HELOC product offers several features to help Canadians pay back debt
TORONTO, Jan. 5, 2012 /CNW/ - ING DIRECT announced today the launch of
its Home Equity Line of Credit (HELOC), a product designed to help
Canadians borrow money affordably, along with the tools to pay down
their debt faster. The HELOC is offered as a companion to ING DIRECT's
unmortgage®, or as a standalone line of credit for those who have built
equity in their homes.
"Savings are the cornerstone of a healthy financial lifestyle, but we
acknowledge there are times in life when borrowing money might be
necessary. However, debt should not be a burden you're stuck with
forever, and you should always have a plan in place to pay it back,"
said Peter Aceto, President and CEO of ING DIRECT Canada. "ING DIRECT's
new HELOC is a smart, affordable way to borrow money, and it gives
Canadians the tools they need to pay off their debt as quickly as
In keeping with ING DIRECT's approach to help Canadians save money over
the long term, the HELOC has a number of features which encourage
clients to pay off debt easily so they can get back to saving:
Fixed Payment Plan: Clients will be encouraged to set up a schedule of regular, fixed
payments up front to pay off their HELOC quickly and not get trapped
into making only minimum payments.
Ability to decrease credit limit online: Another unique feature of ING DIRECT's HELOC, clients are able to go
online and lower their own credit limit as they pay down their debt so
they aren't tempted to spend additional money unnecessarily.
Online Access but no ATM card: Unlike other HELOCs, funds can only be accessed through electronic
funds transfer (EFT), and not by the simple swipe of an ATM card.
Clients can think twice before accessing their credit, which means it's
less likely to be used for non-essential purchases.
Competitive, low interest rate: Borrowing against the equity in a home provides clients with a lower
rate alternative to credit cards, unsecured lines of credit and other
loans. ING DIRECT's HELOC has one of the most competitive rates in the
market today, currently at ING Prime + 65 bps.
A recent national poll conducted by Vision Critical on behalf of ING
DIRECT found that entering 2012, the number one concern for Canadians
in terms of their personal finances is the amount of debt they have
(19%). One fifth of Canadians (22%) say their priority this year is to
pay off their credit cards and lines of credit.
"A HELOC is not meant for day-to-day purchases, and Canadians shouldn't
be using their homes like an ATM. But using a lower interest rate HELOC
to consolidate expensive debt like credit cards or other lines of
credit is a perfect example of how this tool is beneficial," said
Aceto. "At ING DIRECT, we think it's important for Canadians to get
into the habit of practicing safe credit. We want Canadians to view the
HELOC as a smart, affordable way to deal with debt and get back to
focusing on saving."
For more information, visit ingdirect.ca/unmortgage
About ING DIRECT
ING DIRECT is Canada's leading direct bank with over 1.7 million Clients
and more than $37.6 billion in total assets. ING DIRECT gives the power
of saving to all Canadians by offering high-value, simple products such
as high interest savings accounts with no fees or service charges, low
rates on mortgages and a no-fee daily chequing account that actually
pays interest. ING DIRECT has been operating in Canada since 1997 and
has paid more than $5 billion in interest to Clients. ING DIRECT is
open for banking 24 hours a day, 7 days a week, at ingdirect.ca, on mobile devices at m.ingdirect.ca or by calling 1-800 ING DIRECT (1-800-464-3743).
SOURCE ING DIRECT
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