withdrawn at any time – time is of the essence! Is your mortgage working for you, or are you working for your mortgage? Today is the perfect time to start saving money. Today!

TD Lower Mortgage Rates

November 7th 2008 TD Canada Trust is please to advise of a new limited time offer effective Novemer 8th, 2008 Limited Time Offer of 5.34% on the 4-Year Fixed Mortgage * applies to new applications up to November 30th * Must be funded by March 31st 2009 *Offer may be changed to withdrawn at any time Great news for those who are looking for the stability of a fixed rate, or are looking for the maximum qualification. Until today’s announcement the 3 year fixed rate at 5.7% was the lowest qualifying rate. This will allow borrows to qualify for more mortgage while keeping there TDSR and GDSR in line. I am always happy to answer your mortgage questions, please drop me a line at david.hudson@td.com Cheers, David