CHERRY HILL, N.J., Dec. 6, 2017 /PRNewswire/ -- HELOCs will be
getting a winter workout this season, according to recent research
from TD Bank, America's Most Convenient Bank®. More than
three quarters (80 percent) of homeowners with existing HELOCs who
responded that they were planning home renovations for the upcoming
winter season also said they would consider dipping into their home
equity for funding.
Savvy Winter HELOC Use
With an average HELOC size of
more than $84,000, half (51 percent)
of those surveyed stated they plan to spend at least $50,000 on renovations as winter
approaches.
"Immediate access to low-interest funds through a HELOC gives
homeowners peace of mind to adequately prepare for any season,
whether they need a new roof or updated insulation," said
Mike Kinane, Head of Consumer
Lending for TD Bank. "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."
Most Popular HELOC Uses
The top three uses for HELOCs
cited by respondents were for home renovations (32 percent),
emergency funds (14 percent) and education expenses (12 percent).
Homeowners who indicated that they did not borrow against their
HELOC over the past 12 months said it was because they either
didn't have a specific use for it or that they were saving it for
an emergency.
HELOC Borrowers Are Coming Back for More
TD Bank also
asked approximately 200 additional homeowners who participated in
last year's HELOC Reset Measure what happened when their draw
period came due this past year, and discovered that:
- Twice as many homeowners surveyed in 2016 who said they
intended to refinance their HELOC this year (13 percent) actually
did so (28 percent)
- Of those approaching their reset period who decided to
refinance, 68 percent kept a HELOC at the same amount or
higher
- Eighty-five percent of HELOC borrowers who chose to refinance
said the borrowing process was easier or as easy as expected
- More than half (52 percent) plan to stay in their homes for at
least 10 more years, giving them the opportunity to build
additional equity that can either be leveraged through an existing
HELOC refi or a brand new HELOC (after their current one has been
paid in full and closed)
"By alerting Customers well in advance of their HELOC reset
period, we're able to help them assess how their financing needs
may have changed," said Kinane. "A HELOC is useful for homeowners,
whether they use it for a large home-related expense, debt
consolidation, student loans, or for the security of emergency
funds."
Additional highlights and full data from the 2017 TD Bank HELOC
Survey are available upon request.
Survey Methodology
The HELOC study was conducted by
global research company MARU/Matchbox. Respondents were composed of
a nationally representative sample of 1,010 American homeowners,
with a margin of error of +/- 3.1%. Survey interviews were
conducted from October 18-25, 2017.
Data has been weighted by age, gender and region to reflect the
population.
About Maru Matchbox
MARU/Matchbox is a professional
services firm dedicated to improving its clients' business
outcomes. It delivers its services through teams of sector-specific
research consultants specializing in the use of Insight Community
and Voice of Market technology.
About TD Bank, America's Most Convenient
Bank®
TD Bank, America's Most Convenient Bank, is
one of the 10 largest banks in the U.S., providing more than 9
million customers with a full range of retail, small business and
commercial banking products and services at more than 1,200
convenient locations throughout the Northeast, Mid-Atlantic, Metro
D.C., the Carolinas and Florida.
In addition, TD Bank and its subsidiaries offer customized private
banking and wealth management services through TD
Wealth®, and vehicle financing and dealer commercial
services through TD Auto Finance. TD Bank is headquartered in
Cherry Hill, N.J. To learn more,
visit www.tdbank.com. Find TD Bank on Facebook at
www.facebook.com/TDBank and on Twitter at
www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD". To learn more, visit
www.td.com.
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SOURCE TD Bank