TD Bank: 2024 Home Equity Review

Benefits

• The home equity interest rates from TD Bank are similar to rates from other top home equity lenders. Banking customers with a personal checking account receive a 0.25 percent rate discount on HELOCs. The same discount is available to home equity loan borrowers who set up autopay from a personal checking or savings account.
• The bank offers a fixed-rate option on the HELOC, which can help you avoid a potential hit to your budget with a variable rate.

Drawbacks

• TD Bank’s home equity products are available only to borrowers in some states.
• The bank’s HELOC amounts start at $25,000, while its home equity loan amounts start at $10,000. These thresholds might be too high for some borrowers.

Home equity loan products offered

TD Bank offers two home equity products: a HELOC and a home equity loan.

The HELOC comes with a variable rate, although a fixed-rate option is available if you’d like to lock in some or all of your balance (you’ll need to lock a minimum of $5,000), with no fees. Like most HELOC products, you’ll be able to draw from the line of credit for 10 years, then repay the balance over 20 years. There’s no minimum draw requirement, but the minimum credit line is $25,000.

In contrast, the fixed-rate home equity loan requires you to borrow a minimum of $10,000 from your equity. The repayment terms range from five years to 30 years.

Types of fees charged

TD Bank charges an origination fee of $99 for both its home equity and HELOC products. Depending on the type of loan and property, you might be subject to other upfront fees, as well.

Further, its HELOC product has an annual fee of $50, except 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. There are also closing costs on lines of credit greater than $500,000, and there could be a discharge fee when refinancing a home equity loan or line of credit.

Borrowers holding a TD personal checking account receive a 0.25% interest rate discount.

How to qualify for a home equity loan with TD Bank

You’ll need a credit score of at least 660 for a TD Bank home equity loan or line of credit.

How to apply with TD Bank

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

How Bankrate scored TD Bank

• Methodology

  To determine a home equity lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; introductory APR - 20%
  • Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10% 
  • Borrower experience: Rate transparency - 45%; convenience - 35%; customer service - 10%; fixed-rate options - 10%

  Learn more about our methodology.