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What Can a Home Equity Loan or Line of Credit Be Used For?

A TD Bank Home Equity Loan (HELOAN) or TD Bank Home Equity Line of Credit (HELOC) offer flexible financing options that can be used to help you consolidate debt, renovate or remodel your home, make a major purchase, or be a lower cost alternative to a traditional mortgage refinance.

Consolidate high-interest debt using home equity financing

Save money on interest paid and replace multiple bills with one simple home equity loan or line of credit payment.

  • TD Bank Home Equity Lines of Credit

    A TD Bank Home Equity Line of Credit (HELOC) may be best if you plan to consolidate monthly bills now and possibly in the future.

    • Borrow what you need, as you need it, up to your credit limit
    • Pay back what you use interest-only for first 10 years
    • Low variable interest rate allows you to save on interest charges compared to many other forms of credit
    • Fixed-rate options also available on balances greater than $5,0001

  • TD Bank Home Equity Loans

    A TD Bank Home Equity Loan (HELOAN) may be best if you plan to consolidate debt and pay off your monthly bills only once.

    • Receive your loan in one lump sum
    • Stable and predictable monthly payments
    • Choose the payback term that works for you from 5 to 30 years
    • Low fixed rate allows you to save on interest charges compared to many other forms of credit

Renovate your home using home equity financing

Whether you’re planning a do-it-yourself project or a major renovation or remodel, a home equity loan or line of credit can help you increase your home’s value using the equity you’ve already built.

  • TD Bank Home Equity Lines of Credit

    A TD Bank Home Equity Line of Credit (HELOC) may be best if the home improvement project you're considering may have unexpected costs.

    • Cover unplanned costs without derailing your project
    • Borrow what you need, as you need it, up to your credit limit
    • Pay back what you use: interest-only payments for first 10 years followed by 20-year repayment of outstanding balance plus interest
    • Variable interest rates, with a fixed-rate option available1
    • Revolving credit line provides flexibility to fund multiple projects, with different costs, over time

  • TD Bank Home Equity Loans

    A TD Bank Home Equity Loan (HELOAN) may be best if your renovation or remodel has a set budget or cost.

    • Receive your funds in one lump sum
    • Fixed-rate with flexible term options of 5 to 30 years that provide budget-friendly solutions
    • Stable and predictable monthly payments

Pay off your mortgage and get cash out or refinance with home equity financing

An alternative to traditional mortgage refinancing, you can use the equity you have in your home to payoff your existing mortgage, lower your monthly payment, and get access to additional funds you may need.

  • TD Bank Home Equity Lines of Credit

    A TD Bank Home Equity Line of Credit (HELOC) may be beneficial if you want access to a revolving line of credit based on your home's equity after using your HELOC to pay off your existing mortgage.

    • Avoid the expense of a traditional mortgage refinance with no closing costs in most cases2
    • Access your cash-out equity funds, as you need them, with a new HELOC
    • Only pay back the interest on what you use for the first 10 years

  • TD Bank Home Equity Loans

    A TD Bank Home Equity Loan (HELOAN) may be beneficial if you also want to get a lump sum of cash from the value in your home after using some of the loan to pay off your existing mortgage.

    • Avoid the expense of a traditional mortgage refinance with no closing costs in most cases2
    • Access cash-out equity funds in one lump sum with your new HELOAN
    • Begin paying down your new loan immediately with set monthly payments

Make a major purchase using home equity financing

Use a home equity loan or line of credit to pay for large purchases such as education expenses3, a vacation, major appliances or a vehicle.

  • TD Bank Home Equity Lines of Credit

    A TD Bank Home Equity Line of Credit (HELOC) can be useful when you want to make a major purchase and prefer not to use cash or dip into emergency savings or investments.

    • Borrow what you need, as you need it, up to your credit limit
    • Credit line amounts starting at $25,000
    • Low variable interest rate allows you to save on interest charges compared to many other forms of credit
    • Option to lock in a fixed rate1
    • Easy access to your funds with personalized checks, at any TD Bank location, in Online Banking or the TD Bank app

  • TD Bank Home Equity Loans

    A TD Bank Home Equity Loan (HELOAN) provides access to all your funds at once so you can immediately make a major purchase without using funds, like investments, which may increase in value.

    • Get all your funds deposited at once
    • Loan amounts starting at $10,000
    • Low fixed rate allows you to save on interest charges compared to many other forms of credit
    • Stable and predictable monthly payments

Calculate your home equity rate and payment

Use TD Home Loan Match to see rate and payment options to help you find the best loan to get cash out of your equity.

Calculate my rate

Home equity financing vs other lending options

See how home equity financing compares to personal loans, a cash-out mortgage refinance and credit cards.

Learn more

Get the most out of your home's equity

1You must have an eligible, existing TD Bank Home Equity Line of Credit to have the option to fix the interest rate on all or part of the outstanding principal balance at any time during the Draw Period or Repayment Period (“Fixed Rate Option”). The maximum term of any Fixed Rate Option cannot extend beyond the Repayment Period. The minimum amount upon which you may fix the rate is $5,000. You may have up to three (3) Fixed Rate Options outstanding at any one time. The Fixed Rate Option rates are based on the current Home Equity Loan rates for a comparable term and any applicable rate discounts at the time the Fixed Rate Option request is made.

2Closing costs exist on loans and lines of credit greater than $500,000, investment properties, and co-ops.

3TD Bank does not offer student loans.

Loans subject to credit approval. Equal Housing Lender 

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