Are Canadians Putting Their Homes At Risk With HELOC's
Those without a HELOC did even worse. On average, they correctly answered only three of eight true-or-false questions. The poll of 1,501 adult Canadians, commissioned by the TitlePLUS, the title insurance arm of Lawyers Professional Indemnity Co. (LawPRO), was conducted online late last month.
While home equity lines of credit can provide people with low interest rates and flexible lending terms, “there’s more to this arrangement than meets the eye,” said real estate lawyer Ray Leclair, the acting vice-president of public affairs for LAWPRO.
“Without understanding all of the implications of this type of borrowing, consumers could risk their future credit or run into issues when they sell or refinance their home.”
With interest rates flirting with rock-bottom levels, Canadians are taking on debt in record levels. Home equity credit lines, which allow people to borrow at low rates because they use their house as security, have become a popular and fairly easy way for Canadians to access cash. The fear, as with all debt, is what will happen when interest rates rise.
