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TD Bank home equity review

Choose from several options, but beware of this lender’s fees and poor reviews.

If you live in one of the states that this regional bank services, TD Bank offers both a home loan option and a home equity line of credit (HELOC). But it doesn’t waive some closing costs that other lenders do, and its reputation with customers is tarnished.

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Details

Loan products offeredHome equity loan, HELOC
Minimum credit scoreThis lender doesn’t list a minimum, but most banks require at least a 620 FICO score.
APR range4.49% to 18%
Repayment termsLoans: 5-30 years
HELOC: draw 10 years, repayment 20 years
Loan limits$10,000 minimum loan; $25,000 minimum line; this bank doesn’t list maximums.
State availabilityCT, DC, DE, FL, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA, VT

Our take on TD Bank

TD Bank’s HELOC is the most versatile product it offers. It’s a good fit for borrowers who want an open credit line for small purchases, as the bank doesn’t require a minimum draw, and you can apply for the EquityAccess Plus card to make sure you have overdraft protection on your credit line.

But this bank doesn’t have the best reputation with its customers. It charges lender fees that many other banks waive. And while overdraft protection is a perk on its HELOCs, its previous overdraft protection on checking accounts resulted in a Consumer Financial Protection Bureau (CFPB) settlement for enrolling customers in the program without telling them it’s optional and charging for the service that they advertised as free.

While there aren’t any CFPB fines or reports on the record for their current home equity-related debit card, it’s worth reading the fine print on any contract from the company before signing up for a HELOC to make sure you understand any fees you could be charged.

Pros and cons of TD Bank

Pros

  • No minimum draw. Unlike some lenders that require a large first draw or have a minimum draw amount, once your HELOC is established with TD Bank, you can draw as little or as much as you like within the established line amount.
  • Discount available. If you have a personal checking account with TD Bank, you can get a .25% discount on your interest rate.
  • Overdraft protection. TD Bank has introduced a new form of overdraft protection with its EquityAccess Plus card. Use the card to access your HELOC funds, get free overdraft protection and never worry about exceeding your limit.

Cons

  • Poor customer reputation. Between the low customer review ratings and its forced settlement with the CFPB, you’ll want to carefully compare this lender to others before you decide.
  • Charges lender fees. Unlike some lenders who waive their lender fees, this bank charges an origination fee on its home equity products, plus an annual fee on its HELOC.
  • Limited availability. This bank’s home equity products are only available in 16 states.

What types of fees does TD Bank charge?

The costs you pay depends on where you live and the amount of your credit line or loan. But you can expect to pay at least the following lender fees on TD Bank’s home equity products:

Home loanHELOC
Origination fee$99$99
Annual fee$50
Early termination feeup to $450

Additional fees vary but typically include:

  • Appraisal fees
  • Title fees
  • Taxes
  • Insurance
  • Credit report fee
  • Closing services fee
  • Attorney fees, where required

TD Bank requirements

This lender doesn’t list its home equity product requirements, but your eligibility and interest rates are based on your credit history, combined loan-to-value ratio, the property type and how you plan to use the property — whether as a primary residence, vacation home or investment property.

Documentation

TD Bank doesn’t provide a list of the documentation required during the application process. But typically, you’ll want to gather the following:

  • Estimate of the property’s value
  • Employment and income information
  • Debt and asset information
  • Details about insurance and taxes on the property
  • Mortgage balance
  • Personal information for you and any co-applicant

How to apply for a home equity loan with TD Bank

You can apply on the phone, in a TD Bank branch or by using these steps to apply online:

  1. Visit the TD Bank website, navigate to the Home Equity page and select Apply Now.
  2. Create an account, verify it’s you and sign in.
  3. Select Save and Continue at the welcome screen.
  4. Step through the instructions, entering your personal information and loan information.
  5. Enter your employment and income information, as well as information about your assets and debts.
  6. Answer declaration questions and review your application information. Select Submit.

What types of home equity products does TD Bank offer?

TD Bank offers two home equity options:

  • Home equity loan. This fixed-rate loan allows you to borrow a set amount against your home’s equity and choose a term to pay it off, from 5 to 30 years.
  • Home equity line of credit (HELOC). Open a variable-rate credit line to draw money when you need it, with the option to take fixed-rate advances of $5,000 or more. You can also sign up for a TD EquityAccess PLUS card for your account, which adds overdraft protection.

Other mortgage products TD Bank offers

This lender also offers a slate of home loan products.

  • Conventional
  • Jumbo
  • FHA
  • VA
  • USDA
  • Mortgage refinance
  • Medical professional loans
  • Construction mortgages
  • Home equity products
  • HomeReady program
  • TD Right Step Mortgage program

How TD Bank’s home equity products compare to other lenders

TD Bank offers both a fixed-rate home equity loan and variable-rate line of credit. The HELOC offers a fixed-rate option as well, if you’re willing to draw $5,000 or more as an advance. The bank’s two unique features are a debit card on your HELOC that comes with overdraft protection and a .25% interest rate discount to its customers who have a personal checking account.

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TD Bank reviews and complaints

TD Bank has 191 customer reviews on the Better Business Bureau (BBB) as of July 2021, averaging 1.03 out of 5 stars. TD Bank is accredited with the BBB. Despite having closed 1,243 customer complaints in the last three years, it has a B rating for a government action taken against the bank that resulted in a settlement with the CFPB.

The bank receives similarly low ratings on Trustpilot, earning a TrustScore of 1.2 stars with 901 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 the August 2020 CFPB settlement, TD Bank agreed to pay $97 million in restitution to customers who enrolled in an overdraft service. The CFPB alleges the actions taken by TD Bank 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.

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