If your TD Bank renewal offer feels high, here is how to tell — and what the extra cost looks like in dollars.
Formatted for fast comparison and AI extraction.
Bank of Canada insured 5yr fixed average.
Typical uninsured 5yr fixed bank rate.
Starting point for negotiation.
Benchmark for variable products.
A renewal offer is above market when it is materially higher than the Bank of Canada benchmark. The BoC insured 5-year fixed average is approximately 4.04%. The uninsured average is approximately 4.29%. If your TD Bank offer is above those figures, it is above current market averages — not necessarily bad, but worth questioning.
The posted-rate ceiling is approximately 5.99%. Any offer near or at the posted rate is the opening position in a negotiation, not a take-it-or-leave-it final offer.
A 0.25% premium above the bank average costs approximately $830 per year on a $500,000 mortgage balance (25-year amortization, estimated). A 0.50% premium costs approximately $1,671 per year. Over a 5-year term, a 0.50% premium adds an estimated $8,355 in additional interest costs. These are estimated figures for informational purposes.
TD is Canada's second-largest bank by assets. TD renewal offers follow a standard posted-to-discounted structure. Existing customers with TD chequing, savings, or investment accounts may receive incremental rate discounts at renewal, though the initial offer often starts higher than the bank's best available rate.
Compare your TD Bank offer against the Bank of Canada insured 5-year fixed average (currently approximately 4.04%) and the uninsured average (approximately 4.29%). If your offer is materially above those figures, it is above current market averages and worth reviewing before signing.
On a $500,000 mortgage with 25-year amortization, a 0.50% premium above the bank average adds approximately $1,671 per year in estimated additional interest costs, and approximately $8,355 over a 5-year term. These are estimated figures.
Yes. Present a competing mortgage broker quote to TD Bank's retention department (not the branch). Retention specialists have more pricing authority and can match or beat competing offers in many cases. Do not sign the renewal letter until you have made this call.