- TD Canada Trust releases 2010 Repeat Home Buyers Report -
TORONTO, Sept. 22 /CNW/ - After trying out quite a few houses, Atlantic Canadians are ready to find a place to stay. According to the TD Canada Trust Repeat Home Buyers Report, which surveyed Canadians who have either purchased or intend to purchase a home that was not their first home, almost one third of Atlantic Canadians have owned more than five homes. However, 44% say after purchasing their next home, they don't plan to move again (versus 31% nationally).
Atlantic Canadians are split on whether their next home will be larger or smaller (47% versus 53%) and more expensive or less expensive (45% versus 55%), but there is consensus on what type of house to buy. Four in five Atlantic Canadians intend to buy a fully-detached home, making them most likely in Canada to be looking for that option.
Financing their new home
Nine-in-ten Atlantic Canadians will sell their current home before buying another one, but half say proceeds from the sale will be less than the value of their next home, requiring them to take out a mortgage.
Most homebuyers will try to save money on their mortgage. Three-quarters put down as much as they can afford for a down payment. Sixty-eight per cent say they will save on interest payments by choosing accelerated payments (weekly or bi-weekly instead of monthly). A further two-thirds will save on interest payments by choosing a shorter amortization period for their mortgage. Still, 14% say they will take out the maximum mortgage that they qualified for from their bank.
"It is encouraging that the majority of Canadians are taking steps to save money on their mortgage," says Farhaneh Haque, Regional Sales Manager, Mobile Mortgage Specialists, TD Canada Trust. "I recommend that homebuyers buy the house that fits their budget, not just their lifestyle. After all, if you buy a house that is too big for you to afford, you could be giving up that lifestyle just to pay it off."
Mortgages for repeat homebuyers
Three-quarters of Atlantic Canadian repeat buyers have a mortgage on their current home; but many don't realize they have options for their mortgage when it comes to selling their home. In fact, almost two-thirds don't realize they have options or haven't thought about their options.
"There are many options available to repeat home buyers and a mortgage expert can help you choose the right one to save money so you can own your new home faster," says Haque, offering these tips for buyers:
<< - Take your mortgage with you when you move. Many banks will let buyers take their mortgage with them, even if they need to increase their principal amount. This gets blended at the current market rate with the existing principal at its original interest rate. - Use your mortgage as a selling feature. If the seller's mortgage interest rate is lower than current market rates, the purchasers may be able to take on the seller's mortgage when they move. >>The TD Canada Trust Repeat Home Buyers Report showed that less than one-third of Atlantic Canadian repeat buyers bring their current mortgage with them to their new home and only 6% use it as a selling feature of their prior home, allowing the new owner to assume their mortgage.
Why buy another home?
The top factor that influences the decision to move is retirement (32%). Other factors include investment opportunities (16%), children moving out (12%) and problems with the current home (12%).
The top considerations for Atlantic Canadians' next home are the layout of the home (97%), the size of the home (97%) and price (95%). Atlantic Canadians are most likely to say they are planning to buy a home that is closer to family (32% versus 20% nationally).
Selling their current home
Atlantic Canadians are the most cautious in the country with two-thirds saying they would not buy a new house until their previous one was sold (versus 55%) nationally. The other third said they would put in an offer if the perfect home came up for sale and hope that their house sells.
Those selling hope to improve the resale value of their home by renovating (51%) or redecorating (47%) or landscaping to improve curb appeal (37%).
About the TD Canada Trust Home Buyers Report:
Results for the TD Canada Trust Home Buyers Report were collected through a custom online survey conducted by Environics Research Group. A total of 1,000, including 77 Atlantic Canadians, completed surveys were collected from August 12 to 27, 2010. All participants either purchased a home that was not their first home within the past 24 months, or intend to purchase a home that is not their first home within the next 24 months.
About TD Bank Financial Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Financial Group (TDBFG or the Bank). TDBFG is the sixth largest bank in North America by branches and serves more than 18 million customers in four key businesses operating in a number of locations in key financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Insurance; Wealth Management, including TD Waterhouse and an investment in TD Ameritrade; U.S. Personal and Commercial Banking, including TD Bank, America's Most Convenient Bank; and Wholesale Banking, including TD Securities. TDBFG also ranks among the world's leading online financial services firms, with more than 6 million online customers. TDBFG had $603 billion in assets on July 31, 2010. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.