Atlantic Canadians think they can afford a little luxury and are moving to bigger or better homes

- 2011 TD Canada Trust Repeat Home Buyers Report finds three-quarters move earlier than they originally intended -

TORONTO, Aug. 23, 2011 /CNW/ - Fifty-eight percent of repeat home buyers in Atlantic provinces are moving on to larger or more luxurious homes and many are moving earlier than they originally planned. What prompted the upgrade? According to the TD Canada Trust Repeat Home Buyers Report, which surveyed Canadians who recently bought or intend to buy a home that is not their first; the top reasons for Atlantic Canadians to buy another home are that they started making more money (18%) or are bored or restless with their current home (16%).

"Our research indicates that Canadians don't stay in one home too long," says Farhaneh Haque, Director, Mortgage Advice, TD Canada Trust. "Before making the decision to move, explore all your options and ensure that your new home will suit your changing needs and lifestyle. It might be more affordable to renovate and make your current home work for you."

Atlantic Canadians are the least likely in the country to think home buying will be an easier more stress-free process this time around (69% versus 75% nationally) because they know what to expect.

The top five features that Atlantic Canadians felt they compromised on when they purchased their previous home that they are not willing to budge on this time are a garage or sheltered parking (37%), features of the home (36%), price (33%) layout of the home (28%), a renovated kitchen and number of bathrooms (both 27%).

"If you are dissatisfied with something like the layout or features of your home, a renovation can be a convenient option to save the hassle and expense of moving. A Home Equity Line of Credit will allow you to use the equity you've built in your home to finance the renovation. Further, if you do ultimately decide to sell, the renovation could increase your resale value," says Haque.

Only a third (34%) of repeat buyers in Atlantic Canada have considered a Home Equity Line of Credit (HELOC). Of those, more say they would like to have it simply as a cushion (47%) than for the purposes of a renovation (45%). Thirty-one percent would use the line of credit to invest.

What is the plan for their current home when they buy another?

The large majority of Atlantic Canadians (80%) plan to sell their current home before buying another and 69% plan to sell at or above asking price.

Among those who have purchased a second home and do not plan to sell their previous home, 35% will keep the first home as a rental property, 18% will stay in their current home and purchase the new home as a rental property. Atlantic Canadians are most likely in the country to say the new home they buy will be a vacation home (41% versus 20% nationally).

"Buyers should keep in mind that if they are expecting to sell above asking price, it's likely they will need to also buy at above asking price," says Haque. "A home is, obviously, a very big purchase - especially if you will not be selling your previous home to put towards the cost. A mortgage expert at your bank can walk you through your financing options and show you strategies and products that may save you money and provide flexibility over the course of your mortgage."

Atlantic Canadians are savvier sellers than last year

The TD Canada Trust Repeat Home Buyers Report showed that 64% of Atlantic Canadians have a mortgage on the home they are moving from and 69% will take out a mortgage on their new home.

In 2010, nearly three in ten Atlantic Canadians (29%) who planned to sell their home didn't know they had options when it came to their mortgage. This year, that number decreased to only 11%. Nearly one third (31%) of sellers say they will bring their mortgage with them and 8% say they will use it as a selling feature. Although they say they are aware of the options, Atlantic Canadians are most likely to say they haven't considered what they will do (49% versus 39% nationally).

"It's just as important to consider your mortgage options as a seller as when you are buying. You may be overlooking your mortgage as an important selling feature of your home or you may be able to save money by keeping your low rate and bringing your mortgage terms with you. Talk to an expert to find out what option might work for you," says Haque.

About the 2011 TD Canada Trust Repeat Home Buyers Report

Results for this study were collected through a custom online survey conducted by Environics Research Group. A total of 1,025 completed surveys, including 129 in Atlantic Canada, were collected between June 16-28, 2011 of people who have 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 Canada Trust

TD Canada Trust offers personal and business banking to more than 11.5 million customers. We provide a wide range of products and services from chequing and savings accounts, to credit cards, mortgages and business banking, to credit protection and travel medical insurance, as well as advice on managing everyday finances. TD Canada Trust makes banking comfortable with award-winning service and convenience through 24/7 mobile, internet, telephone and ATM banking, as well as in over 1,100 branches - most open 8 'til late and many now open Sunday. For more information, please visit: www.tdcanadatrust.com. TD Canada Trust is the Canadian retail bank of TD Bank Group, the sixth largest bank in North America.