How Home Equity Financing Compares With Other Lending Options

Find out how home equity loans and lines of credit compare as financing options to personal loans, a cash-out mortgage refinance and credit cards.

Factors to consider when you want to borrow money

When trying to determine what financing option is best for you, it's important to consider a variety of factors as each individual circumstance is different. The answers to these questions will help guide your focus as you identify the lending solution that's right for you.

  1. How much do you need to borrow?

  2. How quickly do you need access to funds?

  3. Do you own your home?

  1. If you own your home, how long do you plan to live there?

  2. How close are you to paying off your current mortgage?

  3. Are there promotional lending offers you can take advantage of?

Personal lending options

Explore summaries of three lending options, then take a deeper dive with our articles that compare each with home equity financing.

  • Personal loans

    • Personal loans offer quick access to funds and are typically available in a variety of terms
    • Interest rates usually fall somewhere between a secured loan and a credit card
    • Like some other financing options, many lenders can provide some form of instant-approval and funding within just a few days
    • With a personal loan you can pay for an expense, such as a vacation, with a fixed cost and expect to repay the amount you borrow within 3-5 years
  • Mortgage cash-out refinance

    • Refinance your existing mortgage with a new, larger loan and receive the leftover balance as cash
    • Typically allows you to borrow funds at the lowest interest rates possible, as the loan is secured by your home
    • Keep in mind that the larger loan amount will likely increase your monthly mortgage payment and reset the term of your mortgage
  • Credit cards

    • A new credit card can be a fast way to obtain funding with many card issuers providing instant-approval and quick access to the credit line
    • Credit cards may have higher interest rates than other lending options—try looking for card promotions offering lower rates
    • The card's credit limit should be considered as it may not be high enough to cover large expenses, such as a vehicle purchase, education or major home renovation

Home equity lending options

  • A home equity loan (HELOAN) and home equity line of credit (HELOC) both let you to leverage the equity you've built in your home to cover a variety of expenses
  • A HELOAN can be used to cover expenses with fixed costs, and typically has a lower interest rate than an option like a personal loan as it is secured by your home
  • With a HELOC, you can draw funds as you need them and only repay what you use—just like a credit card
  • Home equity financing can be a good option for many homeowners and usually takes upwards of 30 days before you receive cash

Home equity lending resources

Articles, tools and videos to help you explore your home equity lending options.

  • Learn how the equity in your home can help you can consolidate debt, renovate your home or make a major purchase.

  • What you can expect during the home equity loan and line of credit process—from application to closing.

  • Building and maintaining a strong credit score can help improve your lending experience.

  • Want help choosing?

    Answer a few questions to get loan and line of credit options that best match your borrowing goals.

  • What info do I need to apply?

    Find out what information and documents you'll need for your HELOC or HELOAN application.

  • Get a personalized home equity rate quote

    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.

Explore TD financing solutions

  • TD Home Equity Line of Credit or Loan

    Get the money you need to do the things you want—renovating your home, consolidating debt and more

  • TD Bank Credit Cards

    Choose the card with the rewards you want, like Cash Back for everyday purchases

  • TD Bank Personal Loans

    With a TD Fit Loan, you don't need to use your home or other assets to borrow money

  • TD Bank Mortgages

    Whether you're buying or refinancing, we have the right mortgage for you


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