- 2011 TD Canada Trust First Time Homebuyers Report reveals trends for
B.C. buyers -
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TORONTO, June 15, 2011 /CNW/ - After years of paying rent, first time
homebuyers in B.C. say it's time they started collecting it. According
to the 2011 TD Canada Trust First Time Homebuyers Report, 56% of first
time homebuyers in B.C. are looking for a home with a rental unit.
Eighty-five percent think the unit will generate between $500 - $1,000
per month and seven-in-ten (67%) say the extra income will go towards
paying their mortgage.
"Taking in a tenant can be an effective way to supplement your income
and pay off your mortgage faster," says Barry Rathburn, Manager,
Residential Mortgages, TD Canada Trust. "If you have a rental unit,
I'd recommend exploring flexible mortgage options. These products
allow you to pay more towards your mortgage when you can afford to and
give you the peace of mind of knowing that if something changed
financially - for instance your tenant moved out during the same month
that your furnace broke down - you could miss payments with no
The survey also found B.C. buyers to be saving up the longest for their
first home and putting down the largest down payment. Nearly
six-in-ten say that they have been saving for their first home for
three years or more (57% versus 47% nationally) and they are twice as
likely to be putting down a down payment of more than 25% (17% versus
10% nationally). Not surprisingly, given B.C.'s infamously expensive
real estate, buyers in B.C. are most likely to need a mortgage to
finance their purchase (93% versus 87% nationally).
Many first time buyers flying solo on the house-hunt
In B.C., 47% of first time buyers plan to purchase their first home on
their own (rather than with a co-purchaser). Nationally, nearly
six-in-ten men (57%) will buy on their own, along with 33% of women.
"Buying a home is a very big purchase and it's great that so many
British Columbians feel financially equipped to take on the expense
independently," says Rathburn. "I recommend that people find a home
that they can comfortably afford and this is especially important for
people buying a home on their own. Ensure the mortgage you take on
allows room in your budget to set some money aside for the future,
because should your financial situation change, you are the only person
legally responsible for the mortgage."
While people buying independently don't have to compromise with anyone
about the features, location and type of home they're looking for,
first time buyers realize they may have to make concessions because the
perfect home may not exist - or at least not be in their price range.
Encouragingly, price is the factor British Columbians are least willing
to compromise on.
First time homebuyers are most likely to say they would not compromise
Number of bedrooms (44%)
Number of bathrooms (35%)
They are most willing to make concessions about:
Proximity to recreational activities (87%)
Features of the home (85%)
Layout of home (81%)
Compared to last year, homebuyers doing slightly less homework
Many first time homebuyers in B.C. are doing their homework to prepare
for the home buying process. British Columbians surveyed were most
likely to research mortgage options (87%), calculate closing costs
(79%), estimate the cost of heating and water bills and estimate annual
maintenance fees (both 76%).
Though a significant number of buyers are still taking steps to prepare
themselves, the 2011 TD Canada Trust First Time Homebuyers Report found
an overall trend that not as many buyers as last year were preparing
themselves; findings in B.C. were consistent with this trend.
Nationally, steepest declines were in terms of getting pre-approved for
a mortgage (76%, down from 91%), speaking to a mortgage lender before
shopping (72%, down from 84%) and arranging for a home inspection (67%,
down from 85%). First time buyers were also less likely this year to
learn about mortgage options (85%, down from 93%), estimate heating,
electricity and water bills (78%, down from 85%), and calculate closing
costs (77%, down from 88%) in 2011 versus 2010.
"From getting pre-approved for a mortgage to estimating closing costs
and hydro bills when you move in, there are many aspects of the home
buying process and homeownership that many first time buyers may not
even consider," says Rathburn. We'll help you understand the process
so that you know what to expect and what to do next."
There is additional information about the home buying process, including
online mortgage calculators that allow prospective buyers to calculate monthly mortgage payments
and compare repayment plans available at www.tdcanadatrust.com . When you know what you can afford, you can narrow your search and
shop with more confidence, knowing that the houses you view may fit
within your budget.
About the 2011 TD Canada Trust First Time Homebuyers Report
From April 29 to May 16, 2011 results were collected by a custom online
survey by Environics Research Group. Data was collected from 1,000
Canadians, including 131 from B.C. who had either bought their first
home in the past 24 months or intend to buy their first home in 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.
SOURCE TD Canada Trust
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Paradigm Public Relations
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TD Bank Group