Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Home Equity TD Bank Home Equity Review Updated Jun 26, 2023 11-min read Reviewed by Stephanie Colestock Reviewed by Stephanie Colestock Expertise: Loans, insurance, real estate investing, credit, debt Stephanie is an experienced personal finance writer with more than a decade of experience as a freelancer. Learn more about Stephanie Colestock TD Bank is a regional institution that offers bank accounts, personal loans, home mortgages, investment products, credit cards, and home equity products. With roots dating back to 1855, TD Bank’s proper entrance into the U.S. banking market began in 2005 when it acquired Banknorth. Today, TD Bank operates in 15 states and the District of Columbia. It’s one of North America’s 10 largest banks by branch network. Here’s a look at the home equity products it offers to homeowners in the U.S., how much you can borrow against your property, and how to decide if a TD Bank home equity product is right for you. In this review: How does TD Bank help me access my home equity?Pros and cons of a TD Bank HELOC or home equity loanWhat do TD Bank’s customers say?Do I qualify for a HELOC or home equity loan from TD Bank?How do I apply with TD Bank?How does TD Bank determine how much I can borrow?What does the appraisal process look like?Does TD Bank charge any fees?Does TD Bank have a customer service team? How does TD Bank help me access my home equity? To pull a portion of the equity out of your primary or secondary home, TD Bank offers two products: a home equity line of credit (HELOC) and a home equity loan. TD Bank’s HELOCs have no minimum draw requirement, and you can lock in an interest rate on up to three balances. Its home equity loans have competitive interest rates and a repayment term of up to 30 years. The bank offers both products to borrowers in select states: ConnecticutDelawareFloridaMaineMarylandMassachusettesNew HampshireNew JerseyNew YorkNorth CarolinaPennsylvaniaRhode IslandSouth CarolinaVermontVirginiaWashington, D.C. TD Bank home equity line of credit With a TD Bank HELOC, homeowners can open a line of credit against the equity in their primary or secondary home. This HELOC can range from $25,000 to $500,000 (or more in some cases) with no minimum draw requirement. As you withdraw funds from the HELOC, you can choose to make interest-only payments for the duration of the draw period or to pay down both principal and interest from the beginning. Since you have a variable interest rate on your HELOC, TD Bank allows you to “lock” rates during your draw period. You can have as many as three rate-locked balances at any time. You may incur penalty fees if you pay off and close out your HELOC within the first 24 months. Once the line’s draw period ends (often after the first five to 10 years), you can no longer borrow additional funds and will enter a repayment period. TD Bank HELOC termsRates (APR)Starting at 6.99%Rate discounts0.25% discount with a TD personal checking accountLoan amounts$25,000 to $500,000 or higherDraw period10 yearsRepayment period20 yearsMaximum LTVUp to 89.9%, depending on loan amountMinimum credit scoreNot disclosedMinimum incomeNot disclosedFees$50 annual fee (only applies to HELOCs of $50,000 or more), waived the first year$99 origination fee2% early termination fee (maximum of $450) if you pay and close HELOC within the first 24 monthsPossible discharge fee when refinancing a home equity loan/HELOC or mortgage TD Bank home equity loan If you’d rather borrow a single lump sum against your home and then repay that amount monthly over a specified period, a home equity loan may be what you’re looking for. You can borrow $10,000 or more against your primary or secondary home with a TD Bank home equity loan. These loans offer a repayment period of five to 30 years with fixed interest rates. Depending on your credit history, the type of property you own, the loan amount you request, and whether the property has other liens, your maximum combined loan-to-value (CLTV) can be as high as 89.9%. TD Bank home equity loan termsRates (APR)Starting at 4.59%Rate discounts0.25% discount with a TD personal checking accountLoan amounts$10,000 and upRepayment periods5 – 30 yearsMaximum LTVUp to 89.9%, depending on loan amountMinimum credit scoreNot disclosedMinimum incomeNot disclosedFees$99 origination fee Pros and cons of a TD Bank HELOC or home equity loan Pros High maximum home equity borrowing limits ($500,000 or more depending on creditworthiness) No minimum draw from your open HELOC line Lock in a fixed rate on all or part of a HELOC balance Discounts for current checking account customers High maximum CLTV, depending on loan amount and creditworthiness Cons Not available in all states Multiple fees apply Penalties for paying off and closing HELOC early Must apply to see optional loan terms If you’re unsure whether TD Bank is the right fit for your home equity needs, check out our list of home equity companies. What do TD Bank’s customers say about the company? SourceRatingNumber of reviewsBetter Business Bureau1.03 out of 5 stars313Trustpilot1.3 out of 5 stars1,568 Ratings collected on November 23, 2022. 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 313 listed customer complaints give the bank a rating of 1.03 out of 5 stars. Customer complaints also include issues with general bank services, such as checking and savings accounts, not just home equity products. TD Bank has more than 1,500 customer reviews through Trustpilot, rating 1.3 out of 5 stars. Like TD Bank’s BBB ratings, Trustpilot 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? To take out a TD Bank home equity loan or line of credit, you and your property must meet certain requirements. You can take out a TD Bank HELOC or home equity loan on either of the following: A home that is your primary residence. A second home. The home can have one to four units. Other home types are excluded, including mobile homes, homes still under construction, homes on leased land, and homes currently for sale. The qualifying property needs to be in one of TD Bank’s service areas, which includes 15 states (listed above) and the District of Columbia. How do I apply with TD Bank? To apply for a home equity loan or line of credit from TD Bank, start by creating 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, as TD Bank will send you a time-sensitive code to confirm your email address before you can proceed.Provide your contact information, and link your checking account if you’re a TD customer.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. Choose a HELOC or home equity loan, and note your primary purpose for the loan.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.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%, though this may vary based on your home value, location, and creditworthiness.Provide your income information, including employment status, military status, and additional income sources. 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, if any, you owe to your current mortgage lender.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 need to input. Expect it to take 10 to 15 minutes to complete if you have all the relevant information. How does TD Bank determine how much I can borrow? How much you can borrow with any home equity-based product depends on how much your home is worth and how much you owe on the property. This will tell you how much equity you have. Next, each lender has rules regarding how much equity you can withdraw from the home. In TD Bank’s case, this can be as much as 89.9% of the home’s value minus any existing liens. However, your allowed CLTV might be lower depending on the home’s value, location, income, and credit history. TD Bank does not specify an upper limit for home equity loans or lines of credit. It lists different terms and requirements for loans up to $500,000 and those above $500,000, but your borrowing limit will depend on your situation. Going through the online application process, we noticed TD Bank auto-populates a maximum loan amount equivalent to 75% LTV. However, this appears to be borrower-specific. What does the appraisal process look like? To determine what your home is worth in the current market—and how much equity you have to borrow from—TD Bank may require an updated home appraisal. A third-party appraiser will use details of your home, its local market, and recently sold properties in the same area to calculate the property’s current value. TD Bank will order this appraisal and pay for it, though it may require you to pay some closing costs if you take out a loan over $500,000. Does TD Bank charge any fees? These fees you’ll pay depend on the product you choose, how much you wish to borrow, and how you manage the account. For example, TD Bank charges an annual fee of $50 for HELOCs—but it waives it the first year, and it only applies to loans over $50,000. Both home equity loans and lines of credit are subject to a $99 one-time origination fee to cover administrative costs such as credit bureau reports, flood reports, and taxes. If you borrow more than $500,000, you may need to cover a more significant portion of these fees, called closing costs. The specific amount will depend on your location and loan details. You may also need to pay an early termination fee of 2% (up to $450) if you pay off your HELOC and close out the account within the first 24 months. You can avoid this fee by: Paying off the balance and keeping the line of credit open.Waiting 24 months to close the account. Fee typeHELOCHome equity loanAnnual fee$50, waived the first yearOnly applies to loans above $50,000NoneOrigination fee$99$99Closing costsOnly on loans over $500,000Only on loans over $500,000Early termination fee2% of the principal balance (up to $450) if you close out the account within 24 months of originationNone 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: Speak with a TD Bank representative about your home equity financing options, and even begin an application over the phone by calling 1-800-815-6849. Facebook Messenger: Chat directly 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.Twitter: Send TD Bank direct messages through Twitter, where customer service representatives can answer questions or accept your comments.