TD Bank HELOC Review: Flexible Home Equity Access

TD HELOC: Rate discounts, fixed-rate option, no min draw.

TD Bank HELOC Review: Flexible Home Equity Access

Features

  • Rate Discount: Available for checking account holders, enhancing affordability.
  • Rate Options: Variable rate with an option to convert to fixed, aiding payment predictability.
  • No Minimum Draw: Offers flexibility in borrowing, aligning with various financial needs.
  • Origination Fee: Applicable, alongside a $50 annual fee for lines over $50,000.
  • Availability: Restricted to 15 East Coast states and Washington, D.C.

Benefits

  • Online Transparency: Sample HELOC rates are published online, aiding in financial planning.
  • Fixed-Rate Option: Allows borrowers to stabilize payments in a fluctuating rate environment.
  • Investment Property Eligibility: Extends beyond primary residences, including second homes.
  • Generous LTV: Maximum CLTV of 89.9%, offering substantial borrowing capacity.

Product Summary

TD Bank’s HELOC distinguishes itself with a special rate discount for checking account holders and a versatile rate structure with a fixed-rate conversion option. This financial product is designed for borrowers who value predictability in their repayments and seek to leverage their home equity without immediate cash outlays, as it imposes no minimum draw requirement. Including an origination fee and a potential annual fee for larger credit lines are considerations for potential borrowers.

TD Bank's regional restriction to the East Coast and Washington, D.C., along with its digital and physical accessibility, positions it as a go-to for homeowners in these areas looking for a blend of in-person and online service. The HELOC’s draw and repayment terms and the capability to cover investment properties underscore its appeal to a broad spectrum of financial needs and scenarios.

While the $50 annual fee for lines exceeding $50,000 and the early termination fee may deter some, TD Bank’s competitive LTV ratio and the absence of a compulsory initial draw make it an attractive option for homeowners aiming to manage or invest in their property’s equity efficiently.

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