TD's new flexible payment features

Last Week TD Canada Trust introduced additional flexible payment features that will give customers more choice and control over their lives when they really need it.


■Pay down your mortgage ahead of schedule and you may have the ability to reduce your payments later for up to 4 months


New and renewing customers who pay down their mortgage ahead of schedule may qualify to later take advantage of a temporary reduction in their regular mortgage payment amount, an option that may be helpful in the event of short-term income reduction

■Pay down your mortgage ahead of schedule and you may have the ability to take a break later for up to 4 months


By paying ahead, not only do you get the benefit of paying off your mortgage faster, you also have more flexibility and control and may qualify to take a temporary break later when you really need it. This added flexibility can make things easier in many situations such as a maternity leave, caring for a loved one or temporary job loss.

■Pay down your mortgage on schedule and you may have the ability to defer or reduce a payment later


A major event can throw anyone off track. If you've been paying your mortgage on schedule and are unexpectedly facing a major expense or an unanticipated reduction of income, at TD Canada Trust you may be able to defer or reduce one monthly mortgage payment a year up to four times during the life of their mortgage.



Interest continues to accrue during each of these events and is added to the outstanding balance at the time of each regular payment date.


ADDITIONAL INFORMATION:

Frequently Asked Questions below:



What is Skip a payment?


Customers can skip the equivalent of one monthly mortgage payment per calendar year up to a maximum of four monthly mortgage payments over the life of their mortgage (Amortization Period).


What is a Payment Reduction?

There are two types of Payment Reductions:

1. Prepaid Payment Reduction:
Mortgage customers who have taken advantage of prepayment privileges and have paid down their mortgage balance ahead of their contractual amortization schedule are eligible for a Payment Reduction. The period of time that a customer can take a Payment Reduction is dependent on the prepaid amount accumulated and the current Principal and Interest Payment to a maximum of 4 monthly payments.



2. Non prepaid Payment Reduction:
This feature applies to Mortgage customers who would like to reduce the equivalent of one regular monthly Principal and Interest mortgage payment without having to prepay. Customers can reduce the equivalent of one monthly mortgage payment per calendar year up to a maximum of four monthly mortgage payments over the life of their mortgage (Amortization Period).



What is a Payment Vacation?
Mortgage customers, who have taken advantage of prepayment privileges and have paid down their mortgage balance ahead of their contractual amortization schedule, are eligible for a Payment Vacation. The period of time that a customer can take a Payment Vacation which cannot exceed 4 months and is dependent on the prepaid amount accumulated and the current Principal and Interest Payment


Qualifying for flexible mortgage payment features
Customers must meet the following conditions and obtain TD approval:



A)  Customer's mortgage and other credit must be in good standing at all times, for all features


B)  Mortgage balance must not exceed the lesser of 90% loan-to-value (LTV), or the original principal amount borrowed, for all features at the time of request


C) Customers must have made additional payments by either lump sum or increased frequency to be eligible for a prepaid reduction or vacation features.


D)  Must be new mortgage customers or current customers who renew their mortgage on or after January 24th



Note that customers are required to continue to pay their realty taxes and creditor insurance payments, if applicable.