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TD Bank mortgage review
Offers a selection of low down payment options for East Coast borrowers.
finder.com’s rating: 3.9 / 5.0
★★★★★
TD Bank has a number of government-backed, conventional and unique mortgage loans on offer for borrowers. With branches open far outside of typical bank hours, it can be easy to sit down with a loan specialist in person, too.
The snag? Its suite of products and services is only available to East Coast residents.
Details
| Loan products offered | Conventional, Jumbo, FHA, VA, USDA, Home Equity/HELOC, Refinance |
|---|---|
| Minimum credit score | TD Bank doesn’t list its credit requirements, but most lenders require at least a 620 FICO score. |
| Minimum down payment (Conventional) | 3% |
| State availability | CT, DC, DE, FL, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA, VT |
| NMLS # | 399800 |
TD Bank requirements
TD Bank doesn’t list its eligibility standards on its website, but most lenders require similar documentation that verifies your income and contact information. Once you determine that you live in a region that TD Bank services, the bank will likely use your credit history, debt-to-income ratio and the loan-to-value ratio of the property to determine your eligibility. To apply for a conventional loan, you’ll get the best rate with a credit score of at least 620.
Documentation
When you’re first getting ready to apply with TD bank, gather any of the following that applies:
- W-2 forms from the past year
- Most recent pay stubs
- Signed tax returns from the past year
- Proof of alimony or child support
- Award letter for fixed income
- Bank statements from the past two months for deposit and investment accounts
- A letter confirming any gifted funds being used to close
- Divorce decree
- Verification of any additional properties or assets
- Copy of homeowners and flood insurance
Costs and fees
The mortgage process comes with various fees. When going through the process, you can expect to pay:
- Points. Discount your mortgage rate by purchasing points — each costs 1% of the loan amount. For example, buying a single point on a $300,000 loan would be $3,000.
- Lender fees. Typical fees from TD Bank are for origination, processing and underwriting.
- Third-party fees. The home inspection and appraisal, as well as any title services, are paid to third-party providers.
- Ongoing costs. Your biggest ongoing costs will likely be property taxes and home insurance premiums. But you’ll see some additional costs if you modify your loan or pay down principal to reduce your payments.
How to apply for a mortgage with TD Bank
Before you start the process, TD Bank recommends you prepare a budget, get your credit score, gather any necessary documentation and check your rates online. Once you’re ready to apply, you can prequalify over the phone, at a TD Bank branch location or start your application online using the steps below.
- Go to the TD Bank website and select Mortgage under the Products menu.
- Select Apply now and enter your email and password to create an account.
- Verify your email address and confirm that the property you want to purchase is in one of the states where TD Bank originates loans. Select Save and Continue.
- Enter your personal information and select Save and Continue.
- Step through questions about the loan you want, your job and income and your assets and debts, selecting Save and Continue at the bottom of each page.
- Answer financial declarations and select Save and Continue.
- Review any warnings or missing information notes, enter your social security and submit your application.
A TD Bank representative should contact you within three days. From start to finish, TD Bank lists an estimated turnaround of 30 to 45 days on home-purchase mortgages.
What types of mortgages can I get through TD Bank?
- Conventional
- FHA
- VA
- USDA
- Jumbo
Other mortgage products offered by TD Bank
Outside of the typical and government-backed loan options, TD Bank also offers:
- Medical professional loans. Doctors and dentists are eligible to apply if they have a minimum of two years’ residency completed as a licensed resident or fellow, are less than 10 years out of residency and are self-employed in the medical field with at least two years of work history.
- Construction mortgages. A construction or renovation loan with TD Bank converts to a fixed-rate mortgage after the construction phase is complete.
- Home equity products. TD Bank offers both a home equity line of credit (HELOC) with no minimum draw and a home equity loan with a 10-year term.
- HomeReady program. This program comes with a 3% minimum down payment and a reduced rate on your mortgage insurance.
- TD Right Step Mortgage program. Qualified borrowers can get a 30-year fixed-rate mortgage with as little as 3% down and no private mortgage insurance (PMI) after you complete a homebuyer education program.
How TD Bank’s mortgage products compare to other lenders
TD Bank offers a wide variety of loan options for a regional bank of its size. In addition to the more typical conventional and government-backed loans, this lender offers a few low down payment mortgage loans, construction loans and loans for medical professionals.
The only real discount the bank offers is a .25% discount on your HELOC interest rate if you have a personal checking account with TD Bank.
Compare TD Bank to other lenders
Compare other big banks’ mortgage products to TD Bank’s offerings:
Compare mortgage lenders and brokers
Compare these lenders and lender marketplaces by the type of home loan you're searching for, state availability and minimum credit score (for a conventional loan). Select See rates to provide the company with basic property and financial details for personalized rates.TD Bank reviews and complaints
As of July 2021, TD Bank has 191 customer reviews on the Better Business Bureau (BBB), averaging 1.03 out of 5 stars. TD Bank is accredited with the BBB and has a B rating for a government action taken against the bank that resulted in a settlement with the Consumer Financial Protection Bureau (CFPB). This lender has closed over 1,200 customer complaints in the last three years.
Over on Trustpilot, the bank receives a similarly low TrustScore of 1.2 stars with 906 reviews. Most customers complain of poor customer service and the bank being slow to respond to paperwork and other mortgage-related requests. Some long-term customers complain that the bank’s service has deteriorated in recent years.
TD Bank in the news
In August 2020, TD Bank entered into a settlement with the CFPB to pay $97 million in restitution to its customers who enrolled in an overdraft service. The CFPB alleges that TD Bank’s actions with this service were “deceptive and abusive” and violated the Consumer Protection Act of 2010, among other regulations. The bank also had to pay a $25 million civil penalty.
TD Bank pros and cons
Pros
- Weekend hours. Unlike many banks, most of TD Bank’s branch locations are open Saturday 9 a.m. to 1 p.m., Sunday 11 a.m. to 2 p.m. and open as early as 8:30 a.m. on weekdays.
- Low down payment programs. Outside of government-backed loans, TD Bank offers HomeReady and TD Right Step Mortgage to help you get the loan you need with as little as 3% down.
- Guides and resources. TD Bank offers an almost overwhelming amount of information on its site for potential homebuyers and homeowners looking to take out a loan.
Cons
- East Coast only. If you live outside of the TD Bank service footprint, you’re out of luck.
- Online customer service limited. Contacting this bank through its social media platforms will likely land you with a link to a page you’ve already seen and a suggestion to call in rather than an actual answer.
- Unclear loan availability. While it lists general loan types on its site, TD Bank doesn’t specify which government loans it offers. It also doesn’t give defined terms for its conventional mortgages.
What is TD Bank?
TD Bank is headquartered in New Jersey and is a subsidiary of Toronto-Dominion Bank — Canada’s second-largest bank, according to an August 2019 report by the Wall Street Journal. It’s been in business since 1852 and touts itself as America’s “most convenient bank” with branches open late and on weekends.
Review by
Rhys Subitch
rhys.subitch@finder.comRhys Subitch is the loans editor at Finder, guiding Americans toward smart borrowing decisions. With over half a decade of experience researching, editing and writing for a Fortune 500 company, university and several independent publications, Rhys brings readers the most up-to-date and curated info in the lending sphere. They make frequent appearances on Finder's YouTube channel to talk through loan topics that range from the very basics to the latest government assistance programs. Before specializing in lending, Rhys was a personal finance writer for Finder’s credit cards, insurance, banking and mortgage verticals. They hold a BA in sociology and a certificate in editing from the University of Washington, Seattle.
Expert review
TD Bank’s low down-payment options may make it the right option for East Coast homebuyers with decent credit. Walk through the mortgage process using its online application or take advantage of the bank’s longer hours and apply in person at one of its branch locations. But between the bank’s consistently poor reviews and its recent settlement with the government, you may want to shop around and compare to make sure this bank is right for you.