Strong Interest in HELOCs Highlights Homeowner Optimism in Economy and Housing Market, According to Citizens Bank Survey
March 21 2019 - 8:00AM
Business Wire
New Research Reveals Generational Divide on Use
of Credit Lines
An overwhelming 87% of homeowners with access to Home Equity
Lines of Credit (HELOCs) say they are optimistic about their
property’s current value, with 74% interested in starting a home
improvement project in the next 12 months, according to research
released today by Citizens Bank. In its new HELOC Survey, Citizens
also found that younger borrowers are more apt to use HELOCs for
purposes other than home improvement. According to the survey,
those with a HELOC report that top drivers for optimism are:
- Seeing value of home increasing in
recent years (65%)
- Affordability (50%)
- Strong economy (43%)
- Current national housing market
(31%)
“Property values are at record highs across most of the U.S.,
driving increases in consumer optimism,” said Brendan Coughlin,
President of Consumer Deposits & Lending at Citizens Bank.
“Having access to a HELOC provides real-time access to their
growing home equity, giving customers flexibility to improve their
home, manage their finances, and peace of mind in case of an
unexpected expense.”
The HELOC Survey also revealed that there are significant
differences in how HELOCs are used across generations. It found
that millennials preferred other financing options to HELOCs for
their home improvement projects compared to older homeowners (60%
vs 47%). While traditionally the majority of HELOCS are used for
home improvement projects (70%), millennial homeowners are
significantly more likely than those over 40 to use a HELOC for
non-traditional uses, including:
- Financing a new business venture (45%
vs 19%)
- Big-ticket purchases (44% vs 35%)
- Taking time off work to support or care
for family (44% vs 24%)
- Taking a vacation (36% vs 17%)
“Whether consolidating debt, financing education or accessing
emergency funds, HELOCs can enhance your life, not just improve
your home,” says Coughlin. “While there are many borrowing options
available, Citizens works closely with our customers to provide
them with the information they need to make the best choice on how
to access their capital.”
Citizens Bank is a leading home equity lender and is committed
to helping consumers pay for home improvements, education costs,
major expenses, cash management and more. With no application or
set up fees, no closing costs and no appraisal fee, Citizens Bank
wants to help make the process easier for consumers to open and
access a HELOC.
Survey Methodology
This custom online survey was conducted among 1,003 HELOC
engaged homeowners, 25+ in the U.S. who currently have or are
planning to have a home equity line of credit in the next 12-18
months using the field services of YouGov. The survey was developed
to garner novel insights on U.S. homeowners’ perceptions,
behaviors, and experiences regarding HELOCs.
About Citizens Financial Group,
Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and
largest financial institutions, with $160.5 billion in
assets as of December 31, 2018. Headquartered in Providence,
Rhode Island, Citizens offers a broad range of retail and
commercial banking products and services to individuals, small
businesses, middle-market companies, large corporations and
institutions. Citizens helps its customers reach their potential by
listening to them and by understanding their needs in order to
offer tailored advice, ideas and solutions. In Consumer Banking,
Citizens provides an integrated experience that includes mobile and
online banking, a 24/7 customer contact center and the convenience
of approximately 2,900 ATMs and approximately 1,100 branches in 11
states in the New England, Mid-Atlantic and Midwest regions.
Consumer Banking products and services include a full range of
banking, lending, savings, wealth management and small business
offerings. In Commercial Banking, Citizens offers corporate,
institutional and not-for-profit clients a full range of wholesale
banking products and services, including lending and deposits,
capital markets, treasury services, foreign exchange and interest
rate products, and asset finance. More information is available
at www.citizensbank.com or visit us
on Twitter, LinkedIn or Facebook.
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Rory Sheehan781 655 3931rory.p.sheehan@citizensbank.com
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