TD Bank Mortgage Review: Is It the Right Mortgage Option for You?
Written by
Angela Mae
Edited by
Emily Gadd
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TD Bank is an FDIC-insured financial institution that offers all manner of banking and financial services, including home lending solutions. Whether you’re buying, refinancing, building or renovating a home, chances are TD Bank has something for you.
The lender even offers low-interest home equity lines of credit (HELOCs) and home equity loans for borrowers who need quick access to their existing home equity.
How the TD Bank Mortgage Process Works
One major plus to TD Bank is its convenient mortgage lending process, which it clearly lists on its website. That means no surprises for prospective borrowers.
Whether you’re buying a house or refinancing an existing loan, here’s how the process works:
- Get your docs together and check your credit score.
- Speak with a Home Lending Loan Officer via phone or visit an in-person TD Bank branch to start the prequalification process.
- Get a signed purchase and sale agreement, then complete TD Bank’s formal application.
- Within 24 hours of applying, you’ll get a conditional decision.
- If approved, you’ll receive a Loan Estimate detailing your closing cost within three business days.
- Get a home inspection and home appraisal done on the property you want to buy.
- Respond to any requests for additional information.
You can apply online if desired. Once you apply, TD Bank will give you a conditional decision on your mortgage application and follow up via phone to go through the next steps. It will also send you a closing costs estimate within three days of receiving your application. TD Bank mortgage loans typically close within 30 to 45 days.
If you need extra support throughout the application process, you can reach out to your loan officer on the phone via 1-866-325-4516. Or you can visit a physical branch to get answers to your questions.
Pros and Cons of TD Bank
Pros:
- Multiple lending solutions available (including home loans and home refinancing)
- 24/7 customer service with weekend availability
- 30- to 45-day closing process
- Transparent mortgage lending process
- Purchase a home with as little as 3% down
- Flexible underwriting requirements
- Down payment assistance available to make homeownership more affordable
- Interactive tools to help you find an affordable mortgage
- Easy access to a mortgage advisor
- Extensive mobile banking options
Cons:
- Mortgage interest rates not readily available
- Closing costs and other fees not readily available
- Physical branches only in 15 states and D.C.
TD Bank Mortgage Loan Options
TD Bank has your standard home loan offerings as well as some special programs. These include:
- Fixed-rate mortgages to lock in your rate and monthly payment
- Adjustable-rate mortgages for lower initial monthly payments
- Jumbo loans for homebuyers who need to borrow a large amount (and meet stricter eligibility requirements)
- VA mortgages for active-duty U.S. military, veterans and qualifying spouses
- FHA loans for first-time buyers and those seeking a lower down payment option (as low as 3.5%)
- Medical Professional Mortgage for recently graduated doctors and other medical professionals
- Construction loans for renovating or building a new home
TD Bank also offers alternatives to conventional mortgages. They include:
- FNMA HomeReady: 15- or 30-year, fixed-rate loans for single-family homes with cancellable mortgage insurance and a 3 percent down payment that can come from gifted funds
- TD Right Step Mortgage: 30-year, fixed-rate mortgage that doesn’t require borrower-paid mortgage insurance, but does require a 3 percent down payment that must come from your own funds
- TD Home Access Mortgage: Mortgage financing for many property types (including single-family, condos and manufactured homes) that doesn’t require borrower-paid mortgage insurance and comes with up to a $10,000 lender credit
TD Bank Mortgage Rates and Fees
TD Bank has some handy homebuying tools you can — and should — use before you apply for your home loan. Use the mortgage loan payment estimator, a calculator to help you determine how much you can afford to spend on a house, and check out the interactive guide to various mortgage options.
You can also get a personalized home loan rate through the TD Home Loan Match. You’ll need to answer a few questions about your home purchase price, down payment percentage, credit score, property type, property use and zip code to get a rate estimate.
Here’s an example of what a $300,000 home purchase (primary residence) with 20% down might cost in North Carolina (assuming you have good credit):
| Loan Type | Monthly Payment | Rate | APR | Closing Costs |
|---|---|---|---|---|
| 15-year fixed-rate | $2,025 | 6.000% | 6.211% | $3,216 |
| 5/6 ARM (30-year) | $1,497 | 6.375% | 7.101% | $3,216 |
| 7/6 ARM (30-year) | $1,537 | 6.625% | 7.112% | $3,216 |
| 3/6 ARM (30-year) | $1,537 | 6.625% | 7.310% | $3,216 |
| 30-year fixed-rate | $1,617 | 7.125% | 7.260% | $3,216 |
TD Bank vs. Other Mortgage Lenders
TD Bank has its merits as a mortgage lender and banking institution, but it’s important to compare several lenders before choosing one. Here’s how TD Bank stacks up against a few of its competitors.
| Feature | TD Bank | U.S. Bank | SoFi Mortgage |
|---|---|---|---|
| Apply Online | Mostly | Sometimes | Yes |
| Average closing time | 30 to 45 days | 30 to 45 days | Around 43 days |
| In-Person Help | Yes | Yes | No |
| Mobile App | Good | Great | Good |
| Loan Types | Many standard and specialty loans | Not as many specialty loans | Similar options |
| Clear Fees | Somewhat | Somewhat | Mostly yes |
| Best For | Convenience and 24/7 customer support | In-person help, rate transparency | Online process, 90-day rate lock |
Who Should Consider TD Bank?
TD Bank is best for:
- First-time buyers seeking more affordable mortgage options
- Digital-savvy borrowers
- Specialty home loans
- Mortgage refinancing
However, TD Bank may not be ideal for:
- Borrowers seeking a completely digital experience
- Those with poor credit
FAQ
- Is TD Bank a legit mortgage company?
- Yes, TD Bank is FDIC-insured and offers mortgage loans and refinancing solutions in 15 states and the District of Columbia.
- How fast can I get preapproved?
- In most cases, you'll receive conditional approval within 24 hours.
- What credit score do I need for TD Bank?
- This depends on the loan type, but you'll need a credit score of 620 or above in most cases.
- Can I refinance through TD Bank?
- Yes, TD Bank offers mortgage refinancing. You'll still need to meet certain requirements -- like a minimum credit score -- but refinancing could potentially get you a better interest rate, repayment term or monthly payment.
- Does TD Bank charge high fees?
- While you can get an estimate of closing costs and APRs through TD Bank's online calculator, you won't know the exact fees until after applying. It might help to speak with a loan officer via phone about the typical fees based on your credit score, home purchase price and other factors.
