Moving on Up - Repeat Homebuyers in Manitoba and Saskatchewan want bigger, more expensive homes
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- TD Canada Trust releases 2010 Repeat Home Buyers Report -
TORONTO, Sept. 22 /CNW/ - Homebuyers in Manitoba and Saskatchewan are most likely in the country to want to buy a more expensive home - and they're willing to pay. People in these provinces are most likely to have paid over asking price and are the most likely to take out a mortgage for their next home, 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.
The report found that homebuyers in Manitoba and Saskatchewan have expensive taste compared to the rest of the country. Three-quarters want a fully detached home (versus 71% nationally) and 60% intend to buy a more expensive home (versus 51% nationally).
Financing their new home
Three-quarters of people in these provinces say they will sell their current property before buying a new one. They are least likely to have a mortgage on their current home, but most likely to say that the proceeds from the sale of their house will be less than the value of their new home, meaning they will need to take out a mortgage on their new home (64% versus 51% nationally). Despite this, they are least likely to say they will take out the maximum mortgage they qualify for from their bank (11% versus 21% nationally).
Most homebuyers will try to save money on their mortgage. Eighty-eight per cent will put down as much as they can afford for a down payment. Sixty-three per cent say they will save on interest payments by choosing accelerated payments (weekly or bi-weekly instead of monthly). Sixty-two 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 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
"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.
The TD Home Buyers Report found that half of buyers don't know that they have options or haven't thought about their mortgage options. Haque 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 36% of repeat buyers bring their current mortgage with them to their new home and only 10% use it as a selling feature of their prior home, allowing the new owner to assume their mortgage.
Two-thirds of repeat buyers intend to use their current lender when they purchase a new home. The top reasons for switching among the remaining 35% are better rates (53%), better customer service (41%) and better mortgage terms (24%).
Why buy another home?
The top factor that influences the decision to move is retirement (32%). Twenty-three per cent say they had always planned to move but were waiting to save enough money. Other factors include market conditions (21%), investment opportunities (15%) and being bored or restless with their current home (15%).
The top considerations for homebuyers in Manitoba and Saskatchewan are the layout of the home (99%), the size of the home (98%) and price (96%).
Steps before selling their current home
Hoping to improve the resale value of their home, people in Manitoba and Saskatchewan renovate (56%), redecorate (52%) and improve the curb appeal by landscaping (41%).
Fifty-two per cent of people in these provinces are cautious saying they wouldn't buy a new home until their current home was sold - but 48% say that if the perfect home came up for sale, they would put in an offer and hope that their house sells.
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 were collected, including 81 from Manitoba and Saskatchewan, 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.