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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 offeredConventional, Jumbo, FHA, VA, USDA, Home Equity/HELOC, Refinance
Minimum credit scoreTD Bank doesn’t list its credit requirements, but most lenders require at least a 620 FICO score.
Minimum down payment (Conventional)3%
State availabilityCT, DC, DE, FL, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA, VT
NMLS #399800

Our take on TD Bank

TD Bank’s extensive list of conventional mortgage products and specialty home loans make it an option worth considering for East Coast homebuyers with decent credit.

Though customer sentiment varies dramatically between the major review sites, an overwhelming majority of reviewers on Zillow rate TD with high regards. And since Zillow reviews tend to focus more on mortgages than all of a bank’s products and services, it can give you a better idea of what you might expect as a homebuyer.

That said, TD was recently involved in a settlement that resulted in the bank paying almost $100 million in restitution to its customers for shady overdraft practices. And like many big banks, TD isn’t up front about its lender fees. The bank charges a $950 origination fee, which is a standard lender fee, but we had to call to get this information.

In short, if you prefer to do business in person and are buying a home on the East Coast, TD is worth considering. If you’re looking to avoid lender fees altogether, there are plenty of other options.

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 property’s loan-to-value ratio 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. Although TD publishes a fee schedule for its mortgages and home equity products, it doesn’t mention any lender fees, so we reached out to a loan officer. TD charges a flat $950 origination fee, which is standard.

This is the only lender fee TD charges, but you’re responsible for paying the various third-party fees associated with getting a mortgage. When going through the process, you can also 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.
  • 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.

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.

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.

  1. Go to the TD Bank website and select Mortgage under the Products menu.
  2. Select Apply now and enter your email and password to create an account.
  3. 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.
  4. Enter your personal information and select Save and Continue.
  5. 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.
  6. Answer financial declarations and select Save and Continue.
  7. 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
This company accepts mortgage refinance applications.

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.

TD Bank reviews and complaints

As of November 2021, TD Bank has 201 customer reviews on the Better Business Bureau (BBB), averaging 1.01 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 has two unclaimed profiles. On one profile, TD Bank receives a similarly low TrustScore of 1.2 stars with 1,024 reviews. On the other, customers rate TD 1.5 out of 5 stars based on a total of 42 reviews.

Most customers complain of poor customer service and slow responses to paperwork and other mortgage-related requests. Some long-term customers complain that the bank’s service has deteriorated in recent years.

Reviews on Zillow are more specific to TD Bank’s mortgage services and are much more positive than on the BBB and Trustpilot. Reviewers on Zillow rate TD Bank 4.91 out of 5 stars based on a total of 519 reviews. Satisfied customers highlight great customer service, a responsive loan team and a smooth mortgage process.

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.

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.

Alternatives to TD Bank

TD Bank offers a wide variety of conventional, government-backed and specialty loan options, but the bank only services states on the East Coast and its $950 origination fee might be more than you’d like to pay for your mortgage.

If you like the idea of getting a mortgage through an established brick-and-mortar bank where you can meet with a loan officer face to face, but you live outside TD’s servicing area, consider Chase or Wells Fargo. Though not as extensive, both banks offer a similar lineup of mortgage products and have branch locations in most states across the country. But like many big banks, reputation can be spotty and fees can add up quickly.

Maybe you don’t care so much about dealing in person and instead prefer a highly-rated lender that charges minimal fees. If this sounds like you, Better and Beeline are two options worth considering. Both are digital lenders that steer clear of lender fees and have had mostly positive customer feedback.

Alternatively, compare top brands by home loan type, state availability and credit score. Select See rates to provide the lender with basic property and financial details for personalized rates.

Name Product Loan products offered State availability Min. credit score
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
620
Streamline your mortgage from quote to final payment — all from your computer or phone.
AmeriSave
(NMLS #1168)
AmeriSave
Conventional, Jumbo, FHA, VA, USDA, Refinance
Not available in: NY
620
Great customer reviews and customized rate quotes in three minutes with no SSN needed.
Veterans United
(NMLS #1907)
Veterans United
Conventional, FHA, VA, USDA, Jumbo, Refinance
Available in all states
620
Veterans United stands out from other lenders for its focus on serving the military community.
Better
(NMLS #330511)
Better
Conventional, Jumbo, FHA, Refinance
Not available in: HI, MA, MN, NV, NH, VT, VA
620
Online preapproval in minutes and no origination fees with this direct lender.
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