Could you use a little extra cash? In today’s tough economy, who couldn’t? This week on Money Wise, we’re exploring an increasingly popular method of borrowing – a home equity line of credit. The problem – many Canadians don’t know what they are, and with household debt levels at record highs, HELOCs can add even more fuel to the fire.
The concept behind a Home Equity Line of Credit (HELOC) is simple – leverage your home in return for a hefty line of credit to draw from. However, it’s the underlying challenges associated with HELOC variable interest rates that makes a HELOC a tool best reserved for the thrifty and financially astute.