The bank’s mortgage portfolio grew slightly from $270.5 billion in the fourth quarter of 2024 to $270.9 billion, while its Home Stock Line of Credit (HELOC) portfolio shares reached $124.2 million, up from $123 billion in the previous quarter.
Despite moderate data, TD remains optimistic about future growth, suggesting strategic changes are expected to drive stronger performance in the coming quarters.
“We love this business, we want to grow, and we will continue to compete to win profitable businesses,” Sona Mehta, head of personal banking at TD Canada, said on the earnings call.
Mehta stressed that TD is a “multi-channel lender for the pass cycle” and it serves as a “huge influence” of banks in the market. “Especially over the past few quarters, we have been working to improve our market approach, especially in our proprietary channels,” she added.
As part of the bank’s ongoing efforts to strengthen its position, TD has introduced new roles, including firm experts and investment experts to its highest opportunity branches.
“We have earnestly strengthened the integration between the branch office and the mortgage sales force. We have seen really promising results,” Mehta said.
Referees from branches to mortgage sales team doubled the quarter-quarter, converting into $1 billion in funding, marking the best Q1 recorded in TD’s mobile mortgage experts (MMS) team.
“Now, overall growth will vary from quarter to quarter, but fundamentals are absolutely pointing in the right direction,” she noted. “I think you usually see lower seasonality in the first quarter, but it’s a good book in the end. We compete to win the profitable business. [and] We’ve seen very good results in proprietary channels. ”
TD’s upcoming mortgage renewal
Like other big banks in Canada, TD’s mortgage portfolio will face a wave of renewals in the coming years, with $110.6 billion in fiscal 26 and $11.9 billion in fiscal 27.
By 2027, about three-quarters of TD’s total amortized mortgage portfolio will renew. Many of these borrowers locked in fixed interest rates at rock bottom levels during the pandemic, and they will face increased payments as they renew their visas in a higher interest rate environment.
The average amortization length of TD is normal
TD also reported ongoing normalization of the remaining remaining amortization period in its mortgage portfolio.
As one of Canada’s major banks offers fixed-pay variable-rate mortgages, such as Royal Bank of Canada and BMO, TDs are still paying stable monthly while banks lower interest rates despite changes in interest rates.
As of the latest quarter, the amortization period of 8.7% of its portfolio was 35 years or more, a significant decline compared to the 27.4% peak in Q1 2023.
Remaining TD residential mortgage loans
| Q1 2024 | Q4 2024 | Q1 2025 | |
|---|---|---|---|
| 15 – 20 years | 14.1% | 16.8% | 16.8% |
| 20 – 25 years | 31.5% | 33.3% | 33.3% |
| 25 – 30 years | 24.6% | 28.9% | 28.9% |
| 30 – 35 years | 1.4% | 2.4% | 2.4% |
| 35 years and above | 19.2% | 8.7% | 8.7% |
TD earnings focuss
Q1 Net Income (Adjusted): $3.2 billion (+8% y/y)
Earnings per share: $1.97
| Q1 2024 | Q4 2024 | Q1 2025 | |
|---|---|---|---|
| Residential Mortgage Portfolio | $261.3B | $270.5B | $270.9B |
| HELOC Portfolio | $117.6B | $123B | $124.2B |
| Percentage of uninsured mortgage portfolio | 83% | 83% | 84% |
| avg. Loan Value of Uninsured (LTV) | 50% | 52% | 53% |
| Portfolio Mixed: There are variable percentages | 37% | 34% | 36% |
| % of the mortgage renewal within the next 12 months | 13% | 59% | 59% |
| Canada’s total banking industry loans | 0.14% | 0.18% | 0.19% |
| Bank of Canada Net Interest Rate (NIM) | 2.78% | 2.80% | 2.81% |
| Total terms of credit losses | $878 million | $1.109B | $1.109B |
| CET1 ratio | 15.2% | 13.1% | 13.1% |
notes: Transcripts are provided by company and/or third-party sources and cannot 100% ensure their accuracy.
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Big Bank Earnings Credit Calls Quarterly Earnings Sona Mehta TD TD TD Amortization TD Bank TD Bank Amortization TD Bank Earnings TD Bank Quarterly Earnings TD Bank Renew
Last modified: March 4, 2025
