Zondo answered
PropTrust’s mortgage dragon
penalty
I want to break my TD mortgage 3 years in. What is the penalty?
TD uses Interest Rate Differential (IRD) calculated against their POSTED rate, not the rate you actually got. On a $500K mortgage at year 3 with 2 years left, that is typically $12,000–$18,000. Monolines (First National, MERIX, MCAP) calculate IRD against the discounted rate — same scenario runs $3,000–$5,000.
What your bank didn’t say
The "Big 6 IRD" calculation is the single biggest hidden cost in Canadian mortgages. Your bank will quote you the penalty without explaining it is 4x what a monoline would charge for the same break. They are not allowed to lie about it — but they are allowed to not bring it up.
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PropTrust is a Canadian property data platform. We are not a lender, broker, real estate agent, landlord, or paid advisor. This is information about how the rules work — not advice on your specific situation. For that, talk to a licensed professional.