- TD Canada Trust releases 2010 Repeat Home Buyers Report -

CALGARY, Sept. 22 /CNW/ - One in five Alberta repeat homebuyers are going house hunting for homes they don't plan to live in. Compared to other Canadians, Albertans are twice as likely to be looking for a vacation home (13% vs. 5% nationally) and another 6% are looking to buy a rental property. This is 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.

"In Alberta, we've seen a buyers' market develop and many repeat buyers have been able to take advantage of opportunities because of the equity they've built in their current home," says Jessy Bilodeau, Calgary-based, Mobile Mortgage Specialist, TD Canada Trust. "Many Alberta homeowners have paid off their mortgage, giving them the freedom to take advantage of opportunities in the market."

Albertans are most likely in the country to own their current home without a mortgage (41% vs. 32%).

Financing their new home

Those who are selling their current home in Alberta are most likely to say that the proceeds from the sale of their house will be more than the value of their new home (51% versus 34% nationally), leaving extra funds for them to use elsewhere. Another third say the proceeds will be less than the value of their new home, meaning they will have to take out a mortgage.

Most will try to save money on their mortgage. Eighty-four per cent will put down as much as they can afford for a down payment. A further two-thirds say they will save on interest payments by choosing accelerated payments (weekly or bi-weekly instead of monthly). Fifty-nine per cent will save on interest payments by choosing a shorter amortization period for their mortgage. Only 15% 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."

Mortgages for repeat homebuyers

Three-quarters of Albertans intend to use their current lender when they purchase a new home. The top reasons for switching among the remaining 25% are better rates (53%), better customer service (41%) and better mortgage terms (29%).

"There are many options available to repeat home buyers and a mortgage expert can help you choose the right one to save money so you can own your new home faster," says Haque.

The TD Home Buyers Report found that nearly six in ten buyers in Alberta don't know that they have options or haven't thought about their options for their current mortgage. 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 only 37% of repeat buyers bring their current mortgage with them to their new home and just 7% use it as a selling feature of their prior home, allowing the new owner to assume their mortgage.

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 111 from Alberta, 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.