86% of home equity product users view them as important to their financial safety net; 70% of all homeowners say they build financial confidence

Current financial uncertainty is keeping many potential home sellers on the sidelines, as interest-rate unpredictability continues to play a major role in homeowner decisions. According to a new survey from TD Bank, America’s Most Convenient Bank®, nearly three-quarters (74%) of homeowners report that they plan to remain in their current home over the next two years, and nearly six in ten (58%) say the rate on their existing loan is influencing their decision not to sell.

“Although recent interest rate reductions have begun to shift the housing conversation, overall activity remains subdued, as many homeowners are reluctant to move and forego their current favorable mortgage rates,” said Steve Kaminski, Head of Residential Lending at TD Bank. “As a result, we are seeing an increasing number of individuals leveraging their home equity as a means to enhance their financial position.”

TD Bank’s HELOC Trend Watch is a nationwide survey of more than 2,000 homeowners who have purchased a home within the past 10 years using a mortgage loan. The survey explores how homeowners are building and leveraging equity to help them achieve their long-term financial objectives.

Home Equity Products Helping to Bolster Financial Stability

In an environment marked by financial uncertainty, home equity has emerged as an essential consideration for many households. Of those who have accessed home equity products, 86% say a home equity line of credit (HELOC) is an important part of their financial safety net, and 70% of all homeowners agree that a HELOC can help them manage expenses and boost financial confidence.

Additionally, 82% of homeowners recognize the substantial advantages of using a HELOC, citing benefits such as flexibility for home repairs, renovations, educational expenses or unforeseen emergencies (59%), lower interest rates relative to many other types of credit (42%), and the opportunity to consolidate higher-interest debt into a single loan (36%).

The process of building home equity is regarded as a long-term, multi-generational financial strategy, with 68% of those surveyed viewing their home as a means of creating generational wealth. This sentiment is especially prevalent among Generation Z homeowners (78%) and those intending to undertake renovations within the next two years (77%).

Rising Demand for Debt Consolidation

Debt burdens remain high, with 84% of homeowners carrying non-mortgage debt, and 65% of these homeowners' maintaining balances of $10,000 or more. These financial pressures are prompting many homeowners to explore consolidation strategies as a means of managing their obligations more effectively. Seven in ten homeowners with non-mortgage debt (70%) say they would consider consolidating their debt into a single loan with a lower interest rate, with some viewing their homes as a potential resource for this purpose.

Current usage of HELOCs and home equity loans stands at 30%, led by Generation Z (41%) and Millennials (38%). Home equity products serve not only as a financial safety net, but also as a proactive approach for households seeking to simplify and stabilize their debt portfolios.

Building Long-Term Value Through Renovation

With a slow housing market keeping many from moving, homeowners are increasingly opting to personalize their residence to better suit their lifestyles. HELOCs and home equity loans have become popular financing tools for substantial improvement projects, with 53% reporting utilizing these options for renovations and 41% for major home purchases, such as furniture and maintenance supplies. Notably, younger homeowners are driving this trend in strategic spending, as evidenced by 48% of Millennials using HELOCs or home equity loans for major purchases.

Two in three homeowners (66%) are currently renovating or planning to renovate in the next two years. Among this group, 43% want to enhance outdoor spaces, while 40% are focusing on initiatives designed to boost home equity. Two-thirds (67%) of homeowners have at least $100,000 in equity. With this strong foundation, homeowners are well-positioned to consider thoughtful, long-term financial strategies to make the most of their investment.

Continued Need for Homeowner Education

Although home equity products are increasingly contributing to homeowners’ financial confidence, a significant portion of homeowners remain unfamiliar with these options. In fact, 30% of homeowners are unable to correctly identify a HELOC, and 34% cannot define a home equity loan. This underscores the importance of ongoing educational efforts in this area.

“Engaging with a mortgage professional allows homeowners to gain a more comprehensive understanding of how to utilize their home equity in pursuit of their financial objectives,” said Jon Giles, Head of Residential Lending Strategy & Support at TD Bank. “When homeowners are well informed about valuable options, they can make decisions that enhance their financial confidence and support long-term financial stability."

For additional information and guidance to support informed financial decisions, please refer to the Financial Education resources available on our TD website.

Survey Methodology

This report presents the findings of a CARAVAN® survey conducted by Big Village Insights among a sample of 2,012 U.S. homeowners who purchased a home within the past 10 years and acquired a mortgage when they bought their most recent home. The survey was conducted from August 18 to August 28, 2025.

About Big Village Insights

Big Village Insights is a global research and analytics business uncovering not just the ‘what’ but the ‘why’ behind customer behavior, supporting clients' insights needs with agile tools, CX research, branding, product innovation, data & analytics, and more. Big Village Insights is part of Bright Mountain Media. Find out more at https://big-village.com.

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. by assets, providing over 10 million customers with a full range of retail, small business and commercial banking products and services at approximately 1,100 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Auto Finance, a division of TD Bank, N.A., offers vehicle financing and dealer commercial services. TD Bank and its subsidiaries also offer customized private banking and wealth management services through TD Wealth^®. TD Bank is headquartered in Mount Laurel, N.J. To learn more, visit www.td.com/us. Find TD Bank on Facebook at www.facebook.com/TDBank and on Instagram at www.instagram.com/TDBank_US/.

TD Bank is a subsidiary of The Toronto-Dominion Bank, a top 10 North American bank. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD". To learn more, visit www.td.com/us.

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“Engaging with a mortgage professional allows homeowners to gain a more comprehensive understanding of how to utilize their home equity in pursuit of their financial objectives,” said Jon Giles, Head of Residential Lending Strategy & Support at TD Bank.