TD Bank Home Equity Review

3.3 _/5

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Home equity loan & line of credit

• High borrowing limits
• No minimum required draw from HELOC
• Lock in a fixed rate on all or part of a HELOC balance
• Discounts for current checking account customers
• High maximum combined loan-to-value

• Only available in 15 states + DC: CT, DE, FL, ME, MD, MA, NH, NJ, NY, NC, PA, RI, SC, VT, & VA
• Poor customer reviews
• Fees
• Penalties for paying off and closing HELOC early
• No prequalification with a soft credit inquiry

Rates (APR)	Starting at 7.99%
Loan amounts	At least $10,000 (home equity loan); At least $25,000 (HELOC)
Repayment terms	5 – 30 years

TD Bank offers home equity loans and lines of credit (HELOCs) with high borrowing limits and flexible rate options, but its products are only available in 15 states and Washington, D.C. It offers several benefits, including discounts for checking customers and no required minimum draw on HELOCs, but it charges fees for closing early and has limited transparency on rates and terms.

Keep reading because we’ll help you decide whether TD Bank’s home equity products align with your financial needs and goals—and help you choose an alternative if it doesn’t.

TD Bank HELOC

A TD Bank HELOC allows you to tap into your home’s equity by opening a flexible line of credit against your primary or secondary residence, with borrowing amounts starting at $25,000. TD doesn’t have a minimum draw requirement, giving you the flexibility to access funds as needed.

During the draw period, you can make interest-only payments or start paying down both the principal and interest right away. While your HELOC comes with a variable interest rate, TD Bank allows you to lock in rates on up to three balances during your draw period, helping you manage rate fluctuations.

Be aware that fees apply if you close your HELOC within the first 24 months. Once the draw period ends, after 10 years, you can’t borrow any more funds and will begin the repayment phase.​

Rates (APR)	Starting at 6.99%
Rate discounts	0.25% with a TD personal checking account
Loan amounts	Starting at $25,000
Repayment	10 yr. draw / 20 yr. repayment
Maximum LTV	Up to 89.9%

What fees does TD Bank charge for a HELOC?

TD Bank assesses several fees:

• If your HELOC is $50,000 or more, a $50 annual fee applies, but it’s waived for the first year.
• You’ll also pay a $99 origination fee when you open the line of credit.
• If you decide to pay off and close your HELOC within the first 24 months, TD Bank charges a 2% early termination fee, capped at $450.
• You could also pay a discharge fee if you refinance your HELOC.

TD Bank also offers a fixed-rate home equity loan.

TD Bank home equity loan

If you prefer a one-time lump sum loan against your home’s equity with predictable monthly payments, a TD Bank home equity loan could be a better option. You can borrow $10,000 or more against your primary or secondary residence, with repayment terms ranging from five to 30 years at a fixed interest rate.

Your maximum combined loan-to-value (CLTV) ratio can go up to 89.9%, depending on your credit score, property type, loan amount, and any liens on the property. This gives you flexibility in borrowing while offering stable payments over the life of the loan.

Rates (APR)	Starting at 4.59%
Rate discounts	0.25% discount with a TD personal checking account
Loan amounts	$10,000 and up
Repayment periods	5 – 30 years
Maximum LTV	Up to 89.9%
Fees	$99 origination fee

Read More

List of home equity companies, Best HELOCs, Best home equity loans

Pros and cons of a TD Bank HELOC or home equity loan

Pros

• High maximum home equity borrowing limits

  Borrow $500,000 or more depending on creditworthiness

• No minimum draw from your open HELOC line

  Several popular HELOC lenders require a minimum draw at closing, but TD Bank doesn’t

• Lock in a fixed rate on all or part of a HELOC balance

  This can be an excellent option in a high-rate environment

• Discounts for current checking account customers

  Get a 0.25% loyalty discount

• High maximum CLTV

  Depending on your loan amount and creditworthiness, your combined loan-to-value ratio can be as high as 89.9%

Cons

• Not available in all states

  Only available in 15 states + DC: CT, DE, FL, ME, MD, MA, NH, NJ, NY, NC, PA, RI, SC, VT, & VA

• Multiple fees for the HELOC

  Origination fee applies to HELOC and home equity loan

• Penalties for paying off and closing HELOC early

  2% early termination fee, capped at $450, to pay off and close your HELOC within the first 24 months

• Must apply to see optional loan terms

  No ability to see your prequalified rates and terms with a soft credit check

• Negative customer feedback

  TD Bank earns poor customer reviews on all the platforms we checked

Read More

List of home equity companies, Best HELOCs, Best home equity loans

TD Bank alternatives

If TD Bank’s home equity options don’t quite match what you’re looking for, several other lenders are worth considering. Whether you’d prefer a lender with a broader geographic reach or fewer fees, exploring other choices can help you find the best fit for your needs.

Take a look at the table below to see our top-rated home equity lenders. You’ll find options catering to different preferences. This will help you weigh all your choices and find the ideal home equity solution.

What do TD Bank’s customers say about the company?

Source	Rating	Number of reviews
Better Business Bureau	1.13/5	265
Trustpilot	1.4/5	2,313
Google	2.7/5	101

Understanding the products and services a lender offers is important, but it doesn’t give you a complete idea of how well that bank will meet your needs. It also helps to consider firsthand reviews and reports from current and past customers. 

Take the Better Business Bureau (BBB), for example. TD Bank’s BBB rating is an A+, and it is an accredited lender through the agency. However, the ratings give the bank a low overall score—and TD has had 1,748 BBB complaints closed in the past three years. Customers mention issues with general bank services, such as checking and savings accounts, not just home equity products.

Like TD Bank’s BBB ratings, Trustpilot and Google consumers have commented on and reviewed the bank for many products and services. Common issues relate to in-branch customer service and difficulty getting help with accounts over the phone.

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

Primary residences or second homes, with one to four units, are eligible property types for a TD Bank home equity product. The property must be located in one of the 15 states listed above or in Washington, D.C.

TD Bank provides these basic eligibility guidelines but doesn’t fully disclose additional criteria, such as its minimum credit score and minimum income requirements.

You might need to speak with a TD Bank representative to understand the requirements. Your credit history, income stability, debt-to-income ratio, and the specific details of your property could all play a role in the decision-making process.

How do I apply with TD Bank?

Follow the steps below to apply for either product:

1. Create an account. This involves providing your name and email address and creating a username with a password. Be sure you have access to that email account; TD Bank will send you a time-sensitive code to confirm your email address before you can proceed.
2. Provide your contact information, and link your checking account if you’re a TD customer.
3. Fill out sections about your property and how long you’ve lived there, and provide information about your citizenship status, your marital status, and whether you have dependents. 
4. Choose a HELOC or home equity loan, and note your primary purpose for the loan.
5. Answer several questions about the property, including its use, who owns the title, whether anyone else will be on the new loan, and whether the home is held in a trust.
6. Choose your desired loan amount. TD Bank will automatically populate the estimated loan amount available. In our case, it showed an estimated maximum CLTV of 75%, but this may vary based on your home value, location, and creditworthiness.
7. Provide your income information, including employment status, military status, and additional income sources. 
8. Fill out your asset and liabilities information. This section will also ask about your homeowners insurance, whether you collect rental income on the property, and how much you owe to your current mortgage lender.
9. Answer a few more disclosure questions regarding your finances and the property. Once that’s complete, you can review your answers and make any changes.

TD Bank requires you to enter your Social Security number before submitting your home equity loan application. After a hard credit check, TD Bank will determine your eligibility and the terms it will offer. It doesn’t offer prequalification with a soft credit check. 

The online loan process is lengthier than with many other lenders based on the information you’ll input. If you have all the relevant information, expect it to take 10 to 15 minutes to complete. 

How does TD Bank determine how much I can borrow?

The amount you can borrow with a home equity loan or HELOC from TD Bank depends on your home’s current market value and the remaining balance on your mortgage. This helps establish how much equity you have. TD Bank allows you to borrow up to 89.9% of your home’s value minus any liens. The exact amount may be lower based on your home’s location and value as well as your income and credit history.

While TD Bank doesn’t provide a specific upper borrowing limit for home equity loans or HELOCs, there are different terms for amounts above and below $500,000. During the online application process, TD Bank may auto-populate a maximum loan amount up to 75% of your loan-to-value ratio (LTV), which could vary by borrower.

What does the appraisal process look like?

TD Bank might require a home appraisal to determine the current market value of your home and how much equity you can borrow. This appraisal is conducted by a third-party appraiser who will assess your home’s value based on its details, local market conditions, and recent sales of similar properties in your area.

TD Bank will arrange and cover the cost of the appraisal, but if you take out a loan over $500,000, you may need to pay some of the closing costs.

Does TD Bank have a customer service team?

You can reach TD Bank if you need assistance with your home equity account or want to apply for a new one. 

• By phone: Call 1-800-815-6849 to speak with a TD Bank representative about your home equity financing options and even begin an application. 
• Facebook Messenger: You can chat with a TD Bank representative by reaching out through the bank’s Facebook page, where you can ask questions.
• Visit a local branch: If you live near a brick-and-mortar TD Bank branch, you can speak with a representative in person. They can answer your questions, help walk you through a home equity application, or assist you in managing an account.
• X (formerly Twitter): Send TD Bank direct messages through X, where customer service representatives can answer questions or accept your comments.

How we rated TD Bank

We designed LendEDU’s editorial rating system to help readers find companies that offer the best home equity products. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and online transparency of benefits and terms.

We compared TD Bank to several home equity lenders, using hundreds of data points from company websites, public disclosures, customer reviews, and direct communication with company representatives. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. Our take is represented in our rating, recapped below.

Product	Rating
TD Bank home equity loan or line of credit	3.3/5