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What TD Bank Offers
In terms of home equity products, TD Bank offers home equity loans and home equity lines of credit in 15 states and Washington, D.C.
Home equity products are available in the following states:
- Connecticut
- Delaware
- Florida
- Maine
- Maryland
- Massachusetts
- New Hampshire
- New Jersey
- New York
- North Carolina
- Pennsylvania
- Rhode Island
- South Carolina
- Vermont
- Virginia
TD Bank also offers cash-out refinancing if you’re looking to refinance your first mortgage instead.
Home Equity Line of Credit
TD Bank offers HELOCs of $25,000 or more with no minimum draw amounts. Only 30-year HELOC terms are available, with a 10-year draw period followed by a 20-year repayment period.
Available HELOC interest rates vary by location. For example, as of February 2024, interest rates start at the prime rate minus 0.26% (8.24%) for borrowers in Hartford, Connecticut, while borrowers in New York City pay at least the prime rate plus 0.09% (8.59%). A fixed-rate option is available to eligible borrowers.
Home Equity Loan
Home equity loans start at $10,000, and borrowers receive the funds as a lump sum. That said, loans less than $25,000 are only available for primary residences. Repayment terms of 5, 10, 15, 20 and 30 years are available, during which borrowers must make principal and interest payments.
Rates are fixed and vary by location. As of February 2024, rates start at 7.99% for a 10-year term in Hartford, Connecticut, while the minimum interest rate for borrowers in New York City, is 8.19%.
Discounts
A 0.25% rate discount is available for HELOC borrowers who have a TD personal checking account, and automatic payments aren’t required to qualify for the discount. The same discount is available for home equity loans.
Loan Servicing
According to TD Bank’s website, the lender may use third-party providers to service loans.
Customer Support
Current and prospective TD Bank customers can contact customer service by phone or by visiting a local branch. The bank has a separate customer service phone number for home equity products, which may make it easier to speak with a customer service representative and have your questions resolved more efficiently.
Consumers can also contact TD Bank via Facebook Messenger or by direct messaging the bank on X, formerly known as Twitter. TD Bank also has a virtual assistant to answer specific questions about its home equity products.
Minimum Borrower Requirements
TD Bank doesn’t publish all of its borrower qualifications online. However, these are some of the minimum qualification requirements it imposes on home equity borrowers:
Minimum Credit Score
TD Bank requires borrowers to have a credit score of at least 660 to qualify for its home equity products.
Maximum Combined Loan-To-Value Ratio
The maximum combined loan-to-value (CLTV) ratio a borrower needs to qualify for a TD Bank home equity product depends on several factors. These include the borrower’s credit history, property type, occupancy (property use), lien position and loan amount. That said, the lender’s maximum CLTV is up to 89.99% of the home’s value.
What Fees Will You Pay?
TD Bank charges some fees on its home equity products, including origination fees, annual fees and other administrative costs. These are some of the costs associated with TD Bank home equity loans and lines of credit.
Origination Fee
The lender charges borrowers a $99 origination fee for its home equity loans and HELOCs.
Annual Fee
TD Bank HELOCs come with an annual fee, which only applies to lines of credit of at least $50,000. While this fee is typically $50 per year, the exact rate is included in the borrower’s loan documents.
Appraisal Costs
TD Bank may require an appraisal as part of the lending process. These fees depend on the actual cost of obtaining an appraisal and vary by location.
Late Charge
Applicable late charges are detailed in TD Bank’s loan documents. However, late charges for home equity loans and HELOCs are typically 5% of the minimum payment due with a $10 maximum fee.
Early Termination Fee
HELOC borrowers must pay an early termination fee if they pay off and close their HELOCs within 24 months from account opening. The fee is equal to 2% of the outstanding principal balance, with a maximum charge of $450.
There’s no early termination fee or prepayment penalty on TD Bank home equity loans.
Additional Fees
Borrowers may encounter additional fees when taking out a TD Bank home equity product. These fees may include bankruptcy costs, partial lien release, payment modifications due to principal reduction, stop check payments, loan subordination and others.
Home equity loans and lines of credit over $500,000 come with additional closing costs. These fees also apply to TD Bank’s home equity products for investment properties and co-ops.
How To Apply For a TD Bank Home Equity Loan
Prospective borrowers can apply for a TD Bank home equity loan or line of credit online, by phone or with the help of a local mortgage loan officer. Here are the steps you’ll need to take:
1. Begin your application. Start your loan application online by providing information about your income, your expenses and the property you own. Once completed, a lender representative will contact you for any additional information. Likewise, a loan officer will send your loan disclosures if you meet TD Bank’s lending requirements.
2. Schedule a property evaluation. Upon meeting the lender’s qualifications, you must schedule a property evaluation, which may include an appraisal and interior inspection. TD Bank will assist with scheduling if an interior evaluation is necessary.
3. Await a written loan commitment. During the underwriting process, a loan officer will evaluate your financial profile in light of applicable loan requirements and guidelines. Once approved, the lender will send you a loan commitment that includes terms and conditions.
4. Undergo loan processing. Next, TD Bank will verify your financial information and review relevant documentation. If your loan officer requests additional information or documentation, respond quickly to keep the verification process on track.
5. Close on the loan or line of credit. Unlike some lenders, TD Bank requires borrowers to close on their home equity loans or lines of credit at a bank branch. Choose a location and meet with the lender and other necessary parties to sign the paperwork and schedule loan disbursem*nt.
What To Do If You Get Turned Down
If your mortgage application is denied by TD Bank, reach out to your loan officer and ask for the reasons behind the rejection. Lenders decline mortgage applications for various factors, such as poor credit history, high debt-to-income (DTI) ratio or insufficient employment credentials. Still, applications may sometimes be rejected due to errors or incomplete information. In these cases, addressing inaccuracies and resubmitting the application may be possible.
If your application is denied based on your credit score or DTI ratio, take measures to reduce balances and focus on making timely payments to improve your credit score over time. If your loan-to-value ratio is too high, pay down your mortgage before applying for a loan or line of credit.
Also, check your credit report for any inaccuracies and dispute incorrect information that could have a negative impact on your score. Increasing your income can also boost your chances of approval. Lastly, compare multiple lenders to find the best rates and terms and increase your approval chances.
What People Are Saying About TD Bank’s Loans
TD Bank has an A+ rating from the Better Business Bureau (BBB) and is an accredited business. The company’s customer reviews are less impressive, with a 1.09 out of five-star rating based on nearly 300 customer reviews, as of writing. Customer reviews through Trustpilot are also low, with the lender earning 1.4 out of five stars based on more than 2,000 customer reviews.
Negative reviews mention fees and poor experiences with the lender’s customer service. That said, most reviews are for TD Bank’s other products and services. A HELOC-specific review awarded the lender five stars and detailed a positive experience with customer service.
Methodology
We graded TD Bank based on features that have a meaningful impact on the cost of a home equity loan and a borrower’s experience, including interest rates, loan options, accessibility, closing time and customer service.
We award bonus points if a lender doesn’t require closing costs on its home equity products, offers a specialty rate discount, a fixed-rate HELOC option, customizable terms for its home equity products and/or a fully online application process.
Our scoring method is broken down as follows:
- Interest rate. 25%
- Time to close. 20%
- Accessibility. 20%
- Customer service experience. 20%
- Loan options. 15%
- Bonus points. Up to 25 points
We chose to focus on these core elements to bring forward lenders that offer the most competitive rates while also providing a satisfactory customer experience accessible to borrowers of all financial backgrounds. We believe this scoring system best reflects consumers’ top priorities when comparison shopping for mortgage lenders.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Mortgage Lenders.
