HELOC: friend or foe?

More and more Canadians are using a HELOC as a way to finance home renovations and as a cushion between jobs. But, the Bank of Canada wants to keep better track of HELOC use to be sure that Canadians don't get into the same sort of trouble the US found themselves in 10 years ago when homeowners owed more than their houses were worth!

HELOCS can be a blessing because there's no fixed repayment schedule, and borrowers are only expected to make interest payments without any penalties. But, this can increase overall debt and must be managed responsibly.