For a more
upscale home, Canadian boomers plan to
downsize
- TD Canada Trust
Boomer Buyers Report shows 56% still have a mortgage
-
TORONTO (October 28, 2010)
- For their next move, Canadian boomers are looking to downsize to
smaller homes. According to the TD Canada Trust Boomer Buyers
Report, four-in-five Canadian boomers say their next move will be
to a smaller home, either to save money (46%) or to enjoy more
luxurious features (34%).
“Many boomers find that their needs and
priorities have changed since they moved into their current home.
If you find you have more room than you need, consider
‘right-sizing,’” says Farhaneh Haque,
Regional Sales Manager, Mobile Mortgage Specialists, TD Canada
Trust. “Moving to a smaller home can allow you to free up
assets to put towards your retirement savings or enjoy in other
ways.”
Retiring with a mortgage?
Three-quarters of boomers say it is important that
they pay off their mortgage before they retire, but less than half
(44%) have paid off their entire mortgage. Of those boomers with a
mortgage, one-third have paid off more than 60%, but one-quarter
have a long way to go, having paid off less than 25% of their
mortgage.
Haque offers this advice for boomers working to pay
off their mortgage: “Talk to an expert about your home
financing – you could pay off your mortgage faster with a
different payment schedule, such as increasing your mortgage
payment frequency from monthly to biweekly.”
Boomers prefer detached homes:
For their next home, the majority of boomers (61%)
plan to purchase a detached house. Although condos come in as
second choice at 24%, more than half say they are at least
considering a condo because they involve less maintenance (84%) and
offer better security (54%) and amenities such as a gym or pool
(47%). The top reasons that most boomers prefer houses over condos
are that they prefer to have a backyard and garden (61%) and
don’t want to pay condo fees (57%).
However, some boomers say they will stay put.
Forty-nine per cent will not move, either because they want to
avoid the hassle of moving (61%), because their house is already
the right size for them (43%) or they like having extra rooms for
guests to visit (28%).
Boomers heading South:
Nine per cent of boomers currently own a vacation
property and a further 12% plan to buy one for their
retirement.
More than a third of boomers are considering buying
a property south of the border. One quarter say opportunities
created by the depressed real estate market have sparked their
interest, while another 12% were already considering real estate
opportunities in the United States. The most important criteria for
buying a vacation property include location (99%), price (98%), low
maintenance (95%), and the ability to have friends/family visit
(92%).
“It is essential to talk with a qualified
mortgage advisor if you are considering a property purchase in a
different country,” says Haque. “While there
can certainly be opportunities, it is important to consider lending
rules and taxes. An expert can help walk you through the paperwork
and decide whether a property in another country really is an
affordable option.”
About the TD Canada Trust Boomer Buyers
Report
Results for the TD Canada Trust Boomer Buyers
Report were collected through a custom online survey conducted by
Environics Research Group. A total of 1,000 completed surveys were
collected between Sept. 30-Oct. 9, 2010. All participants were
screened to have been born between 1946-1964 (“Baby
Boomers”). This is the third report in a series on the
life stages of Canadian home buyers. It follows the first time home
buyers report and the repeat home buyers report.
About TD Bank Financial Group
The Toronto-Dominion Bank and its subsidiaries are
collectively known as TD Bank Financial Group (TDBFG or the Bank).
TDBFG is the sixth largest bank in North America by branches and
serves more than 18 million customers in four key businesses
operating in a number of locations in key financial centres around
the globe: Canadian Personal and Commercial Banking, including TD
Canada Trust and TD Insurance; Wealth Management, including TD
Waterhouse and an investment in TD Ameritrade; U.S. Personal and
Commercial Banking, including TD Bank, America's Most Convenient
Bank; and Wholesale Banking, including TD Securities. TDBFG also
ranks among the world's leading online financial services firms,
with more than 6 million online customers. TDBFG had $603 billion
in assets on July 31, 2010. The Toronto-Dominion Bank trades under
the symbol "TD" on the Toronto and New York Stock
Exchanges.
For further information:
Carolyn Abbass / Sinead Brown
Paradigm Public Relations
416-203-2223
cabbass@paradigmpr.ca /
sbrown@paradigmpr.ca
Tamar Nersesian
TD Bank Financial Group
416-944-7095
tamar.nersesian@td.com
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