Quote:
Originally Posted by photon
Hurts the people that use a HELOC responsibly, and those that don't will just rack up consumer debt some other way.. higher interest credit cards...
Maybe that's the plan by the banks, get a better rate on consumer debt by having customers get a mastercard at 18% instead of a HELOC at prime+.
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I think it also might be a backhanded way for the gov't to crack down on people doing the Smith Maneouvre to save taxes. I have a heloc at 80% that I use for real estate investments, and I hope they allow a reasonable amount of time for rolling those over into mortgages, etc.