Home equity lines of credit (HELOC) may put some Canadians at risk of over-borrowing, Home equity lines of credit (HELOC) may put some Canadians at risk of over-borrowing, according to a report released today by the Financial Consumer Agency of Canada (FCAC). to a report released today by the Financial Consumer Agency of Canada (FCAC).

The report, titled Home Equity Lines of Credit: Market Trends and Consumer Issues, centers on the use of HELOCs by consumers, on how banks offer them and the benefits and risks of borrowing against home equity.

Readvanceable mortgages are complex. The report found that many consumers would benefit from more and clearer information about how readvanceable mortgages work, the applicable fees, terms and conditions, and the risks potentially involved. Providing consumers with more resources would put them in a position to make informed decisions about whether to finance their home purchases with readvanceable mortgages. 

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