TD Bank
- Home equity loan, HELOC, interest-only HELOC, rate-lock HELOC
- HELOCs: As low as 8.34%; Home equity loans: As low as 7.99%
- N/A
- 800-815-6849
TD Bank is one of the 10 largest banks in the US, offering just about every financial product: home equity loans and home equity lines of credit (HELOCs), mortgages, credit cards, checking accounts, CDs and more.
The bank is headquartered in Cherry Hill, New Jersey, and operates more than a thousand branches in the Northeast, Mid-Atlantic, the Carolinas and Florida. While TD Bank’s nationwide availability is relatively limited, it made our list of the best home equity loan and HELOC lenders thanks to its variety of product offerings, smooth online user experience and accessible customer service.
TD Bank: At a glance
| Types of home equity loans | HELOC, interest-only HELOC, rate-lock HELOC, home equity loan. |
|---|---|
| APR | HELOC: As low as 8.34% for HELOCs greater than $200,000 on primary and secondary homes. Home equity loan: As low as 7.99% for home equity loans between $100,000 and $499,000. |
| Loan amounts | HELOCs: From $25,000 Home equity loans: From $10,000 (loan amounts less than $25,000 only available on primary residences). |
| Credit score requirements | Not specified, though the bank’s online tools suggest that borrowers will need at least a 660 credit score. |
| Repayment terms | 10-year draw period and 20-year repayment period for HELOCs; 5-yr, 10-yr, 15-yr, 20-yr, and 30-yr options on home equity loans. |
| Average time to close | N/A |
Closing on a home equity loan with TD Bank can’t be done online. Since you have to go in person, TD Bank is best suited to customers who live near one of the bank’s branches, which are located in these 15 states: Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont and Virginia, plus the District of Columbia.
Before you tap into your home equity with a loan from TD Bank, consider these pros and cons.
Pros
Fixed-rate flexibility: You have the option to convert a portion of your HELOC to a fixed-rate loan.
Available on just about any kind of home: You can borrow against your equity on primary and secondary residences as well as investment properties.
Extra savings for existing customers: You can reduce your interest rate by 0.25% using autopay with a TD checking or savings account.
Cons
Extra costs: $99 origination fee on both products, plus a $50 annual fee on HELOCs. An early termination fee (up to $450) applies if you pay off and close your HELOC within 24 months of opening it.
In-person closings: You’ll have to visit a physical bank branch to close on a home equity loan or HELOC.
Complicated tiered rate system: APRs depend on various factors, including how much you borrow, how long you take to pay it back and property type.
Home equity loan options
Home equity loan: TD’s home equity loan requires a minimum loan amount of $10,000. It’s worth noting that home equity loans under $25,000 are available only for primary residences. You’ll get the money in a lump sum, and you can choose to pay it back in five, 10, 15, 20 or 30 years.
HELOC: TD’s HELOC option requires a minimum loan amount of $25,000, although you’ll pay only for what you use. It’s split up into a 10-year draw period and a 20-year repayment period.
Interest-only HELOC: With an interest-only HELOC, you have to pay interest only on the amount you withdraw during your draw period. Once that period ends, you’ll start making full payments on both the principal and interest.
Rate-lock HELOC: TD Bank offers a rate-lock HELOC option where you can convert up to three portions of your line of credit into a fixed-rate loan. The amount converted to a fixed rate must be at least $5,000.
Whichever type of product you choose, you can have a maximum loan-to-value ratio (LTV) of 89.99%. Interest rates will vary based on your borrowing amount and property type.
Fees
TD Bank clearly discloses the fees associated with its home loan products. Both home equity loans and HELOCs come with an origination fee of $99. You’ll pay an annual fee of $50 on HELOCs over $50,000 and closing costs on lines of credit greater than $500,000.
If you close your HELOC early (within 24 months of opening), you’ll also be subject to an early termination fee of 2% of your outstanding balance (up to $450).
There are other costs to consider, including an appraisal to verify the home’s value and subordination and recording fees.
How to qualify
To qualify for a home equity loan or HELOC with TD Bank, you must live in one of the 15 states where the bank operates. While TD Bank doesn’t publicly list its credit score requirements online, its personalized rate-matching tool indicates that borrowers need at least a 660 credit score. Additionally, your LTV ratio can’t exceed 89.99%.
How to apply for a home equity loan or HELOC with TD Bank
TD Bank allows you to apply for a home equity loan or HELOC online, over the phone by calling 800-815-6849 or in person at a bank branch.
The best way to estimate your terms so you can compare with other lenders easily is to use the bank’s personalized rate tool. After providing a few pieces of data about your property value, outstanding debt, credit score and property type, the calculator will display a range of options with monthly payment terms.
If you satisfy TD’s requirements, a loan adviser will reach out to let you know if you need to schedule an appraisal with an interior inspection. Then, you’ll move into the full underwriting process, which includes a thorough review of your finances to verify you can pay the loan back. When it’s finally time to close, you’ll sign the documents in person at a TD branch.
Customer service
- Call 800-815-6849
- Customer assistance via direct message on X (formerly Twitter) and Facebook Messenger
- Get in-person assistance at a TD Bank branch near you
