- TD Canada Trust releases 2010 Repeat Home Buyers Report -
MONTREAL, Sept. 22 /CNW/ - When Quebecers buy a home, they are most likely to expect to stay there, however many Quebec homeowners become bored or restless of their home and want to upgrade to one that is bigger. Forty per cent of Quebecers surveyed in the TD Canada Trust Repeat Home Buyers Poll, which surveyed Canadians who have either bought or intend to buy a home that is not their first in the next two years - said that when they bought their previous home, they did not plan to move.
Quebecers are most likely in Canada to be planning to buy a bigger home (55% versus 49% nationally) and three-quarters intend to buy a fully-detached home. One in five say they grew bored or restless in their home, which played a factor in their decision to move. Having children was another top factor (16%).
Financing their new home
Quebecers are most likely to say they will sell their current home before buying another one rather than keeping it as a rental or investment property. However, 58% say the cost of their new home will be more than the value of their current home meaning they will need to take out a mortgage. In fact, Quebecers are most likely to say they will take out the maximum mortgage that they qualify for from their bank (30% versus 21% nationally).
Most homebuyers will try to save money on their mortgage. Eighty-two per cent will put down as much as they can afford for a down payment. A further two-thirds say they will save on interest payments by choosing accelerated payments (weekly or bi-weekly instead of monthly). Fifty-eight per cent will save on interest payments by choosing a shorter amortization period for their mortgage.
"It is encouraging that the majority of Canadians are taking steps to save money on their mortgage," says Christine Marchildon, Senior Vice President, Quebec Region, 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
Seventy-two per cent of Quebecers intend to use their current lender when they purchase a new home. The top reasons for switching among the remaining 28% are better rates (61%), better customer service (24%) and better mortgage terms (15%).
"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 Marchildon. The TD Home Buyers Report found that nearly six in ten Quebec buyers don't know or haven't thought about their options regarding mortgage profitability. Marchildon offers 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 only one-third of repeat buyers bring their current mortgage with them to their new home and just 10% use it as a selling feature of their prior home, allowing the new owner to assume their mortgage.
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 completed surveys, including 223 from Quebec, 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 year 2010 marks the 150th anniversary of TD Bank Financial Group in Quebec. TDBFG has built on a long tradition of quality client service and community involvement that dates back to the opening of the first branch in Quebec in 1860. Today, TDBFG's Quebec presence includes over 4,000 employees and 125 offices and points of service, as well as significant investments in community programs.
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.