According to this article over at the CBC, Canadians love a good home equity line of credit – they’re practically addicted to that sweet sweet HELOC money at rock bottom rates.
“We are addicted for sure. Who wouldn’t be addicted to something so easy [to get]?” says 35-year-old Ali about the free-flowing lines of credit that have enabled him to splurge on the finer things in life.
“It’s easy, accessible cash at a very cheap price. The banks make it so easy for you to obtain it,” says the software engineer.
Some people say the national reliance on debt is a risk to our economy and to the lifestyles of the indebted. But the Canadian Bankers Association isn’t worried and spenders say they are aware of the risks:
While Ali and Haji like to spend, they believe they’re behaving responsibly and say they’re aware of potential pitfalls. That’s why they’re still undecided about another loan.
“If you get a line on this [house] and God forbid something happens to me or [my wife] and we are unable to sustain our lifestyle or stream of income that we have, then we would be in trouble and that may lead to us losing this house,” says Ali.
And that’s why some rooms in the family’s home remain empty. Ali shows CBC News his large, mostly barren master bedroom and talks about his grand plans to furnish it — sometime in the future.
“Without the credit line, it’s slow,” he laments.
But things could always change. The couple says just last week the bank called, inquiring if the family was interested in another loan.
Read the full article here.