TD Bank: 2020 Home Equity Review

Founded in 1955, TD Bank offers home equity loans and lines of credit, mortgages, personal loans, credit cards and banking products.

Headquartered in Cherry Hill, New Jersey, the bank operates nearly 1,300 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 prioritizes face-to-face interactions and in-person support for prospective borrowers.

“We believe the human element is critical in providing personalized guidance to borrowers,” says Jon Giles, head of home equity lending at TD Bank. He says that customers can find home equity experts in all of their TD Bank stores who can answer questions and help complete an application.

Lender snapshot

If you’re interested in getting a home equity loan or home equity line of credit (HELOC) from TD Bank, here are some key facts to know about the lender before you apply:

• Offers home equity loans and HELOCs to borrowers on the East Coast
• Requires a minimum FICO credit score of 660
• Offers fixed-rate home equity loans and variable-rate HELOCs with a fixed-rate option
• Applications can be filled out online, by phone or in person

Pros and cons

Looking a little closer at the details of TD Bank’s home equity products, here are some of the biggest benefits and drawbacks to consider:

Pros

• Competitive interest rates: Interest rates from TD Bank are similar to rates from the top home equity lenders. As of late August 2019, its home equity fixed-rate loans start as low as 4.29 percent APR, while its variable-rate HELOCs start as low as 4.24 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.
• Personalized service: Borrowers seeking face-to-face support can receive a call within 48 hours of submitting an application from a TD representative who will walk through the application and answer any questions. They can also visit a branch and speak with a home equity expert.
• 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 personal checking or savings account.
• High borrowing limits: Homeowners can borrow up to 89.9 percent of their home’s value.

Cons

• The loan process isn’t entirely online: 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. According to Giles, the bank will be rolling out a new digital experience later in 2019 that will improve the online application process. “We’re focused on creating a seamless digital experience for borrowers that will allow them to apply from any device, anywhere, anytime,” Giles said.
• Limited availability: TD Bank’s home equity products are only available to borrowers in the areas it serves on the East Coast.
• Minimum loan amount: Home equity loans and lines of credit from start at $25,000. That may be too high for some borrowers.

Mortgage products

Home equity loan

The fixed-rate home equity loan from TD Bank allows you to borrow up to 89.9 percent of your home’s value. It has a minimum loan amount of $25,000. Fixed rates start as low as 4.29 percent. 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.

Generally, closing times range anywhere from 30 to 45 days. Approval response and closing times vary by customer, Giles said. Borrowers who prepare their paperwork early—income verification documents, bank statements, tax returns and W2s, for example—will see faster approval.

HELOC

TD Bank’s HELOCs come with variable rates at low as 4.24 percent APR. A fixed-rate HELOC option is also available. Rates vary by state, loan amount, term, property type and property use.

You can choose to lock your rate on all or a portion of your line of credit with no setup fees. The minimum amount for which you can lock your line rate is $5,000.

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 repayment period. It depends on the amount and terms of your specific loan.

Approval and closing times are the same as the bank’s home equity loan product; they generally vary from 30 to 45 days. Borrowers who prepare their paperwork early will have faster response times.

Lender fees

TD charges an origination fee of $99 for both its home equity and HELOC products. Closing fees may range from $750 to $1,350 for loans or lines of credit secured by a co-op.

It charges an appraisal fee of anywhere from $0 to $1,500, a credit report fee of $0.50 to $15, and a flood determination fee ranging from $5 to $25.

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.

Borrower requirements

You need a credit score of at least 660 to be approved for a TD Bank home equity loan or line of credit.

The lender has a maximum debt-to-income ratio of 49 percent for primary residences, with a maximum of 43 percent for second homes and investment or rental properties. Borrowers can have a maximum combined loan-to-value ratio, or CLTV, of 89.9 percent.

It doesn’t specify a cash-in-reserves requirement, but applicants need to provide proof of financial information, go through a home appraisal and submit other documents at the lender’s request.

How to apply

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

To get started online, you can visit the TD Bank website and click “Apply Now.” After that, you can get through the application in six steps by filling in the following information:

1. Loan information
2. Personal information
3. Income and employment
4. Personal net worth
5. Monthly expenses
6. Review information

If you have questions about the loan application while applying online, you can call and talk to a home lending specialist.

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

1. Apply online, by phone or in person
2. Receive your loan estimate in the mail—generally within a few business days
3. Schedule an appraisal and interior inspection with the help of your lending specialist
4. If approved, you’ll receive a written commitment of terms and conditions
5. Lender verifies financial information, collects documents and reviews the property appraisal
6. Meet with the lender to finalize the transaction, sign paperwork and arrange to disperse the funds

Get started

If you’re interested in getting a home equity loan or HELOC from TD Bank, you can start the process online, by phone (800-815-6849) or at a branch. Lending specialists are available by phone Monday through Friday from 8 a.m. to 10 p.m. EST, and Saturday and Sunday from 8 a.m. to 8 p.m. EST.

If you have general questions, customer service is available 24/7, 365 days a year at (888) 751-9000. You can also visit a TD branch or ask a question on the bank’s website.

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.