TD Bank Mortgage Review 2022

TD Bank mortgage at a glance

If you live on the East Coast, TD Bank can provide ample mortgage loan products and a digital application experience, backed by personal service. Mortgage rates and fees are within industry norms, according to NerdWallet's analysis, though TD Bank doesn't publish sample mortgage rates on its website; potential borrowers can use a rate-customizing calculator to see what rates they might qualify for.

Here's a breakdown of TD Bank's overall score:

• Variety of loan types: 5 of 5 stars

• Ease of application: 5 of 5 stars

• Rates and fees: 3 of 5 stars

• Rate transparency: 4 of 5 stars

» MORE: Compare TD Bank Mortgage to other lenders

TD Bank mortgage loan types and products

Canada-born TD Bank also serves U.S. home buyers, particularly on the East Coast. Although it doesn't offer mortgages in all 50 states, it does offer a full range of home loan products — basically, everything but reverse mortgages.

TD Bank distinguishes itself when it comes to specialty products like construction loans, according to Ray Rodriguez, a TD Bank regional mortgage sales manager.

"In a lot of areas, we see the need for construction lending," Rodriguez says. "Whether that's somebody who buys a raw piece of land and wants to build a house on it, or buys an older home and wants to purchase it and renovate it at the same time."

A construction-to-permanent loan from TD Bank allows you to lock your interest rate and finance the construction costs and your mortgage with a single loan closing. And you make interest-only payments during the building phase. After that, you'll make regular mortgage payments.

Construction loans can also be used if you buy a home that needs a little remodeling, allowing you to roll the costs of improvements into your permanent mortgage.

TD Bank participates in the HomeReady loan program backed by Fannie Mae, which allows income-eligible borrowers to qualify for a home loan with as little as a 3% down payment.

In addition, TD Bank launched its own low- to moderate-income loan program, the Right Step Mortgage, which also allows a down payment as low as 3% but doesn't require borrower-paid mortgage insurance, as the HomeReady program and FHA loans do.

With so many customers living in hypercompetitive real estate markets in pricey urban areas of the East Coast, TD Bank also offers jumbo mortgages, higher-value loans that are not sold to investors like Fannie Mae and Freddie Mac but rather held on the bank's books.

There are no minimum or maximum mortgage limits, Rodriguez says.

TD Bank HELOC: The lender also offers a home equity line of credit, or HELOC. These second mortgages are one way for homeowners to access existing home equity without refinancing or selling their home. Funds obtained with a second mortgage can be used for expenses such as home improvements, education costs or debt consolidation. TD Bank's HELOC offers a rate discount for personal checking customers and a $25,000 minimum credit line with no minimum draw.

TD Bank ease of application

TD Bank offers an all-digital loan process, supplemented with human guidance. Prospective borrowers can check the status of their loan application, review and upload documents and maintain contact with their loan team.

Rodriguez says the loan process is driven by customer preferences. He gives an example of a Wall Street trader who may prefer to handle loan details primarily by email and phone. That contrasts with the "touch and feel" customer who might rather deal with such a large transaction face to face in a TD Bank branch.

TD Bank mortgage rates and fees

Lender fees vary by geography and loan product, Rodriguez says.

One of the most important considerations when choosing a mortgage lender is understanding what the loan will cost. In order to provide consumers with a general sense of what a lender might charge, NerdWallet scores lenders on two factors regarding fees and mortgage rates, according to the most recently available Home Mortgage Disclosure Act data:

• TD Bank earns 3 of 5 stars for average origination fee.

• TD Bank earns 3 of 5 stars for offered mortgage rates compared with the best available rates on comparable loans.

Borrowers should consider the balance between lender fees and mortgage rates. While it's not always the case, paying upfront fees can lower your mortgage interest rate. Some lenders will charge higher upfront fees to lower their advertised interest rate and make it more attractive. Some lenders just charge higher upfront fees.

You can decide to buy discount points, a fee paid with your closing costs, to reduce your mortgage rate.

Deciding whether or not you want to pay higher upfront fees is a matter of considering how long you plan to live in a home and how much cash you have to apply to closing costs when you sign the loan paperwork.

» MORE: 'Should I buy points?' calculator

TD Bank mortgage rate transparency

TD Bank does not publish sample rates for various mortgage products on its website. But clicking on a green "Calculate my rate" button on the bank’s main mortgage page shows a short questionnaire, so a rate-shopping borrower in a ZIP code TD Bank serves can get an idea of a mortgage rate they'd earn and can request additional information.