Deciding between a loan and a line of credit

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

TD Loans

Choose the right loan for your needs.

TD Lines of Credit

Get ongoing access to the cash you need — now and in the future, too.

Personal Loan/Line of Credit Calculator

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

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