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Boomers in Manitoba and Saskatchewan plan to head south for retirement
-TD Canada Trust releases Boomer Buyers Report -
TORONTO, Oct. 28 /CNW/ - Tired of the cold prairie winters? Boomers in Manitoba and Saskatchewan are the most likely in the country to be considering purchasing a retirement property south of the border. According to the TD Canada Trust Boomer Buyers Report, more than half of boomers in these provinces would consider buying a property in the United States (53% versus 36% nationally).
"It is essential to talk with a qualified mortgage advisor if you are considering a property purchase in a different country," says Farhaneh Haque, Regional Sales Manager, Mobile Mortgage Specialists, TD Canada Trust. "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 property in another country really is an affordable option."
Boomers in these provinces, are the most likely to already own a vacation home (15% versus 9% nationally). Another 11% of boomers in the region plan to buy a vacation property for their retirement.
Moving to the United States or otherwise, less than half (44%) of boomers in Manitoba and Saskatchewan will continue to live in their current home during retirement.
"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 Haque. "Moving to a smaller home can allow you to free up assets to put towards your retirement savings or enjoy in other ways."
Boomers in Manitoba and Saskatchewan are following the national trend and plan to downsize for their next home purchase. According to the TD Canada Trust Boomer Buyers Report, four-in-five Canadian boomers say their next move will be to a smaller home. Almost half say a smaller home will help them save money and 34% are moving somewhere smaller to enjoy more luxurious features.
Retiring with a mortgage?
Three-quarters of Canadian boomers say it is important that they pay off their mortgage before they retire. Less than half (45%) of boomer home owners in Manitoba and Saskatchewan are mortgage-free. Fifteen per cent have paid less than a quarter 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."
About the TD Canada Trust Boomer Buyers Report
Results for this study were collected through a custom online survey conducted by Environics Research Group. A total of 1,000 completed surveys, including 81 from Manitoba and Saskatchewan, 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.
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