The creditworthiness
of home equity borrowers will become a larger issue if housing prices drop again, as they did a decade ago.
The BorrowSmart web site offers information and tools for consumers and credit counselors to
help home equity borrowers «Borrow Smart».
Jacqueline Hansen from CBC News discusses with Laurie Campbell, Credit Canada CEO how higher interest rates could
hit home equity borrowers hard.
This means that even a small 1 % increase in long - term rates could result in at least a 20 % reduction in the amount of loan proceeds available to a borrower, equating to tens of thousands of dollars LESS
of home equity borrowers can access as rates rise.
In 2001, about 12 percent of
home equity borrowers were subprime.