HELOC product offers several features to help Canadians pay back debt faster
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 possible."
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).
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