TD Bank HELOCs at a Glance

• Fixed rate or variable: Variable
• How can I withdraw funds? Checks and Visa cards, as well as transfers to a personal checking or savings account.
• Origination fee: Yes — $99
• Loan to-value ratio: Variables
• Funding time: Uncertain

TD Bank offers home equity credit lines, or HELOCs. There is no minimum draw requirement, and you can borrow what you need up to your credit limit.

Pros

• Lock in a fixed rate
• Discount rate for TD Bank savings and checking customers
• No minimum draw required

Cons

• Multiple fees
• A possible appraisal might be necessary
• Closing in person required

Four things you need to know about a TD Bank

Let’s look at the main features of a TD Bank HELOC.

1. You can lock in rates and continue to draw from your HELOC

You have the option to lock in a fixed rate interest on all or part of your HELOC balance during the draw period, or during the repayment period. You can use your HELOC to access your equity if you do so during the draw period.

This option does not require any setup fees. This option can be beneficial for borrowers who are looking for stability in their interest-rate and payments, especially in an environment of rising rates.

TD Bank offers fixed rates on minimum $5,000 and up to three fixed-rate options at once. Your repayment term cannot exceed the maximum term of your fixed-rate rate.

2. Multiple fees can raise total borrowing costs

Multiple fees are associated with a TD Bank HELOC.

• $50 Annual Fee for amounts starting at $50,000
• If you close your account within 24 month of opening it, you will be charged an early termination fee of 2% on the principal balance. This is up to $450.
• There is a $99 origination charge when you first take out your HELOC
• HELOCs with credit limits greater than $500,000, as well as HELOCs on cooperatives and investment properties, have to pay closing costs.
• If you use your HELOC for refinance of a home equity loan or line of credit, a mortgage discharge fee could apply

3. A minimum credit limit is required, but there’s no minimum draw.

HELOCs are available at TD Bank starting at $25,000. If you need to access only a small amount of the HELOC, there is no minimum draw. This will allow you to borrow what you need at the time you need it up to your credit limit.

4. Rate discounts and overdraft protection available

TD Bank also offers a product called TD EquityAccess Plus, which has the same features as the HELOC but with a higher interest rate and additional protection. This extra protection may be appreciated by some borrowers.

It is also worth noting, that TD Bank offers rates discounts to existing customers. If you open (or have already opened) a TD Bank bank checking account, you will receive a 0.25% discount.

What is a TD Bank HELOC good at?

TD Bank’s HELOC is attractive for borrowers with equity in their homes who want to access funds for projects and not have to take out separate loans. This HELOC can be a good option for those who need to access their home equity on flexible terms, rather than the traditional cash-out refinance terms.

How can I obtain a TD Bank HELOC

Although there are many steps involved in the application process TD Bank has outlined what you can expect. Online applications are possible, but you will need to visit a TD Bank branch in person to close your loan.

HELOCs from TD Bank are available for one-to four-family primary or secondary residences. Exclusions are RVs, boats and mobile homes, as well as homes for sale, under construction, or on leased land.

Additional terms and conditions may apply to credit lines exceeding $500,000, co-ops, and properties worth more than $2.5million.

These documents may prove helpful as you prepare for a TD Bank HELOC application.

• Paystubs for the last 30 days
• Forms W-2 from the last two years
• If you are self-employed, tax returns for the last two years
• Photo ID
• If required, proof of homeowner’s insurance and flood insurance

Are you unsure if TD Bank is right to serve your needs? These are some alternatives.

• Bank of America HELOC : The national bank offers a HELOC without an application fee, closing costs, or fees to convert to fixed-rate options.
• Figure This online lender will help you skip an appraisal in person.