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Atlantic Canadian boomers say there's no place like home for retirement
-TD Canada Trust releases Boomer Buyers Report-
TORONTO, Oct. 28 /CNW/ - The majority of Atlantic Canadian boomers plan to spend retirement in their current home. While many Canadian boomers are planning to downsize, according to the TD Canada Trust Boomer Buyers Report, those in Atlantic Canada are the most likely to say they plan to keep living in their current home during their retirement (60% versus 49% nationally).
Will Atlantic Canadians be retiring mortgage-free? Three-quarters of Canadians say it is very important that they pay off their mortgage fully before they retire. However, only 41% of Atlantic Canadian homeowners surveyed have. In fact, almost one quarter (22%) still need to pay off more than 50% of their mortgage.
Farhaneh Haque, Regional Sales Manager, Mobile Mortgage Specialists, TD Canada Trust, 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."
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. Atlantic Canadians who don't plan on staying in their current home are following the national trend to move to a smaller 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."
Real Estate Opportunities South of the border:
Nine per cent of Atlantic Canadians own a vacation property and another 6% plan to purchase one for retirement. Atlantic Canadians are the least likely in the country to consider buying property in the United States. Only one-in-five say opportunities created by the depressed real estate market have sparked their interest in American real estate (versus 24% nationally), and before the market turmoil, less than one per cent of Atlantic Canadians were considering buying property south of the border (versus 12% nationally).
"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 property in another country really is an affordable option."
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 Atlantic Canada, 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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