- 2011 TD Canada Trust Repeat Home Buyers Report finds many Ontarians make efforts to maximize resale value of their home -
TORONTO, Aug. 23, 2011 /CNW/ - Ontario home buyers are moving on up and many are also leaving the home they're selling in better condition than when they moved in. 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, Ontarians are the most likely to take steps to maximize the resale value of their home by redecorating (58% versus 48% nationally), renovating (50% versus 46% nationally) or hiring a home stager (12% versus 9%). For their efforts, Ontarians are most likely to expect to sell at or above asking price (84% versus 78% nationally).
"Home improvement projects can be a way to increase the resale value of your home. Or, help make those changes you always wanted for your home even if you're not planning to move," says Trevor Irvine, Mobile Mortgage Specialist, TD Canada Trust. "Many Ontarians have the option to use the equity they've already built in their homes to finance these upgrades and if you're thinking about renovating - either to improve resale value, or to improve your home for yourself, a Home Equity Line of Credit could make sense to help finance your project."
Ontarians are most likely in the country to have considered a Home Equity Line of Credit (56% versus 50% nationally) and they are most likely to say they would use a HELOC for renovations (50% versus 45% nationally).
Many Ontarians are moving sooner than planned
Seven-in-ten (71%) repeat home buyers in Ontario are moving to larger or more luxurious homes and many are doing so earlier than they originally planned. Sixty-five percent of Ontarians are moving earlier than they intended (41%) or had no intention of moving but now find themselves on the house-hunt again (24%). "Our research indicates that Canadians don't stay in one home too long," says Irvine. "However, before making the decision to move, it's important to explore all of your options. Sometimes it might be more affordable to renovate and make your current home work for you rather than moving - especially if there are features of your home that can be easily fixed or enhanced."
The top five features that Ontarians felt they compromised on when they purchased their previous home that they are not willing to budge on this time are layout of the home (34%), features of the home (29%), garage or sheltered parking (28%), price (28%) and number of bedrooms (26%).
Ontarians think it's a good time to buy - and to sell
This year, Ontarians were more likely to say that investment opportunities (24% versus 16% in 2010) and market conditions (23% versus 16% in 2010) played a factor in their decision to buy another home. A large majority (79%) plan to sell their current home. Among those who have purchased a second home and do not plan to sell their previous home, 42% will keep the first home as a rental property. More people than last year plan to stay in their current home and use their new home as a rental property than last year (37% versus 23% in 2010).
Ontarians are savvier sellers than last year
The TD Canada Trust Repeat Home Buyers Report showed that 59% of Ontarians have a mortgage on the home they are moving from and 71% will take out a mortgage on their new home.
In 2010, nearly three-in-ten Ontarians (27%) 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 8%. Ontarians are most likely to say that they will bring their current mortgage with them to their new home (45% versus 38% nationally). Twelve percent say they will use it as a selling feature. Although they say they are aware of the options, 35% of Ontarians haven't considered what they will do.
"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 Irvine.
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 275 in Ontario, 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.