TD Home Equity FlexLine Reviews

The TD Home Equity FlexLine is a popular home equity line of credit (HELOC) product offered by TD Bank to Canadian homeowners. It allows them to access credit at rates lower than those of other unsecured products like credit cards or personal loans.

This review will examine the key features, benefits, drawbacks, eligibility requirements, rates, fees, and application process for the TD Home Equity FlexLine. If you’re considering tapping into your home equity, this guide covers everything you need to make an informed decision in today’s mortgage landscape.

What is the TD Home Equity FlexLine?

The TD Home Equity FlexLine is a home equity line of credit offered by TD Bank. It is a revolving line of credit that uses your home equity as collateral, allowing you to borrow up to 80% of your home’s value.

With a HELOC like the TD Home Equity FlexLine, you can withdraw funds as needed until you reach your approved credit limit. It works similarly to a credit card in that sense. The flexible repayment options allow you to pay interest-only payments or pay down the principal when it suits you.

How Does the TD Home Equity FlexLine Work?

The TD Home Equity FlexLine allows you to borrow against the equity that has built up in your home. For example, if your home is worth $500,000 and you owe $300,000 on your mortgage, you have $200,000 in equity.

With the TD Home Equity FlexLine, you could qualify to borrow up to 80% of your home value. In this example, that would mean access to a credit line of up to $400,000 (80% of $500,000).

The TD Home Equity FlexLine can be divided into two portions:

• Revolving Portion: This works like a standard HELOC, with a flexible credit limit, variable interest rate, and flexible repayment.
• Term Portion: The term portion has set repayment periods ranging from 1 to 5 years, with fixed or variable interest rates similar to those of a traditional mortgage.

Feature	Revolving Portion	Term Portion
Interest rate	Variable, tied to TD Prime Rate	Fixed or Variable
Prepayment	Can pay off anytime without any repayment charges.	– A lump sum payment of up to 15% – Prepay as you want – Flexible payment frequency
Access to funds	Withdraw anytime up to credit limit	Must transfer funds from revolving portion to term portion

This dual structure makes the TD Home Equity FlexLine unique in providing both flexible access to funds and the option to lock in low fixed rates.

Once approved, you can access the funds via checks, ATM withdrawals, online banking transfers or in person at a TD branch. You can withdraw as much as you need up to your credit limit.

You must make at least the minimum monthly payment on your TD Home Equity FlexLine each month. This covers the interest owed on the outstanding balance. You can pay more to pay down the principal if you choose.

What Can You Use the TD Home Equity FlexLine For?

A TD Home Equity FlexLine can provide funds for a variety of purposes, including:

• Home renovations or improvements
• Consolidating high-interest debt
• Major purchases like a car, boat or RV
• Education expenses
• Investing
• Starting a business
• Taking a vacation

By leveraging the equity in your home, you can access lower-interest-rate funds rather than relying on higher-cost borrowing options like credit cards. However, discipline is required to avoid overspending.

Who is Eligible for the TD Home Equity FlexLine?

To qualify for a TD Home Equity FlexLine, the primary requirements are:

• Credit Score: TD recommends a minimum credit score of 620, but scores of 700+ will qualify you for better rates.
• Income: There is no minimum income, but sufficient stable income is required to make the payments. Higher incomes improve your rate quote.
• Home Equity: You need at least 20% equity in your home to qualify for a TD Home Equity FlexLine.

Talk to a TD mortgage specialist for pre-approval to confirm exactly how much you may qualify for based on your specific financial situation.

What Are the Rates and Fees for the TD Home Equity FlexLine?

The rates and fees associated with the TD Home Equity FlexLine include:

• Interest Rate: The current TD Mortgage Prime Rate is 5.10% (TD Prime Rate + 0.15%), the last change in March 2025.
  • The variable interest rate on the revolving portion is tied to the TD Prime Rate. TD offers potential discounts of 0.25% if you have a TD bank account.
  • On the Term Portion, you can choose a fixed rate from 1 to 5 years, currently ranging from 6.94% to 8.00% (posted rate) or from 4.59% for special rates.
• Origination Fee: $99 to set up the TD Home Equity FlexLine
• Annual Fee: $50 per year

Rates depend on your individual financial circumstances, including income, debts, credit score and property value. TD provides an online calculator to get an estimated personalized rate quote. Those with higher credit scores and income may qualify for lower rates.

What Are the Benefits of the TD Home Equity FlexLine?

There are five main advantages to choosing the TD Home Equity FlexLine.

• Lower Interest Rate: The rate is lower than that of unsecured loan products like credit cards or personal lines of credit.
• Access to Equity: It allows you to leverage up to 65% of your home’s value.
• Flexible Access: With the revolving portion, you can withdraw funds as needed without reapplying.
• Payment Flexibility: You can pay interest-only or pay down principal without penalties.
• Ability to Lock-In Rates: Using the Term Portion, you can lock in a low fixed rate from 1 to 5 years on all or part of the balance.

What Are the Drawbacks of the TD Home Equity FlexLine?

There are also 5 potential downsides to consider with a TD Home Equity FlexLine.

• Your home is used as collateral, meaning foreclosure is possible if you fail to repay the debt.
• The variable interest rate could increase, leading to higher monthly payments.
• It takes discipline to avoid overspending or racking up excessive debt.
• Minimum payments cover interest only, so the balance will not decrease unless you pay extra.
• Closing costs and fees apply (details are further below).

How Do You Apply for the TD Home Equity FlexLine?

You can begin the application process for a TD Home Equity FlexLine online or by phone. However, you must complete the final steps in person at a TD Canada Trust branch.

Here is an overview of the application process:

• Apply online at td.com or call 1-866-222-3456 to begin.
• Be prepared to provide personal identification, income, employment, and asset documentation.
• TD will assess your property value and remaining mortgage balance to determine your equity.
• A credit check is performed to evaluate your credit score and debts.
• TD provides conditional approval if you qualify based on the information provided.
• You then must book an in-branch appointment to provide original documents and sign the final paperwork.
• The TD Home Equity FlexLine can be opened once all documents are verified and conditions met.
• The total time to fund your approved limit is approximately 4-6 weeks from the completed application.

TD offers dedicated customer support for home equity lending questions by phone and online.

Are There Alternatives to the TD Home Equity FlexLine?

The TD Home Equity FlexLine is one of several options to leverage your home equity in Canada.

All of the major banks in Canada offer HELOC products similar to the TD Home Equity FlexLine, but rates and terms vary.

• RBC Homeline Plan – RBC offers a competitive HELOC with no application fees, no minimum draws, and discounts for high credit scores.
• Scotia Total Equity Plan STEP – Scotia’s HELOC allows borrowing up to 80% of your home’s value. No appraisal fee for limits under $100K.
• CIBC Home Power Plan – CIBC offers personalized rates with discounts for existing clients. Borrow up to 80% of home equity.
• BMO ReadiLine – BMO offers a HELOC with 25-year amortization and 10-year repayment. Discounts 0.5% for existing clients.
• National Bank All-In-One – National Bank offers a HELCO without income verification for limits under $50K. Higher loan-to-values than other lenders.

If you need funds quickly, consider alternatives like:

• Home Equity Loan – This provides a one-time lump sum payment at a fixed interest rate instead of a revolving credit line.
• Cash-Out Refinance – You can refinance your home for more than what you currently owe and get the difference in cash. This will combine your debts under a new mortgage.
• Second Mortgage – Add a second mortgage on your home and your existing mortgage. This effectively taps your equity, much like a HELOC.

Talk to an independent mortgage broker to review the options and determine what best suits your financial situation.

The Bottom Line

The TD Home Equity FlexLine provides a flexible way to access your home equity credit at lower interest rates compared to unsecured products. It offers the unique ability to split into a revolving credit line and fixed term installment loan. This combines the benefits of interest-only payments when needed with the option to lock in low rates.

However, as with any loan against your home equity, it’s critical to exercise caution. Be conservative when estimating your borrowing power, have a clear repayment plan, and use funds only for productive purposes, not frivolous spending. Get professional financial and tax advice to ensure this product aligns with your overall financial goals.

TD Home Equity FlexLine FAQs

Article Sources

1. TD Home Equity FlexLine (HELOC)