Achieve Loans vs. TD Bank HELOC: what’s the difference?

If you're planning a renovation or looking to consolidate high-interest debt, a HELOC could put your equity to work. A HELOC is a line of credit secured by your home that allows you to borrow, repay, and borrow again up to your credit limit during a set draw period.

Two lenders worth comparing are Achieve Loans and TD Bank. Both offer a HELOC but they're built differently. Achieve Loans offers a fixed-rate HELOC with a 5-year draw period. TD Bank's HELOC has a variable rate and a longer draw window. The sections ahead break down how each one handles rates, repayment, fees, and eligibility so you can decide which structure fits your situation.

Achieve Loans and TD Bank HELOCs at a glance

TD Bank’s interest-only draw period

The biggest structural difference between these two HELOCs shows up in how you pay during the draw period. TD Bank allows borrowers to make interest-only HELOC payments for roughly 10 years. That means you're not required to pay down the principal balance during that window, though you could choose to. When you only pay the interest, the amount you owe never goes down, and the minimum payment amount spikes when the repayment period starts. Also, you won’t free up that portion of your credit line to borrow again. 

HELOCs from Achieve Loans work differently. Payments during the 5-year draw period include both principal and interest. You're paying down what you owe from the start, which reduces the balance over time rather than deferring it.

Interest-only payments keep the monthly obligation lower in the short term, but tend to cost more in total interest charges over the life of the loan. Principal-plus-interest payments free up available credit and help you make headway against your debt. The right kind of loan depends on your cash flow, whether you want to borrow more, and how quickly you want to reduce the balance.

How the two HELOCs compare on rates

Rate structure is where these two HELOCs diverge most sharply. Achieve Loans offers a fixed-rate HELOC, which means your interest rate stays the same for the life of the loan. TD Bank's HELOC has a variable rate, so the rate could move up or down over time depending on broader market conditions. TD Bank caps its variable APR at 18% as of September 2026. In September, 2026, Achieve Loans’ highest rate was 15.17%.

The rate type distinction matters more than it might seem at first glance. According to the Consumer Financial Protection Bureau (CFPB), most HELOCs carry variable rates. A fixed-rate HELOC is less common, and it removes the uncertainty of future rate increases. If rates climb, a variable-rate borrower's monthly payment climbs with them. A fixed-rate borrower's payment stays the same.

If a predictable HELOC rate matters to you, choose a fixed-rate credit line. You can find out if you qualify with no obligation through Achieve Loans. 

One more thing to keep in mind about interest. HELOC interest might be tax-deductible when the funds are used to buy, build, or substantially improve the home that secures the loan. Talk to a tax professional about your situation. 

What repayment looks like during the draw period

A draw period is the window of time when you can actively borrow against your line of credit. The draw period is followed by a repayment phase. These two lenders structure that window quite differently.

TD Bank's draw period runs 10 years. Once the draw period ends, the line closes to new borrowing and you enter a repayment phase of 20 years, during which payments cover both principal and interest. TD Bank's page notes that if you pay interest only during the draw period, you'll still owe the full amount borrowed and your monthly payment will increase when the interest-only period ends.

Achieve Loans’ HELOC draw period is 5 years. Payments are fully amortized during the draw period, based on your balance at that time. During those 5 years, you can also borrow, repay, and borrow again up to your credit limit. Once the draw period closes, payments continue on the remaining balance across whichever term you selected: 10, 15, 20, or 30 years total.

Your monthly payment to either lender could vary depending on how much you borrow and when. Both HELOCs are mortgages, which means they are secured by your home. If you don't repay the loan, you could lose your home.

Eligibility and where each HELOC is available

Eligibility requirements vary between these two lenders, and a few of the differences could affect whether you're able to apply in the first place.

TD Bank doesn’t say what minimum credit score you need to apply for a HELOC there.

At TD Bank, you can apply for a HELOC against one-to-four-family primary or secondary residences. Maximum CLTV and DTI are not disclosed. CLTV is the total amount you owe against the home, including your mortgage if you still have one and the HELOC you want. DTI is the percentage of your pre-tax income that goes to debt and housing each month. 

Achieve Loans accepts credit scores starting at 600, which opens the door for borrowers who might not meet the minimums other lenders require. Eligibility also factors in your debt-to-income ratio (up to 50%), and your combined loan-to-value ratio (up to 90%). 

Fees and closing costs

TD Bank charges a $99 origination fee at closing. After the first year, a $50 annual fee kicks in for the life of the line. And if you close the account within 24 months, TD Bank applies a 2% early-termination fee on the outstanding balance, capped at $450. That fee is waived if you refinance into another TD loan or sell the property. For credit lines above $500,000, additional closing costs apply.

Achieve Loans charges no prepayment penalty, so you can pay off and close your HELOC early without an extra charge. Closing fees range from $750 to $10,304 depending on the line amount and state requirements.

When a fixed-rate HELOC could be the better fit

A fixed-rate HELOC is a great option for someone who wants the stability of a rate that will never change. That kind of predictability is useful when you're budgeting around a specific project, a kitchen remodel, for instance, and you don't want rising rates to push your costs higher.

Variable-rate HELOCs, on the other hand, sometimes start with a rate that could be lower than a comparable fixed rate. The initial advantage is usually temporary, and disappears if rates climb. Borrowers who are comfortable with some uncertainty and plan to repay the balance quickly might find a variable rate works fine. 

Prequalify through Achieve Loans with a soft credit check that doesn’t affect your credit score.