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TD Bank mortgage review 2024

Aly J. Yale
·Freelance writer
Updated 9 min read

The Yahoo view: TD Bank offers a wide range of mortgage products for all types of borrowers and financial goals, and it has better rates and fees than many competitors. However, its 15-state footprint makes it an option for only a small segment of borrowers.

TD Bank is a regional bank and lender offering a wide range of mortgage products. It operates in 15 states and Washington, D.C., and boasts interest rates and loan fees lower than industry medians.

Borrowers will find several down payment assistance options at TD Bank, and its many physical branches (in states where it operates) and strong suite of online tools and apps make it easy to work with. There are also added incentives if you choose to bank with TD.

TD Bank

Key benefits

  • Lots of loan options, including medical professional loans, home equity loans, and HELOCs.

  • Low-down-payment mortgages and down payment assistance offerings can help make borrowing more affordable.

  • Borrowers can apply online, in person, or over the phone.

  • There are discounts available if you set up autopay or bank with TD.

  • Many online tools, calculators, and resources are available for borrowers.

  • Highly rated mobile apps for both Android and iPhone devices.

Need to know

  • Only serves 15 states (CT, DE, FL, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA, VT) plus Washington, D.C.

  • No USDA or non-QM loans are available.

  • Personalized rates are available by filling out a quick online form.

TD Bank offers the following types of home loans:

  • Purchase loans

  • Refinance loans

  • Conventional loans

  • Jumbo loans

  • FHA loans

  • VA loans

  • Fixed-rate mortgages

  • Adjustable-rate mortgages

  • Construction loans

  • Renovation loans

  • Medical professional mortgages

  • Cash-out refinancing

  • Home equity loans

  • HELOCs

  • Interest-only loans (during the home construction phase)

  • Second home loans

  • Bridge loans

  • Investment property loans

  • Interest rate buydowns

  • Manufactured home loans

TD Bank does not offer the following types of home loans:

  • USDA loans

  • Land loans

  • ADU loans

  • Non-QM loans

  • Energy-efficient loans

  • 1% down mortgages

  • Piggyback mortgages

  • ITIN mortgages

Learn more: How mortgage interest rate buydowns work

If you’re a first-time home buyer, TD Bank has a lot going for it. Not only does the lender offer step-by-step guides you can follow throughout the process, but there are tons of low-down-payment loan options to choose from, too, including FHA, VA, and 3%-down conventional loans. There are also construction loans if you want to build your house from the ground up.

TD Bank offers a wide variety of assistance programs to lighten the financial load. With these, you can avoid mortgage insurance costs, get up to $10,000 in lender credits, and even buy down your interest rate. These features have earned TD Bank a spot on our list of the best mortgage lenders for first-time buyers.

TD Bank offers homeowners great options for tapping their home equity. In addition to cash-out refinancing, there are both home equity loans and HELOCs. Learn more about these below:

A HELOC is a second mortgage that lets you draw from your line of credit as needed. TD Bank’s HELOCs start at $25,000 with no minimum draw required. They start with a variable interest rate, but you have the option to switch to a fixed rate later. There’s also a 0.25% rate discount if you have an eligible checking account with TD.

A home equity loan is similar to a HELOC, except you receive your money in one lump sum. TD’s home equity loans come in five-, 10-, 15-, 20-, and 30-year terms and can be used on primary residences, second homes, and investment properties (though you can’t get a 30-year term for an investment property). TD Bank’s home equity loans have fixed interest rates and include a rate discount if you have auto pay with a TD checking or savings account. The minimum loan amount is $10,000.

TD Bank’s home equity loans and HELOCs do come with some fees. There’s a $99 origination fee for both second mortgages and an annual fee (usually $50) for the HELOC. There are also various one-off fees, like those for late payments and credit line reductions.

Dig deeper: Differences between HELOCs and home equity loans

While TD Bank doesn’t outright list its current mortgage rates, it makes it easy to access your potential rate. All you do is answer a few quick questions about where you’re buying, your goals, and your credit, and you’ll get a whole list of personalized loan and rate options. The tool doesn’t say whether these quoted rates include discount points, though it does include the estimated closing costs with each option. Overall, we found that TD Bank’s mortgage rates rank lower than many competitors. We’ll dive more into this below.

TD’s home equity loan and HELOC rates are easy to come by too. This requires simply inputting your ZIP code, and you’ll see current rates for these products instantly.

At Yahoo Finance, we use 2023 Home Mortgage Disclosure Act data of 10 million home loan applications to score mortgage lenders on issued mortgage rates and total loan costs. We score each lender on a scale of 1 (lowest) to 5 (highest).

For example, with mortgage rates, a lender with a lower score charged a higher-than-median mortgage interest rate for loans issued in 2023. A higher score would indicate a lender granted lower-than-median home loan interest rates to borrowers in 2023.

With total home loan costs, a lower score would indicate that a lender charged higher-than-median total home loan costs in 2023. A high rating would mean a mortgage lender offered lower-than-median home loan costs in 2023.

What this means: TD Bank offered a lower-than-median mortgage rate of 6.5% and a lower-than-median total loan cost of $5,050.12 to borrowers in 2023.

To get a TD Bank mortgage, you can apply online, by phone, or in person at one of the bank’s many physical branch locations. If you choose online, you’ll need to create an account in the bank’s “Easy Home Apply” system, and once you verify your email address, you can log in and start your application.

The application calls for personal information and details about the type of mortgage loan you want, your employment and income situation, and your assets and liabilities. You’ll also need to make declarations about how you’ll use the property and loan before you can apply.

TD Bank calls preapproval “prequalification.” Yes, we know preapproval and prequalification are two different processes, but using context, we realized TD really does just use the incorrect word on its website. It is, in fact, talking about preapproval, which requires a hard credit pull.

The process is pretty simple, though: You’ll need to meet with or speak to a TD Loan Officer, provide your income, debts, property information, and Social Security number, and agree to a credit check. Once TD reviews the information, you will get a letter stating how much you can likely borrow. There is no online way to get preapproved.

Read more: What is mortgage prequalification?

TD Bank has a wide range of online tools and resources for borrowers. There’s a home lending learning center with guides on topics ranging from affordable home loans to investment properties. There’s also a “TD Advice” hub just for mortgages, six payment and affordability calculators, and two highly rated mobile apps (one for Androids and one for iPhones).

Learn more: Use our free mortgage payment calculator

  • Strong affordability. The lender offers purchase, refinance, government-backed, and 3%-down conventional loans, as well as robust down payment assistance options and home equity products, giving it 5 stars in this category.

  • Low interest rates and loan fees. Our analysis shows that TD Bank’s mortgage rates and loan costs rank lower than many competitors, earning it a 4 out 5 in both categories.

  • Lots of online resources. The company offers calculators, guides, FAQs, videos, and plenty of educational content to help borrowers through every step of the journey. It gets 4 stars in this category.

  • Rate transparency could be better. While it’s easy to find the potential rates you might pay with TD Bank, the tool doesn’t show whether discount points are included in the rates you see, giving it 3 stars in this category.

  • No USDA loans. If you’re a lower-income borrower looking to buy in a more rural part of the country, you’ll have to look elsewhere for a no-down-payment USDA loan.

  • Only operates in 15 states. TD Bank’s footprint is limited, so only borrowers in a dozen-plus states — and Washington, D.C. — can use its products.

At the product level, TD Bank offers more types of mortgages. Bank of America lacks options like construction loans, second home loans, and buydowns, though its nationwide footprint is far wider than TD Bank’s 15-state one. Both offer a number of borrower incentives and down payment assistance options, as well as home equity lending and medical professional loans.

Bank of America mortgage review

Rocket Mortgage doesn’t have as many loan options as TD Bank, but it’s 1% down loan is a standout — especially for first-time homebuyers. It also offers up to $3,000 in credits toward closing costs but lacks options like HELOCs, medical professional loans, or construction loans, which TD Bank currently offers.

Rocket Mortgage review

Rates vary by borrower, but you can get personalized loan and rate options by filling out a short form on TD Bank’s website.

TD Bank requires at least a 620 credit score to use one of its low-down-payment mortgage options, including TD Right Step Mortgage?, TD Home Access Mortgage, and FNMA HomeReady? loans.

There are lots of ways to make your mortgage payment with TD Bank. You can pay online, over the phone, at an in-person branch, or via the mobile app. You can also transfer money from your TD Bank checking account.

Methodology:

Yahoo Finance reviews and scores mortgage lenders with quintile scoring in five primary categories: 1) Interest rates. Using 2023 Home Mortgage Disclosure Act data comprised of 10 million home loan applications, we score mortgage lenders on issued mortgage rates below or above the annual median of reporting lenders. 2) Affordability. A measure of loan product availability and the willingness of a lender to offer government-backed loans, low down payments, down payment assistance, and consideration of nontraditional credit. 3) Loan costs. HMDA data is again analyzed, and lenders are rated based on total loan costs compared to the annual median. 4) Rate transparency. The ability of a website user to obtain a mortgage interest rate estimate. We score lenders based on whether rates are enhanced with discount points or high credit score requirements, disclaimers revealing rate assumptions, sample advertised rates, and whether adjustable or no discount point rate estimates are available. 5) Online features. An analysis of the educational material, calculators, and additional resources available to users.

Review of Nationwide Multistate Licensing System (NMLS) data on regulatory actions can trigger a penalty to the score of any lender with a consumer mortgage-related administrative or enforcement action within the past five years.

Advertisers or sponsorships do not influence ratings.

Editorial disclosure for mortgages:

The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including interest rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the lender's website for the most current information. This site doesn't include all currently available offers.

This article was edited by Laura Grace Tarpley.