Two thirds of future first time home owners* would consider paying more than the asking price for a home based on its location - BMO survey
TORONTO, April 20 /CNW/ - A recent BMO Bank of Montreal survey revealed that among current** and future first-time home owners, location is the main reason they would consider offering more than the asking price for a home. The survey also highlighted notable differences of opinion between men and women when it comes to home buying.
The survey found that:
- 70 per cent of current home owners would consider offering more for a
home based on its location
- 63 per cent of future first-time home owners would consider offering
more for a home based on its location.
- Future first-time home owners who are men are more likely (70 per
cent) than their female counterparts (57 per cent) to consider
offering more for a home based on its location.
"Especially in today's heated market, it's easy to get caught up in the emotions of a home purchase," said Jane Yuen, Senior Manager of Mortgages, BMO Bank of Montreal. "It's hard to walk away from a home you believe is 'the one' but homebuyers need to avoid getting caught in a bidding war that pushes their mortgage payments outside their comfort zone. In short, you need to know your limit and stay within it."
He Said, She Said
Among future first time home owners the study found some notable gender differences:
- Men are more likely than women to agree that talk of rising interest
rates has influenced their decision to enter the housing market (39
per cent vs. 26 per cent).
- Twice the number of men compared to women report that they have been
caught up in a bidding war (16 per cent vs. 8 per cent)
- Females are more likely than their male counterparts to say they are
being overwhelmed by the choices/decisions involved in the home
buying process (44 per cent vs. 28 per cent)
"BMO advises Canadians to stress-test their financial budget now based on a higher interest rate to ensure they are adequately prepared now that rates are going up," said Yuen. "By locking in with BMO's 4.20 per cent five-year fixed, maximum 25 year amortization mortgage, you will save thousands of dollars in interest and be mortgage free a decade sooner."
By getting pre-approved, customers can reduce their stress - knowing that they have up to 90 days to search for their perfect home in the perfect location while taking advantage of this great rate that won't be around forever.
Talk to a BMO Mortgage Specialist about getting pre-approved. Benefits include:
- Guaranteed financing which will be helpful when you make an offer on
- Knowing how much you can borrow, and what your monthly payments will
- Guaranteed rate during your 90-day pre-approval period.
"While there are many ways of getting a mortgage, the key is to make sure you're getting the right advice. It starts by talking to your banker and understanding how your mortgage fits into your overall financial goals," added Yuen.
The Harris/Decima online poll was conducted from February 16th to 22nd, 2010 and is based on a sample of 1,000 Canadians between the ages of 25-45 years, who are either current home owners (who currently have a mortgage on their home and needed one when they purchased their home) or are planning on purchasing their first home in the next 12 months, and at least share in their household's financial decisions.
* For the purpose of this research, "future first time home owners"
are Canadians, between the ages of 25-45 years who are planning the
purchase of their first home in the next months and at least share in
their household's financial decisions.
** For the purpose of this research, "current home owners" are
Canadians, between the ages of 25-45 years who currently own their
residence and currently have a mortgage on their home and needed one when
they purchased their home and at least share in their household's
SOURCE BMO BANK OF MONTREAL
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