Younger homeowners more likely to be HELOC borrowers
Millennial homeowners are more likely to be current and future users of home equity lines of credit than either Gen-Xers or baby boomers.
Over the next 18 months, 35% of the millennials responding said they would consider applying for a HELOC versus 15% of Gen-Xers and 4% of baby boomers, a survey of over 1,350 U.S. homeowners conducted for TD Bank found.
Nearly four in 10 millennials are current HELOC users, compared with 31% for both the Gen-X and baby boomer generations. Most millennials, 64%, had cited renovations as their primary purpose for the proceeds.
However, 29% of all respondents admitted they were only somewhat informed about or not confident in their knowledge of using a HELOC.
"It's encouraging to see so many people — especially the younger generation — taking advantage of the increase in their home equity through a HELOC, but at the same time, it's surprising that many HELOC users lack confidence in their knowledge about how to use them," said Mike Kinane, TD Bank's general manager, home equity products, in a press release.
Half of those surveyed would go to a bank branch to apply for a HELOC, while approximately one-quarter would prefer to apply online.