- TD Canada Trust finds not all condo buyers understand the financial
obligations of condo ownership, provides advice for making
comprehensive budgets -
TORONTO, Nov. 29, 2012 /CNW/ - Do condo owners know that their monthly
condo fees can increase at any time, and are they prepared for that
possibility? Many are not. New research from TD Canada Trust, conducted
by surveying condo buyers in Toronto, Montreal, Calgary and Vancouver,
found that 68% of buyers didn't realize condo fees may increase at any
time and more than one-third (38%) say they don't have confidence that
they could afford an increase.
"Purchasing a condo may help you build equity, but the financial
commitment of owning a condo may be larger and more complex than many
buyers may realize," says Farhaneh Haque, Director of Mortgage Advice,
TD Canada Trust. "It's important to do your research before you hit the
open houses to understand the true costs of condo ownership."
From burst pipes to leaky roofs, just like in houses maintenance and
other costs can crop up unexpectedly, so Farhaneh recommends condo
buyers create a cushion in their budget for unexpected expenses and
start to build an emergency fund to cover possible special levies
should they arise.
"Keeping a pulse on the health of your condominium's finances, such as
its reserve fund, can help you to create a realistic annual budget that
anticipates condo fee increases and special assessments," she says.
Is it really better to own a condo than to rent?
Owning a condo may help you build assets for your future, but Haque says
there can also be long-term benefits to waiting and saving a larger
down payment. A larger down payment can mean you pay less interest over
the life of your mortgage, and if it's more than 20% of the purchase
price you won't have to purchase high ratio mortgage insurance.
"When comparing owning to renting, you have to weigh all the costs
including the purchase price of your condo, the size of your down
payment, condo fees, property taxes, immediate repairs or renovations,
interest rates and insurance, and compare these with how much you are
currently spending on rent. Of course, you also have to place a value
on the enjoyment and satisfaction that you will derive from owning your
own home," says Haque.
"Speak to a mortgage specialist who can help you crunch the numbers and
walk you through the different mortgage options available so you can
make an informed decision on whether you're ready to buy a condo."
About the 2012 TD Canada Trust Condo Education Survey
TD Bank Group commissioned Environics Research Group (www.environics.ca) to conduct an online custom survey of 609 residents of Montreal,
Toronto, Calgary and Vancouver who currently live in a condo, recently
purchased a condo, or are considering purchasing a condo. Responses
were collected between October 20 and October 25, 2012.
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, with convenient hours to serve customers better. 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
For further information:
Steve Presant / Liz Christiansen
Paradigm Public Relations
416-413-5194 / 416-413-5188
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