Top perks
Low down payment options
In addition to the standard low down payment loan options like FHA loans, TD Bank Mortgage offers some unique loan products designed for new borrowers. The TD Right Step Mortgage provides 30-year fixed-rate mortgage loans with no private mortgage insurance, and with down payments starting at 3%. Borrowers are required to complete an approved home-buyer education program.
Medical professional loan
TD Bank Mortgage offers a mortgage specifically designed for physicians and dentists (including residents and fellows) who are in the earlier stages of their career. Because income tends to start low and increase sharply over time in these professions, this loan offers higher qualification amounts and no down payments.
Construction loans
Loans for new construction and renovation projects are a specialty of TD Bank Mortgage. The bank offers mortgages that pay builders in installments as a home is being completed, as well as loans designed to purchase existing homes in need of substantial renovations. These loans have features such as interest-only payments during construction, ability to pay off existing loans on the property, and more.
Several ways to apply
Borrowers can apply for a TD Bank Mortgage loan online, by phone, or in person at one of the bank's branches that has a mortgage loan officer. While many banks have been cutting back on in-person customer service, TD Bank Mortgage still prioritizes customer service. This is definitely a strength, especially for people who might not know what type of mortgage is best for them and could use professional guidance. Unlike many of its competitors that offer phone- and branch-based applications, TD Bank's mortgage process can be started online.
TD Bank's mortgage rate estimator provides a ballpark interest rate estimate based on the home's location, loan amount, and the borrower's estimated credit tier. It gives borrowers a good idea of the bank's current rates.
No mortgage limits
Many banks have pumped the brakes on jumbo loans, but not TD Bank Mortgage. It certainly makes sense -- the bank's primary markets along the East Coast include some of the more expensive places to buy a home.
What could be improved
Rate transparency
TD Bank Mortgage allows customers to fill out a short form and see an estimated interest rate based on their credit tier, location, and loan amount. However, it's worth mentioning that this estimator gives standard rates for 30-year and 15-year conventional loans and FHA 30-year loans. It doesn't provide rates for any of TD Bank Mortgage's specialty loan products, nor does it show options for different levels of closing costs. There also isn't a way for borrowers to get a customized rate estimate without a hard credit pull.
Geographic availability
This is perhaps the biggest drawback to TD Bank Mortgage and is a dealbreaker for many home buyers. TD Bank is a Canadian bank, and its U.S. presence is limited to the East Coast for the time being. It only offers mortgage loans in:
- Connecticut
- Delaware
- District of Columbia
- Florida
- Maine
- Maryland
- Massachusetts
- New Hampshire
- New Jersey
- New York
- North Carolina
- Pennsylvania
- Rhode Island
- South Carolina
- Vermont
- Virginia
If your state doesn't touch the Atlantic Ocean, you're probably out of luck.
Higher credit score requirement
TD Bank Mortgage says the minimum credit score required for a mortgage is 620. Many other lenders allow borrowers to apply for an FHA loan with a 580, and in some cases even lower.