Friday, September 22

Canadians tap HELOCs as COVID-19 restrictions lift

The seasonally adjusted balance of home equity lines of credit rose 1% to $162 billion in February, the fastest monthly increase since 2012

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Canadians are increasingly tapping the equity in their homes for loans as higher real estate prices and the loosening of pandemic restrictions encourage spending.

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It’s more borrowing for Canadian households, which are already some of the most indebted in advanced nations, primarily due to large mortgage debts.

While interest rate hikes by the Bank of Canada this year may start to cool a real estate boom that has seen home values ​​surge by 50 per cent in the past two years, prices and sales remain at elevated levels.