TD Bank: 2025 Home Equity Review
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At a glance
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Loan amount
$10,000 minimum for home equity loan; $25,000 for HELOC
Min. credit score required
660
Repayment terms
10-year draw period and 20-year repayment term for HELOC; 5-30 years for home equity loan
Funds available in
2.5 days
TD Bank stands out for its range of offerings, including home equity loans and variable-rate HELOCs, on a range of properties. It also features highly transparent rates and sterling customer service. But its loans can be pricey and — more to the point — unavailable if you don’t live on the East Coast.
Pros and cons of TD Bank
Pros
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TD Bank’s HELOCs and home equity loans let borrowers access nearly 90% of their home’s value, higher than the industry standard.
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Financing available on primary and secondary homes and investment properties.
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TD Bank covers closing costs on most loans. HELOC customers with a personal TD checking account can get a 0.25% rate discount.
Cons
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Limited footprint: TD Bank’s home equity products are available only to borrowers in 15 states.
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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.
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Lots of fees: TD Bank charges an origination fee, a $50 annual fee for loans under $50,000 and an early termination fee.
TD Bank overview
Since its founding in 1855, TD Bank (short for Toronto-Dominion Bank) has grown from one of Canada’s first financial institutions into one of North America’s largest banks, serving over 27 million customers. The U.S.-based TD Bank subsidiary is the 10-largest commercial bank in the country, operating primarily on the East Coast in 15 states and Washington, D.C. It offers a range of retail products, including home equity loans.
In 2024, the Consumer Financial Protection Bureau (CFPB) ordered TD Bank to pay almost $8 million in restitution to tens of thousands of customers. It had shared error-ridden or fraudulent information about them with consumer reporting agencies, negatively impacting their credit histories.
Home equity 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 (a minimum of $5,000), with no fees. 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. The repayment terms range from five years to 30 years.
Both home equity products allow you to access up to 89.99 percent of your home’s value. You also don’t have to pay closing costs for HELOC or HELoans less than $500,000.
How Bankrate scored TD Bank
Affordability: 3.2/5
- APR: While TD Bank offers personalized rate quotes, it doesn’t offer an introductory rate and its advertised rate is slightly higher than the APR national average.
- Fees: You have to pay closing costs on HELOCs and HELoans greater than $500,000. If your loan is more than $50,000, be prepared to pay a $50 annual fee. TD Bank also charges a $99 origination fee and an early termination fee (up to $450 or 2% of the outstanding principal balance) if you pay off or close a HELOC within 24 months of opening the account.
TD Bank scores a 3.2 out of 5 for affordability because of a lack of introductory rates, higher rates than the national average and various fees.
Availability: 3.3/5
- Loan products: TD Bank offers both HELOCs and home equity loans, unlike many lenders.
- Footprint: TD Bank only has operations in the Northeast, Mid-Atlantic, the Carolinas and Florida (15 states and Washington D.C.)
- Credit score: The minimum credit score is 660, typical for home equity financing.
- Loan minimum: While TD Bank allows borrowers to take out loans in excess of $500,000, the minimum of $10,000 for home equity loans and $25,000 for HELOCs is on the high-average side.
- Draw requirement: None, unlike many lenders.
TD Bank earns a 3.3 out of 5 for availability because of its high loan limits and limited reach across the U.S.
Borrower experience: 5/5
- Rate transparency: With TD’s Home Loan Match, you see rates customized to your location (you must apply for a personalized quote). The bank also breaks down rates by loan/credit line size, term, and type of property.
- Convenience: Once approved for the loan, funds are available in 2.5 days. You can access funds online, with a Visa EquityAccess Card, home equity checks or in person at a TD Bank branch. Payments can also be made online, on the phone or transfer money from your TD checking or savings account.
- Customer service: You can apply for a loan online, on the phone or at one of TD Bank’s more than 1,000 branches. Closing on the loan must be at a TD location.
- Fixed-rate options: TD Bank offers fixed-rate home equity loans with terms ranging from 5 years to 30 years and the ability to convert all or part of your variable-rate HELOC to a fixed rate.
TD Bank scores a perfect 5/5 for borrower experience because of its flexibility in application options, ability to convert your HELOC to a fixed rate, quick access to funds and its highly transparent and detailed rate listings.
Bankrate insights
You can tap into your home equity — the difference between your home's worth and what you owe on your mortgage — with a home equity loan or a HELOC. With those funds, you can tackle a variety of expenses, like debt consolidation or home renovations. However, before you dive in, it's important to figure out your loan-to-value ratio (LTV). Lenders use your LTV to determine how much of your equity stake you can actually borrow. (It’s typically 80 percent, although some lenders allow you to access as much as 90 percent.) The amount of equity they’ll let you tap is one consideration when choosing a lender. Be it a retail bank, online lender or credit union, it may offer different home equity loan rates and terms, too. That’s why it’s important to shop around for the best deal.
TD Bank reputation
TD Bank is not rated or accredited by the Better Business Bureau amid several BBB alerts on the bank regarding their business practices. TD Bank also gets a “Bad” rating on Trustpilot based on 2,300 reviews. On the other hand, TD Bank ranked #1 in online banking satisfaction among national banks on J.D. Power’s 2024 U.S. Online Banking Satisfaction Study.
What consumers say about TD Bank
On Bankrate, customers award TD Bank largely positive reviews — particularly the “quick, responsive, and easy-to-work-with” staff that ensures a “smooth” process. “I love the attention they gave me,” one gushes.
How to qualify for a home equity loan with TD Bank
TD Bank’s financing is available for one-to-four family primary or secondary residences, including co-ops. In your application, you will need to outline your income, assets and debts. TD Bank has a checklist of all the documents and information you need to provide.
A loan underwriter will then review your financial profile. A credit score of at least 660 will be needed to qualify, and you must have at least 10.1 percent equity in your home. You'll also need to schedule an appraisal, which may include an interior inspection of your home.
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.
Be prepared to provide information on your work history, pay stubs, tax returns, W2 forms and any sources of income. If you are using the funds to pay bills or debt, you will need to provide TD Bank with the following information before or at the closing of the loan: the payoff amount, the payee name, the account number and the billing address.
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