1. TD Bank | HELOC 2017
March 2017

2. Overview
The 2017 TD Bank HELOC survey focuses on understanding both HELOC Users as well as Non-Users, and addresses topics such as sources of information, product use and considerations.
Methodology
An online survey was conducted among a nationally representative group of Home Owners. In total 1356 online interviews were completed. Subgroups of interest include:
Hispanic (105)
NYC (134)
Boston (101)
Philadelphia (109)
Florida (160)
Fieldwork was completed March 3-9, 2017.
This report presents the findings in summary charts and tables. The statistical cross-tabulations are reported under separate cover.
Data is weighted by age, gender and region to reflect the Home Owners population.
Circles indicate groups that are statistically higher, or statistically lower
HELOC Ownership
2017 Results
2016
2017
NYC
Boston
Philly
Florida
Hispanic
29%
15%
20%
13%
18%
25%
14%
23%
37%
51%
47%
46% 9%
19%
22%
49%
40%
34%
36%
32%
Yes, currently have a HELOC
Yes, I have previously had a HELOC
Never had a HELOC
Unsure what a HELOC is
34%
34%
Have/Had HELOC
Q2. Have you ever had a Home Equity Line of Credit (HELOC)?

3. Credit Need (Next 18 Months)
Overall 41% are at least somewhat likely to apply for credit in the next 18 months. Of those, 71% would at least consider a HELOC.
Across all Homeowners, 47% would consider applying for a HELOC in the next 18 months. Highest in New York and among those that already have experience.
Likelihood to Apply For Credit in Next 18 Months
2017 Results
44%
22%
13%
17%
35%
48%
12%
Extremely likely
Very likely
Somewhat likely
Not very likely
Not at all likely
41%
NYC
Boston
Philly
Florida
Hispanic
User
Non User
28% 4% 7%
11%
15%
27%
18% 6%
19%
21% 8%
17%
20%
26%
16%
23%
30%
24% 9%
14%
32%
42%
41%
22%
40%
Likelihood to Apply For a HELCO in Next 18 Months
Credit Seekers
Overall
2017 Results: Overall
47%
NYC
Boston
Philly
Florida
Hispanic
User
Non User
35%
15% 9%
14%
21%
41% 6%
32%
33%
24%
45%
26%
31%
52%
58%
61%
34%
63%
Definitely Consider
Explore HELOC as option
Would not consider
71%
Q2A. How likely are you to take out a line of credit or loan of any kind in the next 18 months?
Q3. How likely are you to apply for a Home Equity Line of Credit (HELOC) in the next months?

4. Next Steps | Channels Used & Financial Institutions Considered
If/When taking the next step towards a HELOC, half anticipate going into a Branch/Store
Just over half (55%) would compare institutions. Two thirds of Homeowners with HELOC experience would go to their primary bank.
Next Steps Toward a HELOC
NYC
Boston
Philly
Florida
Hispanic
User
Non User
40%
56%
51%
38%
47%
22%
26%
21%
18%
27%
10% 5%
15%
23%
19%
11% 8% 3% 7%
2017
2016
Branch/Store (Face-to-face)
/Online (Digital)
Rep. outside of branch/store (Face-to-face)
Phone
Mobile/Smart Phone
51%
27%
13% 8%
N/A
Financial Institutions Considered
2017 Results
2017
2016
NYC
Boston
Philly
Florida
Hispanic
User
Non User
55%
51%
43%
44%
48%
67%
34%
40%
41%
45%
47%
30%
54% 5% 9%
16%
11% 3%
12%
Primary Financial Institution
Compare 2-4 Financial Institutions
Research more than 5
40%
47%
13%
Q6. What channel are you most likely to use when taking the next step toward completing a HELOC application?
Q7. When researching your Home Equity loan options, how many financial institutions do you typically look at?

5. Applying for HELOC | Factors to Consider
Interest rates are by far the most influential factor when considering a HELOC. Homeowners look for lower rates as they compare institutions. Other benefits are the flexibility that HELOC’s provide in terms of borrowing time and use of funds.
Most influential In HELOC Decision
2017 Results
NYC
Boston
Philly
Florida
Hispanic
User
Non User
39%
47%
44%
43%
41%
48%
16%
19%
23%
21%
18%
20%
25%
14%
24% 8%
15%
11% 1% 3% 9% 5% 2%
Interest rates
Loan amount
Trust in my lender
Fees
Draw period length
Most Valued Compared to Other Credit Options
2017 Results
NYC
Boston
Philly
Florida
Hispanic
User
Non User
33%
32%
39%
21%
43%
12%
19%
22% 7%
16%
17%
15%
14%
10% 8% 6% 9% 3%
11% 5% 4%
13%
Low Interest rates
Allows me to borrow over time as I need it
Greater flexibility for loan use
Provides cash/down payment to buy or renovate
Provides beneficial annual tax deductions
Doesn't require commitment to a specific amount
Allows interest only payments during the draw period
Q8. [Rank 1 Summary] How influential [USER: were / NON USER: would] each of the following factors be in your decision?
Q9. What do you/would you value most about using a Home Equity Line of Credit (HELOC) as opposed to other payment options?

6. Home/Property Value and Loan Consideration
Over half (55%) feel their home value has increased in the last months. This increases to 69% among those with current or past HELOC experience. More than half of Homeowners would be looking for a loan amount of less than $50,000. Those in NYC and HELOC users are more likely to look for a HELOC that is $100,000 or more.
Home Property Value Over Last Months
2016
2017
2017 Results
NYC
Boston
Philly
Florida
Hispanic
User
Non User
68%
72%
37%
59%
53%
69%
47%
29%
23%
56%
38% 3% 5% 7%
 0% 2% 6%
Increased
Stayed the same
Decreased
Most Valued Compared to Other Credit Options
2016
2017
2017 Results
NYC
Boston
Philly
Florida
Hispanic
User
Non User
40%
45%
58%
60%
44%
36%
69%
18%
33%
21%
24%
22%
29%
43%
16%
34%
35%
13%
Less than $50,000
$50,000-$100,000
$100,000+
Q11. Which of the following is most applicable to your home/property value over the last 12 to 18 months?
Q12. What size of loan would you look to apply for if considering or using a Home Equity Line of Credit (HELOC)?

7. Confidence & Fixed Rates
Confidence in HELOC’s and how to use them is on par with nearly 40% saying they are very/extremely confident.
One half of Homeowners would ask for a fixed rate if they were considering a HELOC – significantly higher among those who have product experience (62%).
Confidence in Knowledge of HELOC’s
2017 Results
NYC
Boston
Philly
Florida
Hispanic
User
Non User
40%
56%
51%
38%
47%
22%
26%
21%
18%
27%
10% 5%
15%
23%
19%
11% 8% 3% 7%
2016
2017
Extremely confident
Very confident
Somewhat confident
Not very confident
Not at all confident
39%
38%
Likelihood of Asking for A Fixed Rate
2017 Results
NYC
Boston
Philly
Florida
Hispanic
User
Non User
57%
52%
40%
53%
48%
62%
45%
37%
43%
50%
39%
41%
33%
42% 5%
10% 8%
13%
Very Likely
Maybe
Not likely
Q18. How confident are you in your knowledge of Home Equity Line of Credit (HELOC) loans and how to use them?
Q16. If you were to consider using a HELOC now, how likely would you be to ask to fix your rate?

8. HELOC Uses Use of HELOC 2016 2017 1st Use
Two thirds would use a HELOC for home renovations or improvements, consistent with Home renos are the top use (47%).
On average Homeowners have used/would use a HELOC for two items (2.0).
Use of HELOC
2017 Results
NYC
Boston
Philly
Florida
Hispanic
User
Non User
62%
68%
66%
61%
65%
64%
42%
22%
29%
28%
34%
32%
25%
24%
18%
30%
26%
21%
27%
16%
23%
13%
12%
20%
14%
11%
19%
15% 7% 5%
10% 8% 2% 3%
2016
2017
1st Use
60%
27%
25%
17%
18%
11%
10% 9%
Home Renovations/Improvements
Major Home Purchases
Debt Consolidation
Emergency Funds
Vehicle Purchase
Medical and Healthcare Expenses
Education Expenses
Travel/Vacations
Day-to-Day Expenses
47% 7%
14% 8% 5% 4% 2%
Q10. What specifically have you or would you use a HELOC Home Equity Line of Credit (HELOC) for?
Q10A. And which of the following would you use it for first?

9. Home Renovations 42% Could Afford a Home Reno without a HELOC
If they had a HELOC, half of homeowners (54%) would renovate their kitchen, with roughly one third (35%) stating that they would renovate it first. Top reasons to renovate home are to increase it’s value and to update the look of a room.
Renovation
All Renovations: 2017
42% Could Afford a Home Reno without a HELOC
NYC
Boston
Philly
Florida
Hispanic
User
Non-User
62%
44%
51%
50%
46%
58%
52%
41%
45%
53%
26%
15%
21%
22%
29%
19%
37%
11%
18%
27%
28%
14%
12%
20%
35%
23%
17%
13% 7% 5%
24% 9% 2%
2017
Reno 1st
Kitchen
Bathroom
Backyard
Living room
Bedroom
Add a room
Basement
Dining room
Other
35%
22% 7% 5% 9% 6% 2% 8%
Top Reason to Renovate
2017 Results
NYC
Boston
Philly
Florida
Hispanic
User
Non-User
27%
30%
28%
37%
40%
35%
29%
39%
36%
15%
12% 7% 9%
11%
19% 4% 3% 1% 5% 8% 2% 6%
Increase my home's value
Do not like the look of the room/it’s outdated
I finally can afford to do so
I want to sell my home in the near future
To 'keep up with the Jones'
Other
I don't want to renovate
2017 Reults
Q20A. If you were to use a HELOC to renovate, which part(s) of your home would you renovate?
Q20. What room in your home would you renovate first?
Q14. What is the #1 reason for why you would want to renovate your home?
Q15. Could you afford a home renovation out-of-pocket right now without taking out a HELOC