Mortgage Prepayment Calculator

How much will I be charged to make a prepayment?

Making prepayments is a great way to pay less interest over the lifetime of your mortgage, Home Equity Line of Credit (HELOC) or TD Home Equity FlexLine. If the term is closed to prepayment, then there may be a charge if you've prepaid more than 15% of the original principal in any one year.

Use this calculator to estimate what your prepayment charge may be.

What kind of prepayment do you want to make?

I want to prepay the remaining balance
I want to prepay a portion

What information do I need to complete the calculation?

The following will help you to complete this calculator:

    If you have a mortgage:
  • Mortgage Loan Agreement or Mortgage Commitment
  • Mortgage Renewal Agreement
  • Annual Mortgage Statement
    If you have a Home Equity Line of Credit or TD Home Equity FlexLine:
  • Amending Agreement to Line of Credit Agreement Real Estate Secured
  • Home Equity Line of Credit Fixed Rate Portion Renewal Agreement
  • Amending Agreement to Home Equity Line of Credit Agreement Term Portion – Fixed/Variable Rate
  • TD Home Equity FlexLine Term Portion – Fixed/Variable Rate Renewal Agreement

Let's calculate what you're prepayment charge may be.

Please enter a valid amount.
Please enter a valid amount. The amount you want to prepay now, along with what you have already prepaid exceed the original principal amount. Please try entering another amount.
Please enter a valid amount. The amount you want to prepay now, along with what you have already prepaid exceed the original principal amount. Please try entering another amount.

What is a prepayment charge?

If you pay off your outstanding balance before your term's maturity date, or pay an amount greater than your allowable prepayment privileges, you may have to pay a prepayment charge, depending on the terms of your mortgage or HELOC/TD Home Equity FlexLine.

If the term of the mortgage loan is open, you can prepay in part or in full with no prepayment charge.

Let's calculate what your prepayment charge may be.

What do you currently have?

Mortgage
TD Home Equity Line of Credit or FlexLine

Is there a way to avoid prepayment charges?

Whether you're paying off your balance in full because you are moving, or simply paying down your principal amount sooner, TD gives you a number of options for prepaying without paying prepayment charges.

Make prepayments within your prepayment privileges

Make one or more prepayments up to a total of 15% of the original principal amount every year, if your term is closed.

What is your current interest rate?

Please enter a number between 0.01 and 99.99.

How are prepayment charges calculated?

For Closed Variable Interest Rate Mortgages, this charge is calculated as a three months interest amount.

For Closed Fixed Interest Rate Mortgages and Home Equity Lines of Credit with fixed rate portions and TD Home Equity FlexLines with a Term-Portion-Fixed Rate, the prepayment charge is the greater of either:

  • The three months interest amount, or
  • an Interest Rate Differential (IRD) amount. The IRD amount is the difference between the principal amount you owe at the time of prepayment and the principal amount you would owe using a similar mortgage rate. A similar mortgage is one we offer today with a term that is closest to the remaining term of your mortgage loan. The similar mortgage rate is the interest rate for a similar mortgage minus any rate discount you received for your mortgage loan.

If the term of the mortgage loan is open, you can prepay in part or in full with no prepayment charge.

View prepayment FAQs

What is the outstanding balance?

Please enter a valid amount.

Where can I find this information?

For information on your current product, please login to EasyWeb or call 1-800-281-8031.

What is the current term for your product?

What is a term?

A mortgage term is the length of time that the mortgage agreement at your agreed interest rate is in effect. After the term expires, the balance of the principal owing on the mortgage can be repaid or renewed at the current interest rates.

What is your maturity date?

Please enter the maturity date for your product.

What is the maturity date?

Your maturity date is the last day of the term of the current mortgage agreement.

Enter your rate discount

For the most accurate result enter your personal discount

To obtain your rate discount please refer to your Mortgage Loan Agreement or HELOC/TD Home Equity FlexLine documents or one of the other sources listed below

If you do not have access to these documents we have estimated the discount to be: {{calculator.mortgage.preRateDiscount}}% based on the date the product funded.

What is the estimated rate discount?

If you have ported your mortgage during the term our estimated rate discount may not be accurate for your situation, please refer to one of the sources listed below.

Rate discount = TD's Posted Rate for the Term you selected at the time you obtained your mortgage - The Mortgage Rate you got for your mortgage.

    For the most accurate result please enter your personal rate discount. Your discount can be found on your:
  • Mortgage Loan Agreement or Mortgage Commitment
  • Mortgage Renewal Agreement
  • Annual Mortgage Statement
  • Amending Agreement to Line of Credit Agreement Real Estate Secured
  • Home Equity Line of Credit Fixed Rate Portion Renewal Agreement

Alternatively you can call us at 1-800-281-8031 where a mortgage specialist can provide you with your rate discount.

Do you have a CashBack Mortgage?

Please enter an amount that is greater than 0 and less than {{calculator.cashback.max}}.

If I received cash back, is it used in the calculation?

No the CashBack amount is not included in your prepayment charge, however, the pro-rated CashBack amount must be repaid.

Your estimated prepayment charge is {{calculator.payment.total | currency:'$':2}}*

How did we calculate this charge?

There is no prepayment charge for a closed product if you make one or more prepayments up to a total of 15% of the original principal every year.

Your prepayment charge is based on:

You want to prepay the remaining balance of {{calculator.mortgage.payment | currency:'$':0}}
You have a {{calculator.mortgage.rate}}% mortgage rate

What's included in your prepayment charge?

Here's how we calculated your estimated prepayment charge, based on the information you gave us:

{{expandable1 ? '—':'+'}} Step 1: The similar mortgage rate

In the estimate, we take the annual interest rate of a current mortgage similar to yours and applied your existing rate discount.

Posted rate for a similar mortgage {{calculator.payment.currentRate}}%
{{customRateDiscount?"":"Estimated"}} Discount received on current mortgage {{calculator.mortgage.rateDiscount}}%
=
Similar mortgage rate {{calculator.payment.discountedRate}}%
{{expandable2 ? '—':'+'}} Step 2:The difference between rates

Then we found the difference between your annual interest rate and the similar mortgage rate.

Annual interest rate {{calculator.mortgage.rate}}%
Similar mortgage rate {{calculator.payment.discountedRate}}%
=
The difference {{calculator.payment.rateDiff}}%
{{expandable3 ? '—':'+'}} Step 3:The prepayment interest

Next, we took the difference between rates and multiplied it with your prepayment amount.

The difference {{calculator.payment.rateDiff}}%
×
Your prepayment amount{{calculator.portion| currency:'$':0}}
=
Annual interest on the prepay amount {{calculator.payment.interest | currency:'$':0}}
{{expandable4 ? '—':'+'}} Step 4: Estimated result

We took your annual interest and multiplied it by the number of months remaining on your mortgage term. Then we divided it by 12 months to estimate your prepayment charge.

Annual interest on the prepay amount {{calculator.payment.interest | currency:'$':0}}
×
Months remaining on your mortgage term {{calculator.payment.remaining}} month{{calculator.payment.remaining > 1? "s" : ""}}
÷
Months in a year 12 m
Estimated result = {{calculator.payment.total | currency:'$':2}}

You want to prepay {{calculator.portion | currency:'$':0}}
Your current interest rate is {{calculator.mortgage.rate}}% Your current mortgage rate is {{calculator.mortgage.rate}}%

What's included in your prepayment charge?

Here's how we calculated your estimated prepayment charge, based on the information you gave us:

First, we count the number of days left from the date of your prepayment to the maturity date and we round it down to either 30, 60 or 90 days (the maximum is 90 days). We then calculate the interest you would owe over that period of time using your annual interest rate for the amount being prepaid. The result is the three months interest amount that you will have to pay. This amount may be less than three months interest if your prepayment occurs less than 90 days from the maturity date. Your prepayment charge is based on the amount that exceeds 15% of your original principal amount.
Amount you want to prepay {{calculator.portion | currency:'$':0}}
×
Current rate{{calculator.mortgage.rate}}%
÷
4
Estimated result = {{calculator.payment.total | currency:'$':2}}
— Estimated Cashback charge

Your estimated cashback charge is {{calculator.cashback.payment | currency:'$':2}}

The cashback amount {{calculator.cashback.total | currency:'$':2}}
×
Months remaining on your mortgage {{calculator.payment.remaining}} month{{calculator.payment.remaining > 1? "s" : ""}}
÷
Total months remaining for your term {{calculator.mortgage.term * 12}} m
Find out even more about the process >

It's important to note that additional fee(s) may be charged when making a prepayment or discharging your mortgage. These fees may include:

  • A Discharge Fee
  • This is an administration fee for preparing the discharge request

  • A Reinvestment Fee
  • This applies if you prepay your mortgage in full during the first term (e.g., you never renewed your mortgage)

  • An Assignment Fee
  • This applies if you request to assign your mortgage to another financial institution

Please note provincial registration fees may apply as well.

View Prepayment FAQs


*The Mortgage Prepayment Calculator is for an estimate only.