What Most People Don’t Know About Their HELOC (Home Equity Line Of Credit)
The Financial Consumer Agency of Canada released a report today regarding the state of HELOC’s (Home Equity Lines Of Credit) here in Canada.
The findings were shocking. Here are some takeaways:
- About 1/4 of Canadians are only making the bare minimum on their payments, the report finds.
- 41% of 25-34 Year Old Canadian home owners were making minimum payments every month.
- 22% polled were using the Home Equity Line Of Credit for debt consolidations.
- 70% of owners did not know that there are fees to transfer the HELOC to another lender.
- 85% of owners did not know that the Interest Rate on their HELOC can be increased at any time by their lender
- 88% of Canadian home owners did not know there is a maximum limit on a HELOC to 65% of your homes value
What do you think about the findings, did you find any of these answers to be a surprise?