B.C. residents are experienced homebuyers and savvy about their mortgage
options

- TD Canada Trust releases 2010 Repeat Home Buyers Report -

VANCOUVER, Sept. 22 /CNW/ - For B.C. residents, it's home sweet home - for now. They have owned many homes and don't stay in any for very long. One in five has owned more than five homes according to the TD Canada Trust Repeat Home Buyers Report, which surveyed Canadians who have either purchased or intend to purchase a home that was not their first home. Further, half of B.C. homebuyers plan to stay in their next home for less than ten years - one quarter for less than six.

With all of their home buying experience, British Columbians have picked up some mortgage smarts. Compared to almost a third of Canadians, only 18% of British Columbian homebuyers don't realize they have options when it comes to the mortgage on the home they are selling.

Financing their new home

Three-quarters of B.C. homebuyers will sell their previous property before buying another one. Half say the proceeds from the sale of their home will be less than the value of their new home, meaning they will have to take out a mortgage.

Most homebuyers will try to save money on their mortgage. Eighty-two per cent will put down as much as they can afford for a down payment. Sixty-one per cent say they will save on interest payments by choosing accelerated payments (weekly or bi-weekly instead of monthly). Fifty-three per cent will save on interest payments by choosing a shorter amortization period for their mortgage. Still, almost one-third say they will take out the maximum mortgage that they qualified for from their bank.

"It is encouraging that the majority of Canadians are taking steps to save money on their mortgage," says Farhaneh Haque, Regional Sales Manager, Mobile Mortgage Specialists, TD Canada Trust. "I recommend that homebuyers buy the house that fits their budget, not just their lifestyle. After all, if you buy a house that is too big for you to afford, you could be giving up that lifestyle just to pay it off."

British Columbians know their mortgage options

Compared to almost a third of Canadians, only 18% of British Columbian homebuyers don't realize they have options for their current mortgage on the home they are selling. Despite knowing the options available to them, almost half say they haven't thought about what they will do with their mortgage when they sell their current home.

Haque offers these tips for buyers:

    
    -   Take your mortgage with you when you move. Many banks will let buyers
        take their mortgage with them, even if they need to increase their
        principal amount. This gets blended at the current market rate with
        the existing principal at its original interest rate.

    -   Use your mortgage as a selling feature. If the seller's mortgage
        interest rate is lower than current market rates, the purchasers may
        be able to take on the seller's mortgage when they move.
    

The TD Canada Trust Repeat Home Buyers Report showed that one-quarter of repeat buyers will bring their current mortgage with them to their new home and 11% will use it as a selling feature of their prior home, allowing the new owner to assume their mortgage.

Two-thirds of British Columbians say they will use their current mortgage lender for their new home. The other third that will switch lenders cite better interest rates (54%), better customer service (23%) and a better term (23%) as the reason for their switch.

Steps before selling

Half of those selling their home in B.C. say they will improve the resale value by renovating and 45% say they will redecorate to improve the value with 7% saying they will hire a professional stager.

About the TD Canada Trust Home Buyers Report:

Results for the TD Canada Trust Home Buyers Report were collected through a custom online survey conducted by Environics Research Group. A total of 1,000 completed surveys were collected, including 120 from British Columbia, from August 12 to 27, 2010. All participants 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 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, [email protected], [email protected]; Jeffrey Meerman, TD Bank Financial Group, 604-654-0324, [email protected]