Deciding between a loan and a line of credit

They’re both ways of borrowing money. Depending on your needs, one may be a better choice for you.

What are the differences?

A loan lets you borrow a specific amount of money in one lump sum. It’s ideal for single transactions, such as major purchases, home renovations or paying off old debts. Your loan plus interest gets repaid over an agreed-upon length of time.

A line of credit gives you ongoing access to funds that you can use and re-use as needed. You’re charged interest only on the amount you use. A line of credit is ideal when your cash needs can increase suddenly, such as with home renovations or education.

Compare, and see what’s best for your needs


Lines of Credit

Types of Loans:

  • Personal Loan
  • TD On-the-spot RSP Loan
  • TD CarryForward RSP Loan
  • Vehicle Loan

Types of Lines of Credit:

  • Personal Line of Credit
  • Student Line of Credit
  • Investment Secured Line of Credit
  • TD Home Equity FlexLine

Credit Limit:

Personal Loan: $5,000 to $50,000

TD On-the-spot RSP Loan: $5,000 to $50,000

TD CarryForward RSP Loan: $5,000 to $50,000

Vehicle Loan: Depends on the value of the vehicle.

Credit limit:

Personal lines of credit: $5,000 to $50,000

Student Line of credit: Undergraduate: $1,000 to $80,000

Student Line of credit: Graduate & Professional: $1,000 to $350,000

Investment Secured Line of credit: ranging from 50% to 100% of the value of the investment type.

TD Home Equity FlexLine: Up to 80% of the value of your home.

Interest rates:
Choose between a fixed rate and a variable rate based on the TD Prime Rate.

Interest rates:
Most lines of credit have a variable rate based on the TD Prime Rate. In some cases, a fixed rate is also an option.

No fees are charged to setup unsecured loans. A security registration fee applies to vehicle loans (with the amount varying by province).

No fees are charged to setup unsecured lines of credit. Registration fees may apply to lines of credit secured by investments or homes.

Your loan plus interest is repaid over time according to an agreed-upon schedule. If payments are paused, interest will be charged on those deferred amounts.

For most lines of credit, you can pay as little as the minimum amount set out in your monthly statement and agreement with TD. For example, on a Personal Line of Credit, you don’t have to pay more than the interest that’s due that month.

Borrow Better with TD Loans and Lines of Credit

Frequently Asked Questions

Personal loan payments can be monthly, weekly, bi-weekly and semi-monthly. Each payment consists of a portion of interest and a portion of principal. The proportion of interest is highest in the first payment, and it is reduced as the principal is repaid.

Interest is calculated daily on the outstanding principal balance and is payable based on your repayment schedule (monthly, weekly, bi-weekly or semi-monthly).

It's easy to view the details of your loan in EasyWeb:

  1. Log in to EasyWeb using your username Access Card number and EasyWeb password.
  2. From My Accounts > Accounts, click on your loan name in your account summary.

We offer four main types of Lines of Credit.

Personal Line of Credit

  • This helps with everyday spending and major purchases, too.

Student Line of Credit

  • Get the funds you need to cover the costs of a post-secondary education.

Investment Secured Line of Credit

  • Use your eligible investments as collateral to borrow at a lower interest rate vs. an unsecured line of credit.

TD Home Equity FlexLine

  • With your home as collateral, you’ll pay less in interest than with a personal line of credit.

Personal Loan/Line of Credit Calculator

Use our calculator to see how much your monthly payment might be.

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