As home values remain strong and borrowing needs diversify, homeowners in 2025 are increasingly turning to Home Equity Lines of Credit (HELOCs) to fund renovations, consolidate debt, or prepare for major life expenses. Among the leading options, TD Bank’s HELOC continues to be a top contender—offering flexibility, rate control, and a borrower-friendly structure.

This post explores the TD Bank HELOC in detail, highlighting key features, benefits, fees, and the application process. For those considering tapping into their home equity, this overview provides the essential information needed to make a smart financial move.

Benefits of a TD Bank HELOC

Borrowers in 2025 are particularly interested in financial tools that offer flexibility, control, and affordability. The TD Bank HELOC delivers in several areas:

1. Flexibility to Borrow as Needed

One of the biggest advantages of a TD Bank HELOC is that it allows borrowers to withdraw funds as needed rather than taking out a lump sum upfront. There is no minimum draw, meaning homeowners can use as little or as much of their line of credit at any time during the draw period. This structure helps minimize unnecessary interest charges and supports responsible borrowing.

2. Ability to Lock in Fixed Interest Rates

With the option to lock in fixed rates on outstanding balances during both the draw and repayment phases, TD Bank gives homeowners control in uncertain interest rate environments. Borrowers can lock fixed rates on amounts starting at $5,000 and hold up to three fixed-rate balances simultaneously. This hybrid approach—variable rate flexibility with fixed-rate security—makes TD Bank’s HELOC particularly attractive for those seeking stability without losing access to revolving credit.

3. Affordable Fee Structure

TD Bank’s HELOC has competitive fees, including a $99 origination fee, a $50 annual fee for lines over $50,000, and no setup fees for locking fixed rates. While there is an early termination fee of 2% of the principal (capped at $450) if the account is closed within 24 months, the overall fee structure is reasonable compared to many other lenders.

4. Overdraft Protection Option

The TD EquityAccess PLUS version of the HELOC includes optional overdraft protection for linked TD Bank checking accounts. This safety net ensures that checking account transactions won’t be declined or bounced due to insufficient funds, using the HELOC as a backup source.

Interest Rates and Terms

TD Bank HELOC interest rates are variable and tied to the prime rate, which, as of April 2025, stands at 7.5%. The actual rate offered to borrowers is calculated based on a margin above or below prime, depending on the borrower’s credit profile, debt-to-income ratio, and total credit line.

The bank advertises a range from Prime - 0.01% to Prime + 4.44%, with more favorable rates typically offered to:

• Borrowers with excellent credit
• Credit lines of $200,000 or more
• Low loan-to-value (LTV) ratios

Borrowers looking for rate predictability have the option to convert portions of their balance into fixed-rate loans with terms that do not extend beyond the original HELOC repayment schedule.

Fees and Costs to Expect

Here is a summary of the typical fees associated with TD Bank’s HELOC:

• $99 origination fee at account opening
• $50 annual fee for credit lines starting at $50,000
• An early termination fee of 2% of the outstanding balance (maximum of $450) if closed within 24 months
• Closing costs may apply for lines exceeding $500,000, co-op properties, or investment real estate.
• Mortgage discharge fees may be charged in refinancing situations

These fees are transparent and generally lower than industry averages, though homeowners should account for them in the total cost of borrowing.

Accessing HELOC Funds

TD Bank provides borrowers with several convenient and flexible methods to access funds from their Home Equity Line of Credit (HELOC), making it easy to manage withdrawals based on individual preferences and financial habits.

• Online banking through a secure portal: Borrowers can log in to TD Bank’s user-friendly online platform to view balances, transfer funds, and make payments—offering a high level of security and convenience.
• TD Bank mobile app: The mobile app offers full access to HELOC accounts, allowing users to check balances, initiate transfers, and schedule payments from their smartphones or tablets.
• Personalized HELOC checks: TD Bank provides physical checks linked to the HELOC account, useful for borrowers who prefer the traditional method of writing checks.
• In-person access at any TD Bank branch: Customers who need assistance with more complex transactions can visit any branch to access their HELOC funds and receive support from staff.

This multi-access model supports both traditional banking preferences and tech-savvy users who manage their finances digitally.

Application Process

Applying for a TD Bank HELOC begins online or by phone, though final closing must occur in person at a TD Bank branch. While this may not appeal to borrowers seeking a 100% digital experience, the process is straightforward and transparent.

Required Documentation:

• Valid photo ID (driver’s license or passport)
• Pay stubs from the past 30 days
• W-2 forms from the past two years
• Tax returns if self-employed
• Proof of homeowners insurance (and flood insurance if applicable)

Customer support is available through a dedicated lending team, in person, by phone, and via the bank’s virtual assistant for FAQs and quick inquiries.

Conclusion

For homeowners in 2025 seeking a reliable and flexible way to tap into their home equity, TD Bank’s HELOC offers a compelling blend of benefits. With flexible borrowing, rate lock capabilities, competitive fees, and added features like overdraft protection and rate discounts, it’s a well-rounded product from a trusted institution.

TD Bank also stands out for its strong customer service reputation, offering personalized guidance throughout the borrowing process. While the in-person closing requirement might not appeal to everyone, those who value personal service and financial transparency will find TD Bank’s HELOC a strong match for their needs.