A new report from TD Bank shows that 80% of HELOC borrowers who said that they were planning home renovations for the upcoming winter season also said they would consider dipping into their home equity for funding.
The report reveals that those homeowners have plenty of scope to use their equity with an average HELOC size of more than $84,000. More than half will use around $50,000 for renovations. Emergency funds and education expenses are also among top 3 uses for home equity.
“Using a HELOC to make renovations during the winter is a smart, cost-effective option for homeowners because they can take advantage of reduced prices on materials during annual holiday sales, and access a larger pool of contractors who may now be working on more flexible off-season schedules," said Mike Kinane, Head of Consumer Lending for TD Bank.
In addition to the new survey, TD Bank asked 200 HELOC borrowers what happened when their draw period came due in the past year.
Of those approaching their reset period who decided to refinance, 68% kept a HELOC at the same amount or higher.
More market update:
Many homeowners are taking action to ensure their homes are winter-ready and realizing the benefits of using home equity rather than credit cards to finance renovations.