As inflation persists, homeowners are paying more attention to their home equity, but not taking advantage of it

According to TD Bank’s 2022 Home Equity Trend Watch survey, 47% of homeowners know the equity in their home, up from 32% in 2019.

CHERRY HILL, NJ, October 13, 2022 /PRNewswire/ — A recent survey of TD Bank, America’s Most Convenient Bank® found that 87% of respondents indicated an increase in equity since buying their home, but far fewer plan to tap into this potential source of funds over the next 18 months.

America’s Most Convenient Bank. (PRNewsFoto/TD Bank)

Many Americans have more equity in their homes than ever before, so using it can make financial sense

TD Bank’s HELOC Trend Watch is a national survey of more than 1,800 adult US homeowners who have purchased a home in the past 10 years using a mortgage. The survey examines trends surrounding the use of home equity.

Unleash Home Equity

While inflation reached its highest level in 40 years during the summer, 70% of respondents still consider themselves very or fairly stable financially. But with continued volatility in the economy and market, many Americans are exploring ways to cut unnecessary spending and pay off high-interest debt. Home equity lines of credit (HELOCs) and home equity loans can be a relatively low-interest way to access the equity that comes with owning a home. However, more than half (52%) of homeowners who had either had a HELOC or home equity loan before or never had one but know what it is, do not consider it at all or very unlikely to consider applying for either in the next 18 months. This despite an interest in renovations or debt consolidation.

“Many Americans have more equity in their homes than ever before, so using it to their advantage can make financial sense,” said Jon Gilles, head of direct-to-consumer lending at TD Bank. “When used responsibly, HELOCs and home equity loans are effective and affordable tools that can help pay off higher-interest debt, cover education costs, or afford home renovations, which adds value to the property.”

Sixty-five percent of participants who have debt other than their mortgage indicated that they would be interested in consolidating some or all of their debt under a lower interest rate loan, with 47% viewing this as the trait most important of their debt consolidation tactic.. And although HELOCs and home equity loans generally have lower interest rates than many personal loans, a third (33%) of those who have debt other than their mortgage and want to consolidate it at a rate lower interest, feel neutral or uncomfortable doing so. using their home as collateral. In fact, 43% of these respondents would prefer to use a personal loan. This could indicate a gap in understanding the benefits of tapping into home equity.

“Consumers should always consider their unique financial situation and speak with a lender first when exploring options for using the equity in their home,” said Steve Kaminsky, Head of Residential Lending at TD Bank. “Lenders can help borrowers understand which products fit their financial goals, current level of capital, and how they plan to use the money. They will also help you understand the current market so you can understand what your payments will look like and how they may change based on the current interest rate environment.”

Although debt consolidation continues to be a priority for many, the type of debt that homeowners carry varies. The survey found that 69% of participants who have debt other than their mortgage have credit card debt in the highest interest rate category for borrowers. Other forms of debt among these respondents include auto loans (43%), personal loans (32%), student loans (27%) and nearly 1 in 5 (19%) have medical debt.

Home renovations reign supreme

Renovations continue to be one of the most common uses for HELOCs and home equity loans. In fact, 43% of respondents who are planning or currently renovating their home intend to use a mortgage or home equity loan for their renovation projects. And supply chain challenges aren’t dampening consumer enthusiasm. Seventy-eight percent of those who have made speed their top priority in their renovation still plan to move forward. And nearly half (49%) of those who said overall costs were their top priority still plan to go ahead with renovations as labor and supply chain shortages further complicate the process. Kitchens were the most popular room/place to renovate (55%).

“As homeowners look for flexible loan options to fuel their renovation projects, home equity loans and HELOCs are great options to consider,” Kaminski said. “HELOCs, in particular, lend themselves to flexibility with the ability for the borrower to withdraw funds as needed. With supply chain disruptions and rising inflation continuing to impact the full cost of home renovations, flexibility will be key to accessing funds throughout the process.”

As renovation costs rise, many are also considering DIY projects when tackling home repairs. The study found that 42% of respondents currently planning or executing home renovations will hire professionals to do all the work, while 36% plan to do some of the work themselves and hire a professional to do all the work. other tasks.

Survey methodology

This report presents the results of a CARAVAN® survey conducted by Big Village among a sample of 1,813 U.S. adults ages 18 and older who currently own their home, last purchased a home in the past 10 years and took out a mortgage when they bought their newest home. These respondents are referred to as “owners” throughout the report.

About Big Village

Big Village, formerly ENGINE, is a full-service global media and marketing services company that enables clients to outperform in the present and win in the future through its wide range of marketing solutions including information, creative, media, data and technology. Founded in 2005, Big Village has its global headquarters in New York and 16 offices in North America, the UK, Europe and Asia-Pacific. Learn more about and follow @wearebigvillage.

About TD Bank, America’s Most Convenient Bank®

TD Bank, America’s Most Convenient Bank, is one of the 10 largest banks in the United States, providing more than 9.8 million customers with a full range of banking products and services for individuals, small businesses and – Atlantic, Metro DC, the Carolinas and Florida. Additionally, TD Auto Finance, a division of TD Bank, NA, provides vehicle finance and business services to dealerships. TD Bank and its subsidiaries also offer personalized private banking and wealth management services through TD Wealth Management.®. TD Bank is headquartered in Cherry Hill, New Jersey To learn more, visit Find TD Bank on Facebook at and on Twitter at and

TD Bank, America’s Most Convenient Bank, is a member of the TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canadaone of the top 10 financial services companies in North America. The Toronto-Dominion Bank trades on the New York and Toronto exchanges under the symbol “TD”. To learn more, visit



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