Personal Finance

Personal Loan from TD

  • Last Updated:
  • Dec 27th, 2019 4:54 pm
[OP]
Newbie
Jan 17, 2019
18 posts
3 upvotes

Personal Loan from TD

Hello All,

I am doing some renovations this year and want to borrow some money from TD. I don't want to use my equity in the house to borrow, therefore a personal loan is what i am considering.

Does anyone have experience borrowing a large amount from TD? I need approximately $40,000. My credit score is close to 800, have a car loan and no other major loans. Just wondering what type of rate i can expect from TD. Also, Does TD have any penalties/Fees for paying personal loans early?

Thanks in advance
27 replies
Sr. Member
Mar 21, 2019
746 posts
727 upvotes
Why do you want to strap yourself down to TD?
If you’re open to other options you may want to check out
Motusbank, but their max is 35k which is pretty close to what you’re looking for.
https://www.motusbank.ca/Accounts/Borrowing

You can get pre-approved and know your rate with no affect to your credit score, until you accept the offer (if you do).

Also there is Borrowell where you can get pre-approved and know your rate as well without affecting your score.

So as you can see, there are other options.
Sr. Member
Feb 17, 2015
967 posts
357 upvotes
Windsor, ON
Motus bank does do a soft check looks like as mentioned it's using ERS 2.0 as my score there apparently is 625...yet it's 667 on ERS 1.0, the rates are way lower than borrowell though worth a shot in the future once my score goes back up, minimum for them is 650
Deal Guru
User avatar
May 8, 2009
14073 posts
11728 upvotes
Not Leask
How long do you want to borrow for? If within 10 months, then consider grabbing CC's from issuers with BT offers. BT promos are your cheapest borrowing outlet. You may have to grab a few to borrow $40k.
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[OP]
Newbie
Jan 17, 2019
18 posts
3 upvotes
Looked at their website and it seems like a better way to go over TD.
I think i would go for their LOC. Do you know if they have any hidden fees?
Deal Guru
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May 8, 2009
14073 posts
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Not Leask
eksealant wrote: Looked at their website and it seems like a better way to go over TD.
I think i would go for their LOC. Do you know if they have any hidden fees?
uLOC generally no account opening or closing fees. Just interest on daily balance. TD CT uLOC does not include no-fee e-transfers.
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Sr. Member
Mar 21, 2019
746 posts
727 upvotes
eksealant wrote: Looked at their website and it seems like a better way to go over TD.
I think i would go for their LOC. Do you know if they have any hidden fees?
If you’re referring to Motusbank, as I believe you are since you mention LOC, there are no hidden fees.
They do charge fees like NSF etc.. which is laid out in the agreements you sign

Image

So far the experience has been ok.
It did take just over a week from quote to final approval.
But there was a report in the Motusbank thread, that someone else only waited 6 days, so YMMV.
Member
User avatar
Jan 7, 2019
313 posts
289 upvotes
When you're borrowing from one of the big five banks for unsecured line of credit, they usually like to see some liquid savings in your account at a 1:1 ratio (1 dollar owned : 1 dollar line of credit).

They'll compute your total debt servicing to see if you qualify and if you do, the interest is charged if you use it. Normally unsecured line of credits are pricier than HELOCs; about prime + 1.5% upwards.

If you just need it for short term, like someone said above, use a balance transfer promotion on a credit card if you have it. If not, apply for the unsecured line of credit.
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[OP]
Newbie
Jan 17, 2019
18 posts
3 upvotes
Thank you

I want to take a loan for 4-5 year period, therefore credit cards are out of question.\

I have an unsecured line of credit with TD but they approved me for $5000 (Prime +5%) only but this was when i opened my bank account with them and i only asked for $5000. Since then i have used my line of credit and paid it back but TD won't increase my credit limit (pre-approval). I am making $65K a year so it's not that they can't see my payroll deposits. It's just a headache dealing with them. I was looking into a personal loan because i want to lock the interest rate.

Thank you everyone for your input, really appriciate.
Deal Fanatic
Nov 22, 2015
5732 posts
5213 upvotes
Any particular reason for not using the home equity?

We're talking about potentially a $1500+/year difference in interest payments..
[OP]
Newbie
Jan 17, 2019
18 posts
3 upvotes
My mortgage is with TMG and TD won't offer home equity for those type of Mortgages.
TD would love for me to bring the mortgage over and do a colleteral charge mortgage, no thank you
Deal Fanatic
Nov 22, 2015
5732 posts
5213 upvotes
eksealant wrote: My mortgage is with TMG and TD won't offer home equity for those type of Mortgages.
TD would love for me to bring the mortgage over and do a colleteral charge mortgage, no thank you
I guess your pre-payment charge is high? For $40k, the interest savings are huge... If you're close to maturity, I'd consider transferring the mortgage to whichever company and refinancing to 80% LTV

Better yet, would be a penalty-free refinance + rate blend on your current mortgage - if your mortgage provider offers this.
Deal Guru
User avatar
Mar 23, 2008
11890 posts
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Edmonton
eksealant wrote: Thank you

I want to take a loan for 4-5 year period, therefore credit cards are out of question.\

I have an unsecured line of credit with TD but they approved me for $5000 (Prime +5%) only but this was when i opened my bank account with them and i only asked for $5000. Since then i have used my line of credit and paid it back but TD won't increase my credit limit (pre-approval). I am making $65K a year so it's not that they can't see my payroll deposits. It's just a headache dealing with them. I was looking into a personal loan because i want to lock the interest rate.

Thank you everyone for your input, really appriciate.
The odds of getting an unsecured $40k loan when you’re making $65k/year and have a mortgage/property taxes on top of your loan payment seem slim... No offence intended.

C
[OP]
Newbie
Jan 17, 2019
18 posts
3 upvotes
I have a couple of years remaining on the current term. Refinancing would be the best option but i don't want to go through the mortgage approval process with the new rules and regulations.

I am hoping to get a fixed rate loan with the lowest rate possible and be able to pay it early without penalties. would be nice to know what rate people have been able to get from various banks.
TD's minimum is 6.45%, Motus bank is advertising 5.15%. Let's what else i come across.
Deal Fanatic
Nov 22, 2015
5732 posts
5213 upvotes
eksealant wrote: I have a couple of years remaining on the current term. Refinancing would be the best option but i don't want to go through the mortgage approval process with the new rules and regulations.

I am hoping to get a fixed rate loan with the lowest rate possible and be able to pay it early without penalties. would be nice to know what rate people have been able to get from various banks.
TD's minimum is 6.45%, Motus bank is advertising 5.15%. Let's what else i come across.
I wouldn't worry about rates until you know you can get approved... With a mortgage + car loan, I just don't see how you're going to qualify for another $40k. You realize that's like $1100 monthly payments?

Do you have a co-borrower on the mortgage?
Last edited by KanataKG on Jun 1st, 2019 4:19 pm, edited 1 time in total.
Deal Fanatic
Nov 22, 2015
5732 posts
5213 upvotes
To answer your other question, most personal loans are open and have no penalties for early repayment.
Sr. Member
Mar 21, 2019
746 posts
727 upvotes
CNeufeld wrote: The odds of getting an unsecured $40k loan when you’re making $65k/year and have a mortgage/property taxes on top of your loan payment seem slim... No offence intended.

C
Normally I would agree, but my experience with Motusbank says otherwise.
I used their soft check rate quote feature for a line of credit, where they determine by your credit score and income, just how much they’ll lend you.
With a 40k income, Motusbank pre-approved me for 35k PLOC., at what I’ll say is mid market rate.
I could select any amount between 5k and 35k, I chose 15k.
Now that’s not to say that had I asked for the full 35k, that they would have approved it, but I was pre-approved for it with them knowing my income.
Member
Feb 9, 2018
415 posts
298 upvotes
eksealant wrote: My mortgage is with TMG and TD won't offer home equity for those type of Mortgages.
TD would love for me to bring the mortgage over and do a colleteral charge mortgage, no thank you
Did you check other options? There are lenders who will happily register a charge on your house behind your existing lender for HELOC. Simplii as one comes to mind. My mortgage is with MCAP and HELOC with simplii and there were no issues. Rate offered was prime + 0.5.
[OP]
Newbie
Jan 17, 2019
18 posts
3 upvotes
sunbat wrote: Did you check other options? There are lenders who will happily register a charge on your house behind your existing lender for HELOC. Simplii as one comes to mind. My mortgage is with MCAP and HELOC with simplii and there were no issues. Rate offered was prime + 0.5.

I had given up on this as TD rep told (in December) that no financial institution will go second. What was the procedure like for you with simplii? Do they have offices/locations or everything is done online? Thank you

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