The Globe and Mail reports in its Wednesday edition that for many young Canadians, home ownership is a dream. In a Globe special, Robert Gerlsbeck writes that without homes, they are shut out of one of the most powerful financial tools available: the home equity line of credit, or HELOC. It is a low-interest borrowing option that lets homeowners access tens or even hundreds of thousands of dollars on demand. Renters do not have that luxury. Without a home as collateral, they are left navigating the more expensive world of unsecured personal loans. Still, in 2024, the number of Gen Zers in Canada taking out personal loans rose 28.7 per cent over the previous year, after increasing 31 per cent year-over-year in 2023. Consumers need to understand that the interest rates will be a lot higher than a HELOC. National Bank says unsecured personal loan rates average from 8 to 12 per cent, though the bank stresses rates vary based on an individual's financial situation. By contrast, National Bank's HELOC variable rate was 5.95 per cent. Homeowners with HELOCs can often make interest-only payments. Personal loan payments, on the other hand, cover both interest and principal, which can substantially increase monthly expenses.