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Homeowners Express a Strong Desire for Renovation Financing, TD Bank Study Finds Nearly 60 Percent Would Use a HELOC for Home Renovations, 53 Percent of Millennials Are Considering Such a Move

Almost a decade after the U.S. housing bubble burst, property values are making homeowners more optimistic and ready to invest in their home, according to recent research from TD Bank, America’s Most Convenient Bank.

Among the roughly 1,350 homeowners surveyed nationally in late December and early January for TD Bank’s first Home Equity Sentiment Index, 56% of respondents believe their home’s value has increased, and 60 percent would tap that rising equity to finance renovations, with 53% of Millennials considering such a move.

“Consumers have been reluctant to start home renovations in recent years because of all the uncertainties in the economy,” said Mike Kinane, Senior Vice President, Home Equity, TD Bank. “It’s encouraging to see a growing appetite for these projects. A home equity line of credit (HELOC) can be an attractive way to finance renovations. HELOCs give homeowners the flexibility to borrow needed funds over time, during the renovation process, and then offer an interest-only repayment option throughout the draw period which is typically 10 years.”

Here is an overview of results from the Home Equity Sentiment Index Survey:

  • Renovations at the top of most consumers’ lists include kitchens (42 percent), bathrooms (25 percent) and other household projects (11 percent).
  • Homeowners are attracted to HELOCs because the loans allow them to borrow as needed over time (32 percent) and provide greater flexibility for use of the loan (24 percent).
  • Interest rates are the biggest factor (57 percent) in choosing a HELOC, followed by trust in the lender (23 percent).

For Millennials, HELOCs are Attractive

  • Among those surveyed, Millennials (30 percent) are more likely to have a current HELOC than Gen Xers (16 percent) or Baby Boomers (12 percent)
  • Millennials are also more likely (15 percent) to apply for a HELOC in the next 18 months than people in any other age groups.
  • Millennials would like to use a HELOC to renovate a home (53 percent).

“With a tight home inventory environment, HELOCs give Millennials the freedom to make necessary renovations to existing properties and bring their dream homes to life,” said Kinane.

Knowledge is Power

Many homeowners remain uncertain and confused about the terms and conditions of a typical HELOC. But Millennials express confidence in their knowledge of how HELOCs work and want to use the loan to create their dream home.

  • Millennials are most likely and Baby Boomers least likely to understand when their HELOC’s draw period ends.
  • The majority (63 percent) of Baby Boomers also don’t understand what impact their HELOC’s expiration will have on their monthly payment, compared to 9 percent of Millennials.
  • Over half (55 percent) of Baby Boomers have no plan for what to do when their loan’s draw period ends, compared to just 6 percent of Millennials. The majority (68 percent) of Millennials plan to refinance their loan with their existing lender once their draw period concludes.

To help consumers with their home renovation projects, TD Bank is launching the Rolling Renovation tour to offer financing guidance and renovation inspiration to homeowners up and down the East Coast. The tour begins in February and will roll on through May, stopping in cities from Maine to Florida. For more information on the Rolling Renovation tour, visit

In conjunction with TD Bank’s Home Equity Sentiment Index results, TD Economics today released a report on the conditions and outlook for housing and renovation activity. You can review the report here.

Survey Methodology
The HELOC study was conducted by global research company Vision Critical. Respondents were composed of a nationally representative sample of 1,365 American homeowners, with a margin of error of +/- 2.7 percent. Interviews were completed from Dec. 29, 2015 through Jan. 8, 2016. Data has been weighted by age, gender and region to reflect the population.

About Vision Critical
Vision Critical provides a cloud-based customer intelligence platform that helps companies build engaged, secure communities of customers they can use continuously, across the enterprise, for ongoing, real-time feedback and insight.

About TD Bank, America’s Most Convenient Bank®
TD Bank, America’s Most Convenient Bank, is one of the 10 largest banks in the U.S., providing more than 8 million customers with a full range of retail, small business and commercial banking products and services at approximately 1,300 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas andFlorida. In addition, TD Bank and its subsidiaries offer customized private banking and wealth management services through TD Wealth®, and vehicle financing and dealer commercial services through TD Auto Finance. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit Find TD Bank on Facebook at and on Twitter at

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

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