A new survey revealed balance sheet vulnerabilities for some Canadian homeowners amid rising interest rates.

The survey released by BNN Bloomberg and RATESDOTCA showed that 27 percent of homeowners who participated in the survey were able to obtain a Home Equity Line of Credit (HELOC). Nearly 80 percent of those participants used it, with half saying they did so in the past two years.

Aside from the pressure of rising interest rates, HELOCs are complicated due to new mortgage lending guidelines announced by the Office of the Superintendent of Financial Institutions on Tuesday. By late 2023, borrowers will be required to pay principal and interest on loans exceeding 65 percent of the property's value.

Before these guidelines, HELOCs were an ideal way for homeowners to tap into their home equity during low interest rates in the past decade and high home prices, but survey results indicate that recent Bank of Canada rate hikes have likely changed the old way Canadians benefit from their home equity. With HELOCs relying on a variable interest rate, borrowers will be tied to higher payments.

Since HELOC lenders can demand full payment at any time, this can raise concerns for consumers who have not set aside extra funds to repay their HELOC amidst the pressure of rising interest rates.

According to the survey, 58 percent of respondents said they have an outstanding balance on their HELOC.

Although the majority said they borrowed less than $50,000, 10 percent said they borrowed more than $100,000. Balances of at least $50,000 were more common among Canadians aged 55 or older.

Among 1,507 Canadians surveyed, 65 percent said they own homes.

Editing: Dima Abu Khair