TD Bank: 2021 Home Equity Review

Founded in 1955, TD Bank offers home equity loans, home equity lines of credit (HELOCs), mortgages, personal loans, credit cards and banking products and operates more than 1,200 locations along the East Coast.

Consumers can apply for home equity products through the bank online, by phone or in person at a branch. But TD Bank prioritizes face-to-face interactions and in-person support for prospective borrowers. TD Bank’s limited reach means that it’s not the right choice for everyone, but borrowers within its service area can expect good service and low rates.

Interest rates, repayment terms and more for TD Bank’s home equity products vary by location. The details presented below are based on the New York City area.

TD Bank snapshot

Benefits

Here are some of TD Bank’s biggest benefits:

• Competitive interest rates: Interest rates from TD Bank are similar to rates from the top home equity lenders. As of late February 2021, its home equity fixed-rate loans start as low as 4.59 percent APR in some states, while its variable-rate HELOCs start as low as 3.74 percent APR.
• Fixed-rate HELOC option: Borrowers who are interested in a HELOC but wary of variable interest rates and fluctuating monthly payments may opt for TD Bank’s fixed-rate HELOC option.
• Rate discount opportunities: Current TD Bank customers with a personal checking account receive a 0.25 percent rate discount on HELOCs. Those seeking a home equity loan receive a 0.25 percent discount for setting up autopay from a TD Bank personal checking or savings account.

Drawbacks

Before applying, it’s also important to consider some of TD Bank’s drawbacks:

• In-person closing: While the application for a TD Bank home equity loan or HELOC can be completed on the bank’s website, borrowers will need to meet with the lender in order to close on their loan.
• Limited availability: TD Bank’s home equity products are available only to borrowers in the areas it serves on the East Coast.
• Minimum loan amount: Home equity loans and lines of credit start at $25,000. That may be too high for some borrowers.

Types of fees charged

TD Bank charges an origination fee of $99 for both its home equity and HELOC products, plus an appraisal fee of up to $1,500, a credit report fee of $0.50 to $15 and a flood determination fee ranging from $5 to $25. Depending on your loan type and the property you’re using to secure the loan, you may also be on the hook for insurance costs, recording fees and closing services fees.

Its HELOC product has an annual fee of $50 except for on loan amounts less than $50,000. There’s an early termination fee of 2 percent of the outstanding principal balance up to $450, which applies if a HELOC is paid off and closed within 24 months from the date the account is opened. Closing costs apply on lines of credit greater than $500,000, and there could be a mortgage discharge fee when refinancing a mortgage or home equity loan or line of credit.

Loan products offered

TD Bank offers two home equity products: a home equity loan and a home equity line of credit.

Home equity loan

The fixed-rate home equity loan from TD Bank allows you to borrow a minimum of $25,000 from your home equity. Fixed rates start as low as 4.59 percent in some states, and repayment terms range from five to 30 years.

The lender uses an automated valuation system to estimate the value of your home. It will have a local appraiser visit the property in cases when automated valuations aren’t available.

HELOC

TD Bank’s HELOCs come with variable rates as low as 3.74 percent APR. A fixed-rate HELOC option is also available if you want to lock in some or all of your HELOC balance, with no fees. The minimum amount you can lock in is $5,000, but it’s a great option if you spot a low rate.

HELOCs allow borrowers to take out as much as they need, whenever they need it, up to the credit limit. There’s no minimum draw amount required, but the minimum credit line is $25,000.

TD Bank doesn’t specify a draw period or a repayment period. It depends on the amount and terms of your specific loan.

How to qualify for a home equity loan with TD Bank

You need a credit score of at least 740 to be approved for a TD Bank home equity loan or line of credit, and you’ll likely need a low debt-to-income ratio as well.

How to get started

You can apply for a TD Bank home equity product online, by phone at 800-815-6849 or by visiting a branch.

Here’s a breakdown of what the full process looks like:

1. Apply online, by phone or in person.
2. Receive your loan estimate.
3. Schedule an appraisal and interior inspection with the help of your lending specialist.
4. If approved, receive a written commitment of terms and conditions.
5. Provide documentation for financial verification.
6. Meet with the lender to finalize the transaction, sign paperwork and arrange to disburse the funds.

How Bankrate rates TD Bank

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.