TD Bank HELOC Review 2024
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Our Take
5.0
TD Bank’s HELOC stands out for a rate discount for checking account holders and a variable rate with an option to convert to a fixed rate, which can help keep payments predictable. It has no minimum draw, but be aware of the origination fee and an annual fee for lines over $50,000.
Pros
- Publishes sample HELOC rates online.
- Offers a fixed-rate payment option.
- Available for second homes and investment properties.
Cons
- $50 annual fee, waived for lines of credit below $50,000.
- Available only in 15 East Coast states and Washington, D.C.
- Early termination fee charged if the line is closed within two years.
Lender | Max LTV | Min. credit score | National / regional | |
|---|---|---|---|---|
85% | 670 | National | Visit Lenderat Bethpage Federal Credit Union at Bethpage Federal Credit Union | |
85% | 640 | National | Visit Lenderat Figure at Figure | |
85% | 620 | National | Visit Lenderat Guaranteed Rate at Guaranteed Rate | |
80% | 680 | National | ||
89% | 660 | National |
Full Review
TD Bank HELOC rates and discounts
Most home equity line of credit, or HELOC, interest rates are indexed to a base rate called the prime rate. The annual percentage rate, or APR, that you’re offered will include a margin the lender has added to the prime rate. Offered margins depend largely on factors like your credit score, your existing debt and the amount you wish to borrow, but they will vary by lender.
Current prime rate | Prime rate last week | Prime rate in the past year — low | Prime rate in the past year — high |
|---|---|---|---|
8.50%. | 8.50%. | 8.0%. | 8.50%. |
TD Bank publishes sample HELOC rates on its website. On the day we checked, the lender’s advertised rate was 8.24% for a borrower with a minimum line amount of $200,000 and a rate discount. TD Bank offers a rate discount for borrowers who have or open a personal checking account with the lender. You don’t have to sign up for autopay to be eligible for this discount.
TD Bank publishes a maximum combined loan-to-value ratio of 89.9%, a generous percentage compared with other lenders, in its disclosure details on its website. CLTV is used to determine how much a homeowner can expect to borrow with a HELOC.
Applying for a TD Bank HELOC
You can apply online, in person at a bank branch or by phone. On the day we called, it took less than a minute to reach an advisor familiar with the HELOC process. A branch locator on TD Bank’s website can help find a loan officer near you.
To apply for a HELOC, you’ll need to supply some personal information as well as income data and financial details about your home. During the application process, you’ll have the option to sign up for overdraft protection through the lender’s TD EquityAccessPLUS product.
HELOC information pages on the lender’s website offer an impressive level of detail on the process, as well as FAQs about how the line of credit works. You can track the status of your HELOC application online.
TD Bank has a virtual assistant that provides quick links to frequently asked questions. The prompts are limited and mainly geared to its banking customers. When we tested it, the chatbot didn’t recognize our questions about HELOCs.
The lender does not offer live online chat with customer service agents on its website. However, TD Bank does accept questions and comments through private message on Facebook Messenger.
Opening and using a TD Bank HELOC
No matter how you apply for a HELOC from TD Bank, you’ll close the line of credit in person at a bank branch or with a bank representative in your home. Once approved, funds are available after a wait of three business days, a requirement to consider if you are in a rush to secure funds. However, unlike some lenders, TD Bank does not require an initial draw — so you can open the line of credit without withdrawing funds. TD Bank’s HELOC offers a draw period of 10 years followed by a repayment period of 20 years — both are typical.
Borrowers can access HELOC funds:
Via transfer to a checking or savings account.
By phone.
Through the TD Bank mobile app.
In person at a bank branch.
Using checks or a Visa-issued access card.
Payments can be made through the bank’s online payment center, in person at a branch or by phone.
» MORE: Best HELOC lenders
Alternatives to a TD Bank HELOC
Bank of America offers a HELOC up to $1 million with no annual fees or closing costs, and U.S. Bank offers a HELOC with a rate discount for current banking customers.
HELOCs offer a flexible way to access home equity over a period of time and pay interest only on the funds you withdraw. However, rising interest rates can bump up your monthly payment, and, as with credit cards, it takes discipline to avoid overspending. Alternatives to home equity lines of credit include a home equity loan, which offers a lump sum with a fixed rate, or a cash-out refinance, which replaces your existing mortgage with a larger loan. TD Bank offers a home equity loan and a cash-out refinance option.
NerdWallet’s HELOC star ratings are awarded by the editorial team based on the following evaluated factors: combined loan-to-value ratio, lender fees, transparency on key factors, whether a fixed-rate option is available, rate discounts, ease of application, whether a prepayment penalty may apply and whether an initial draw is required.
