TD Bank mortgage review
finder.com’s rating: 3.9 / 5.0
Offers a decent selection of home loans if you’re on the East Coast.
TD Bank has a number of government-backed, conventional and unique home loans on offer for borrowers. With branches that are 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.
What types of loans does TD Bank offer?
A variety of home loans are on offer from TD Bank — including unconventional options, such as its Medical Professional Mortgage.
Fixed- and adjustable-rate mortgages are available through TD Bank. Qualified homebuyers can put down as little as 3% down for a 15- or 30-year fixed-rate mortgage.
To borrow more than the standard loan maximum for your area, you’ll have to go for a jumbo loan. Fixed-rate and adjustable options are available, and you can buy or refinance with it.
These government-backed 30-year fixed-rate mortgages come with a lower minimum down payment — only 3.5%, and it can be a gift. And you’re not required to participate in a homebuyer education program to qualify.
Designed for military service members, retired veterans and their spouses, VA loans offer low and no down payment options, as well as rates that typically beat out conventional loans.
For those living or looking to live in a rural area, a USDA-backed loan are for homebuyers in rural areas and could mean taking out a mortgage or refinancing with a $0 down payment. It’s specifically designed for low- and moderate-income households, so you can apply without great credit.
Other loans offered by TD Bank
Outside of the typical and government-backed loan options, TD Bank also offers:
- A medical professional mortgage option for physicians and dentists
- Construction mortgages
- Home equity loans
- Home equity lines of credit (HELOCs)
- Commercial real estate
TD Bank fees
The mortgage process comes with various fees. When going through the process, you can expect to pay:
- Points. You can discount your mortgage rate by purchasing points — each costs 1% of the amount of your loan. For example, buying a single point on a $300,000 loan would be $3,000.
- Lender fees. Typical fees you can expect to see 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.
Your minimum down payment can be as little as 3% with the HomeReady program, and mortgage insurance is provided at a reduced rate. Fixed-rate mortgages with 15- and 30-year terms are available through HomeReady.
TD Right Step Mortgage program
Qualified borrowers can get a 30-year fixed-rate mortgage for as little as 3% down with this program provided by TD Bank. You’re off the hook for paying mortgage insurance after you complete a homebuyer education program.
TD Bank doesn’t list its eligibility standards on its site, 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, gather your credit score. To apply for a conventional loan, you’ll get the best rate with a credit score of at least 620.
When you’re first getting ready to apply with TD bank, gather any of the following that apply:
- 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
How to get a home loan 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 or at a TD Bank branch location.
- Go to the TD Bank website and select Mortgage under the Products menu.
- Click Get quote for instant rate and option estimates.
- Once you have your quote, exit the popup box and select Get started.
- Fill out your first and last name and email, create a password and select Start application.
- Upon completely filling out your application and uploading documentation, TD Bank will call you to review next steps.
- If additional information is required, submit it through the online portal and your application will begin processing.
- The application goes through processing and underwriting to make a decision.
- Upon approval, TD Bank will schedule a date and location for closing.
From start to finish, TD Bank lists an estimate turnaround of 30 to 45 days on home-purchase mortgages.
TD Bank reviews and complaints
As of December 2020, TD Bank’s Better Business Bureau page is being updated and thus is not accredited and receives an NR rating. The customer reviews on its BBB profile are sparse and average to just over 1 out of 5 stars. Negative reviews focus on poor customer service, and complaints are overwhelmingly categorized as issues with product and service or billing and collections.
Over on Trustpilot, the bank receives a similarly low TrustScore of 1.3. Most customers making up the 92% of “Bad” reviews cite poor customer service.
Pros and cons of TD Bank
- Online process. Get quotes, start your application, upload documents and check up on the status of your application online anytime.
- 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 who are looking to take out a loan.
- East Coast only. If you live outside of the TD Bank service footprint, you’re out of luck.
- Online customer service limited. Contacting TD Bank via Facebook or Twitter DM 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.
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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.
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Rhys Subitch is a writer and editor at Finder who tackles topics across the site. With 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 on all things finance.
TD Bank mortgages are good for good-credit borrowers who need help with a down payment. Fannie Mae’s HomeReady program offer as low as 3% down and a reduced PMI. With its Right Step program, qualify for a 30-year fixed-rate mortgage with as little as 3% down, and no PMI after you complete a homebuyer’s education program.
If you’re outside TD Bank’s footprint, or just starting your search, you can compare mortgage providers and get a better idea of what’s available.