HELOCs can play a vital role in your finance toolkit

Being able to tap into quick cash from the equity in your home can still come in handy for those with the ability and discipline to pay it back quickly.

By last summer, the use of HELOCs had fallen 13 per cent since the Bank of Canada rate hiking cycle began in early 2022, according to MortgageLogic.news strategist Rob McLister. During that same period the average HELOC interest rate rose to 7.7 per cent from 2.95 per cent.

Some of the drop in HELOC use can be attributed to stricter lending requirements, but being able to tap into quick cash from the equity in your home can still come in handy for those with the ability and discipline to pay it back quickly. 

HOW A HELOC WORKS