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Home Equity

Keybank Home Equity Review

Updated Apr 05, 2023   |   7 mins read

Keybank has been around for almost 200 years and is available in 15 states. It offers various banking and lending services, including mortgages, home equity loans, and home equity lines of credit (HELOCs).

We researched Keybank’s home equity lending services to show you how they stack up against the competition.

In this review:

How does Keybank help me access my home equity?

Keybank offers two ways for homeowners to tap their home equity: HELOCs and home equity loans. Both use the built-up equity in a home as collateral. If you default on a home equity loan or HELOC, the lender can seize your home.

Home equity loans and HELOCs are popular because you can use the funds for any purpose. Interest rates are often lower than on other types of loans. For example, if you wanted to build a new swimming pool, your interest rate and repayment terms would likely be better with a home equity loan or HELOC than a personal loan or credit card.

Keybank home equity line of credit

A HELOC gives you a maximum credit limit to access any time during the draw period. A Keybank HELOC has a total draw period of 15 years, or 118 months if you live in Connecticut. 

If you borrow money during the draw period, you can make principal-plus-interest, interest-only, or fixed payments. Keybank’s HELOC offers a 0.25% interest rate discount if you make payments from a Keybank checking account. 

Many homeowners use a HELOC to pay for home repairs, remodeling projects, college costs, medical expenses, and more. 

Keybank HELOCs are available in most states. (Exceptions listed below.)

Keybank HELOC terms
Rates (APR)Variable and fixed-rate options. Rates vary depending on location.
Rate discounts0.25% discount if you have a Keybank checking and savings account.
Loan amounts$10,000 to $500,000
Draw period15 years, or 118 months for borrowers in Connecticut
Repayment period15 years
Maximum LTV80%
Minimum credit scoreNot stated
Minimum incomeNot stated
Fees$50 annual fee

Keybank home equity loan

A home equity loan is similar to a HELOC because you can borrow against your home’s value. But the structure is different: When you take out a home equity loan, you receive a lump sum.

You can use it for house projects, debt consolidation, vacations, college expenses, and more. 

To qualify for a Keybank home equity loan, you must live in one of the 15 states listed below.

Keybank home equity loan terms
Rates (APR)Rates vary depending on loan amount and location.
Rate discounts0.25% discount if you have a Keybank checking and savings account.
Loan amounts$25,000 to $500,000
Repayment periods5 – 30 years
Maximum LTV80%
Minimum credit scoreNot stated
Minimum incomeNot stated
Fees$295 origination fee. 
Late fees may vary. 
$15 non-sufficient funds fee. 
Prepayment penalty if you repay the loan within 36 months.

Pros and cons of a Keybank HELOC or home equity loan

Pros

  • 0.25% interest rate discount if you’re already a Keybank customer.
  • Multiple HELOC repayment options.
  • Long home equity loan repayment term options.
  • HELOCs available in almost every state (exceptions listed below).

Cons

  • Cannot get preapproved.
  • Poor customer reviews. (See more below.)
  • May be charged a prepayment penalty.
  • Home equity loans available in just 15 states (listed below).

If you’re unsure whether Keybank is the right lender for your home equity needs, check out our list of home equity companies.

What do Keybank’s customers say about the company?

SourceRatingNumber of reviews
Better Business Bureau1.1 out of 5 customer reviews135 
Trustpilot1.9 out of 550

Ratings collected on November 17, 2022.

Before taking out a loan, it’s crucial to vet a company’s customer service department. You may run into problems when taking out a HELOC or home equity loan, and it’s vital to know your lender cares about resolving any issues. 

It’s hard to gauge Keybank’s customer service in this category. None of the reviews on Trustpilot seem to be from HELOC or home equity loan customers. 

Though Keybank earns an A+ Better Business Bureau rating, its customer reviews are poor. One reviewer who took out a home equity loan said they had trouble getting in touch with customer service and finalizing the loan, even with an excellent credit score.

Do I qualify for a HELOC or home equity loan from Keybank?

Keybank does not state its minimum credit score or income requirements. It also doesn’t appear to offer prequalification or preapproval. You must complete a full application to get a home equity loan or HELOC. This will appear on your credit report and could decrease your credit score.

Keybank only provides home equity loans in the following states:

  • Alaska
  • Colorado
  • Connecticut
  • Idaho
  • Indiana
  • Massachusetts
  • Maine
  • Michigan
  • New York
  • Ohio
  • Oregon
  • Pennsylvania
  • Utah
  • Vermont
  • Washington

To qualify for a Keybank HELOC, you can live in any state except:

  • Alabama
  • Arizona
  • California
  • Nevada
  • Texas
  • Washington, D.C. 

How do I apply with Keybank?

  1. Enter your zip code. Start by entering your zip code on the website to ensure you are eligible for a Keybank home equity loan or HELOC. 
  2. Open a new application. If you’re an existing Keybank customer, log in to your account and start an application. If you’ve already started an application, click the “Finish a Saved Application” button. If you’re starting a new application and are not a Keybank customer, click “New to Keybank?” 
  3. Start the application. To apply, you must provide the following information: 
  • Full legal name
  • Birthdate
  • Contact information
  • Address
  • Employment information
  • Social Security number 
  • Driver’s license or other government-issued ID
  1. Wait to hear back. Once you’ve filled in that information, Keybank will notify you of the next steps. 

How does Keybank determine how much I can borrow?

One of the most important factors that affect your eligibility for a home equity loan or HELOC is your loan-to-value ratio (LTV). LTV is your current mortgage balance divided by the home’s current market value. Keybank requires customers to have at least 20% equity in their home. Its combined LTV (CLTV) limit for home equity loans and HELOCs is 80%.

Here’s how that works. Let’s say you have a $150,000 balance on a home worth $300,000. Your current LTV is 50%:

($150,000 mortgage balance / $300,000 market value) x 100 = 50% LTV

The maximum you can take out with a home equity loan or HELOC from Keybank is $90,000:

$300,000 x 80% CLTV limit = $240,000

$240,000 – $150,000 mortgage balance = $90,000

Keybank does not state its minimum credit score or income requirements. These may also affect how much you can borrow or whether you’re approved for a home equity loan or HELOC.

What does the appraisal process look like?

The lender determines your home’s market value using an official home appraisal. Lenders may require a home appraisal whenever you take out a mortgage, refinance your home, or borrow against your home’s equity.

If Keybank decides an in-person appraisal is necessary, it will hire an appraiser to visit your home, verify the square footage, and assess any updates you’ve made. The appraiser will also look at recent sale prices from comparable homes in your neighborhood to help calculate the current market value. 

Borrowers often cover the appraisal cost, but Keybank might waive this and other closing costs.

Does Keybank charge any fees?

Keybank’s fee schedule differs depending on the product.

FeeHome equity loanHELOC
Origination fee$295None
Late feeVariesVaries
Prepayment penaltyIf you repay the loan within 36 monthsNone
Non-sufficient funds fee$15$15
Annual feeNone$50
Closing feeNoneUp to $400 if using a closing agent
Documentary tax and intangible stampNoneFlorida residents pay a tax of $0.55 per $100 total line amount
Mortgage taxNoneBetween $0.50 and $2.80 per $100 total line amount

Does Keybank have a customer service team?

If you want to contact Keybank, you have several options:

  • Live chat: Available Monday through Friday, 7 a.m. to midnight Eastern time; Saturday and Sunday, 8 a.m. to 9 p.m. Eastern.
  • Phone: 1-800-539-2968, available 24/7.
  • In person: Find a location near you.