Canada has a high number of people who have home equity lines of credit (HELOC). Frequently, these people only pay the interest on these loans each month, which has caused the average HELOC to grow to $70,000. For disciplined borrowers, a HELOC can be beneficial, for instance, to consolidate debt as well as set up an emergency fund. Additionally, people can use them to add value to their home by renovating or boosting their retirement savings plan contribution.

“With borrowing rates on the rise, HELOCs can be dangerous in the wrong hands. But for disciplined borrowers, they can be a lifeline when times are tough and a springboard to grow household wealth.”

Read more: https://www.bnnbloomberg.ca/personal-investor-4-ways-helocs-can-make-life-easier-1.1166646