TD Bank Survey: Homeowners Plan to Tap Into Equity for Renovations

(Image via Maria Ovchinnikova/Pexels.com)

TD Bank, Cherry Hill, N.J., released its HELOC Trend Watch survey, finding that 38% of homeowners who are renovating their properties within the next two years intend to use a home equity line of credit or home equity loan for funds.

Fifty-seven percent of respondents who previously or never had a HELOC or HE Loan said they are likely to apply for one over the next year and a half. That figure is up 9% from last year.

“Home equity continues to be one of the more affordable ways that current homeowners can access funds to improve the condition of their home and increase its value,” said Jon Giles, Head of Real Estate Secured Lending Strategy & Support at TD Bank. “What’s most important is to borrow responsibly–for things like renovations, education costs, large home purchases or debt consolidation–ensuring the money is used to benefit a homeowner’s overall financial position.”

Homeowners are generally optimistic about their equity, the survey found–with 83% of respondents saying they believe their home equity has increased in the past year.

Renovations are top of mind for homeowners–with 69% currently renovating or planning to renovate in the next two years. Reasons for renovating include cosmetic at 43%, improving outdoor spaces, also at 43%, upping a home’s eco-friendliness at 29% or that their home is lacking key features at 28%.

The top two spaces for renovation are kitchens and bathrooms, both at 54%.

These renovations aren’t just for the homeowners, TD Bank noted. Eleven percent of those renovating are pursuing their desired home projects with the intent to sell, and 36% of homeowners say they plan to sell in the next two years.

The  HELOC Trend Watch is a national survey of more than 1,800 adult homeowners who purchased a home within the past 10 years using a mortgage loan and currently own their homes.