TD Bank HELOC Review 2023
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The bottom line:
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 & Cons
- Publishes a sample HELOC rate online.
- Offers a fixed-rate payment option.
- Available for second homes and investment properties.
- $50 annual fee, waived for lines of credit below $50,000.
- Available only in states on the East Coast.
- Early termination fee charged if the line is closed within two years.
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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 month
Prime rate in the past year — low
Prime rate in the past year — high
TD Bank publishes a sample HELOC rate on its website. The lender’s advertised rate was 7.84% for a borrower with a minimum line amount of $200,000 and a rate discount on the day we checked. TD Bank offers a rate discount for borrowers who have or open a personal checking account with the lender.
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 search option on TD Bank’s website also 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. HELOC information pages on the lender’s website offer an impressive level of detail as well as FAQs about how the line of credit works. TD Bank does not offer a live chat to answer borrower questions on its website.
Closing and managing 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. 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 TD Bank checking or savings account.
Through the bank’s mobile application.
In person at a bank branch.
With a Visa-issued access card.
Payments can be made through the bank’s online payment center 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 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: whether a fixed-rate option is available, combined loan-to-value ratio, annual fees and transparency on key factors.