TD Insurance Decreasing Deductible – What are the Details? (Canada insurance plans)

Picture of TD insurance logo to highlight TD insurance decreasing deductible.

Your coverage comes with extras such as the TD insurance decreasing deductible. This is what I received in my email a couple of days ago. I thought it was interesting as I had never heard of your deductible decreasing for your auto insurance unless you paid more in monthly premiums. Normally I would consider this spam and delete the email. But I was curious and thought I would do a little digging. What exactly is a decreasing deductible, and is it legitimate?

TD Insurance Decreasing Deductible – What is it?

Basically a decreasing car insurance deductible is a reward for good driving. Each year you you do not have to file a claim for an accident your premium decreases by 10%. Their website uses an example of if you have a $500.00 deductible and you are claim free you first year, your deductible reduces to $450.00. If you have another claim free year, your deductible drops to $400.00. Another year claim free, it reduces to $350.00. This is pretty cool, because the 10% is based on the original amount of deductible and not off current amount, meaning you save even more!

How Does it Work?

First you do not have to pay any extra to get the benefit. Also, it is automatic so if you have a claim free driving record when you have to renew your policy, the deductible will drop. Here are some other details from their website below:

-Applies to Collision or All Perils coverage with deductibles of $500 or lower.

-Earn a 10% decrease on your original deductible for each claim-free year until your deductible reaches $0.

-After you make a claim during a policy term, your deductible will return to its original amount at your next renewal. For the purpose of this feature, these events won’t be considered a claim: glass breakage of $200 or less, not at-fault collision, or hit and run.

-Even if you change vehicles, your lowered deductible will apply if replaced within 30 days.

Conclusion

The TD insurance decreasing deductible is a nice little benefit to have. Normally, it seems that you are always paying more for auto insurance so it is nice to potentially pay a little less. The amount of savings is not huge but if you have a deductible of $500.00 and you do not file a claim for 10 years and then have an accident that you have to make a claim. You could save $500.00! That is something for sure. Obviously it is better not to have an accident but it is good to know that there is some potential savings if you do have one. Not bad at all.

Current Canadian Mortgage Rates as of September 14, 2020

A graph to denote fluctuating current Canadian mortgage rates.

What are current Canadian mortgage rates in right now? It is an interesting question which will take much research as each bank has their own rates. This can be a long and arduous process. However, I thought I would post some currents rates of some of Canada’s big banks to help make things a bit easier for you guys. So without further ado, here are the current mortgage rates in Canada below:

Current Canadian Mortgage Rates

Royal Bank of Canada

TermSpecial OffersAPR
2 Year Fixed2.090%2.150%
5 Year Fixed2.290%2.320%
5 Year VariableRBC Prime Rate – 0.350% (2.100%)2.130%

TD Bank

TD Special Mortgage Rates

TermSpecial Rate3APR    4,   5
3 Year Fixed Closed72.19%2.23%
5 Year Fixed Closed72.24%2.26%
5 Year Fixed Closed
High-Ratio9
2.07%2.09%
5 Year Variable Closed62.05%2.07%
TD Mortgage Prime Rate is 2.60%

Scotiabank

Variable Rate Mortgages

Effective September 14, 2020

Posted Rate
Scotia Ultimate Variable Rate Mortgage – 3 Year Closed Term3.350%1
Scotia Flex Value Mortgage-Closed 5 Year Term2.650%2
Scotia Flex Value Mortgage-Open 5 Year Term5.750%3

Closed Term Fixed Rate Mortgages

TermRate
1 year3.090%
2 years3.190%
3 years3.790%
4 years4.090%
5 years4.790%
7 years5.390%
10 years5.890%

Short Term Fixed Rate Mortgages

TermRate
Open Mortgage – 6 month5.750%
Open Mortgage – 1 year5.750%
Flexible/Closed Mortgage – 6 month4.250%
Special Offer Information
1
APR 3.87%
2
APR 2.70%
3
APR 5.75%

Conclusion

Buying a house is one of the most important purchases you can make. And for most, obtaining a mortgage is necessary to make that home purchase happen. So finding the right mortgage rate for your circumstances is imperative because choosing the wrong rate could cost you thousands of dollars. So do your research; ask lots of questions; read the fine print and take an honest appraisal of what you can afford. Compare mortgage rates AND ask at the bank if they’ll match the better rates at other financial institutions. Doing so will give you the information you need to make the right decision. And, potentially save thousands upon thousands of dollars over the course of the mortgage. Happy house hunting!