Savvy advice for first time
home buyers: TD Canada Trustreveals
what women want to know
TORONTO, March 16, 2010
– What are my mortgage options? How much should I budget
annually for home expenses? These are examples of what women home
owners wish they had known more about prior to buying a home,
according to the third annual TD Canada
TrustWomen and Home Ownership Poll.
Chris Wisniewski, Group Product Manager, Real
Estate Secured Lending, TD Canada
Trustoffers advice for women who are considering entering
the housing market this spring.
1. Research your mortgage
options
Twenty-five per cent of women home buyers surveyed in the TD Canada TrustWomen and Home Ownership Poll
wish that they had learned more about their mortgage options.
Wisniewski recommends that women allow enough time to review their
mortgage options carefully with a mortgage specialist.
“Whether you choose a variable rate or a
long-term fixed interest rate mortgage will depend on your comfort
with interest rate fluctuation and your ability to carry a higher
mortgage payment if interest rates rise,” says
Wisniewski. “As anticipation about rising interest rates
grows, more women may be interested in exploring longer term fixed
interest rate mortgages. Either way, it’s important to
consider all options early because once you put in an offer, things
will move very quickly.”
Online mortgage tools, such as TD Canada Trust’sMy Mortgage
Selector are a great starting place and can help potential
homebuyers narrow down the type and length of mortgage that might
suit their needs (http://calc.tdcanadatrust.com/MAT/Input).
2. Consider a larger down
payment
Although, only 10% of women wish they had known more information
about a down payment, there are important factors involved when
considering how much of a down payment to make.
“I recommend that people consider a down
payment greater than 10% ? it will make a big difference to the
amount you’ll end up paying over time. Think of it as
short-term pain for long-term gain,” says Wisniewski.
“I also recommend choosing a shorter amortization period.
Instead of the standard 25 or 35 year period, if you are able to,
consider selecting a shorter amortization period at the beginning
of your mortgage and you will dramatically reduce the amount of
interest you pay over time. On a $200,000 mortgage, switching from
a 35 year amortization period to a 25 year period could save you
$170 per month and could take 10 years off your
mortgage.”
3. Plan ahead for your closing
costs
Thirty-six per cent of women say they wish they’d asked
more questions about the fees and costs related to buying a
property and getting a mortgage. Wisniewski says that home buyers
should estimate their closing costs to be the equivalent of 1.5% ?
4% of the cost of their home. Closing costs usually include
legal/notary fees and disbursements, property land transfer taxes,
as well as adjustments for prepaid property taxes or condominium
common expenses (if applicable).
4. Estimate your annual home
expenses
Thirty per cent of women home buyers wish they had known in advance
the size of the annual expense of maintaining a property. From
parking permits and electrical bills, to property taxes and home
insurance, it is helpful to accurately estimate these costs prior
to purchasing a home. Wisniewski recommends making a budget and
planning monthly housing expenses to be less than a third of your
monthly household income (including mortgage payments, taxes,
heating costs, etc.).
5. Book a home inspection
Forty-three per cent of women felt the biggest headache they faced
in home ownership was the cost of maintenance and repairs. A report
from a qualified home inspector can provide a great deal of comfort
when buying a home and help to avoid purchasing a property that
will require major repairs in the short- term. Home inspectors
often provide a written report about your home that will allow you
to plan when certain items need to be cleaned, replaced or
checked.
For more information about mortgages and home
equity lines of credit, talk to a TD Canada
TrustMobile Mortgage Specialist, visit a branch or go to www.tdcanadatrust.com/mortgages
or call 1.800.722.3098.
About the TD Canada
TrustWomen and Home Ownership Poll
The TD Canada TrustWomen and Home
Ownership Poll surveyed women 18 years of age and older from across
the country, to explore home ownership behaviour among women. The
survey was conducted by Angus Reid Strategies with English and
French speaking Canadians using the Angus Reid Forum. The sample
size includes 1,003 women who have purchased a home
independently.
About TD Bank Financial
Group
The Toronto-Dominion Bank and its subsidiaries are collectively
known as TD Bank Financial Group. TD Bank Financial Group 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 Trustand TD
Insurance; Wealth Management, including TD Waterhouseand 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. TD Bank Financial Group also ranks among the world's
leading online financial services firms, with more than 6 million
online customers. TD Bank Financial Group had CDN$567 billion in
assets on January 31, 2010. The Toronto-Dominion Bank trades under
the symbol "TD" on the Toronto and New York Stock
Exchanges.
For further information:
Carolyn Abbass / Anne Locke
Paradigm Public Relations
416-203-2223
cabbass@paradigmpr.ca /
alocke@paradigmpr.ca
Tashlin Hirani
TD Bank Financial Group
416-982-3375
Tashlin.hirani@td.com
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