Quebec Home Buyers Stay in their First Home More than a
MONTREAL (July 5, 2010)
– Quebecers look at the least amount of homes while
shopping for their first home, yet they are most likely in the
country to live in their first home for their entire lifetime. This
is according to the first TD Canada Trust Home Buyers Report which
surveyed Quebecers who have purchased their first home in the past
2 years or who intend to purchase a home in the next 2 years.
An average Quebec home buyer spends just over 8
months searching for their first home and views more than 10 homes
(versus 13 homes nationally). Once Quebecers buy their home, more
than a quarter never plan on selling (26% versus 16% nationally)
and another quarter plan on staying in their first home for ten
years or more.
For the first home, six-in-ten bought or intend to
buy a fully detached home and 81% want a new home, but can they
afford it? Eighty-six per cent of first time buyers in Quebec took
out or expect to take out a mortgage for their home with only 23%
of respondents planning to or having a conventional mortgage.
Quebecers are among the most likely in the country to make a down
payment of less than 20% (77% versus 70% nationally). Quebecers are
the least likely in the country to worry about being able to afford
their home if interest rates rise (47% versus 59% nationally).
“It’s only natural to want your
first home to be the home of your dreams, but it is important to be
realistic about what you can afford as a down payment and what that
will mean for both the type of home you buy and for your mortgage
payments over time,” says Christine Marchildon, Senior
Vice President, Quebec Region, TD Canada Trust. “I advise
first time home owners to consider a larger down payment because a
10% or greater down payment will make a big difference. It may mean
that you need to save longer before buying your first home, but it
will pay off in the end. Speak with a representative at your bank
about setting up an automatic savings plan to help you
Type of home and home
Eighty-one per cent of first time home buyers would
prefer a new home over an old home, but they are evenly split on
location. Fifty-four per cent would prefer a smaller home closer to
work and 46% would prefer a larger home with a longer commute.
While the majority prefer detached homes, 23% chose a condo, 17%
prefer town homes and 11% seek a semi-detached home.
Not surprisingly all Quebecers say price is the most important
factor when considering what kind of home to buy and where. The
second and third most popular were features of the home (95%) and
layout of the home (92%). Quebecers are the least likely in the
country to consider proximity to work as a reason for purchasing a
home (76% versus 86% nationally).
Quebec home buyers do their
Quebecers are making informed financial decisions
before buying their home. Top activities before buying a home
include learning about mortgage options (94%), getting pre-approved
(90%) and estimating utility costs (86%). Assuming property taxes
and moving costs are the top two costs that Quebec buyers felt
unprepared for (48% and 47% respectively).
Three-quarters of Quebecers report putting down as
much as they can afford for a down payment and 56% per cent say
they saved or plan on saving for more than two years for their home
purchase. In fact, Quebecers are most likely in the country to save
for 5 or more years for their home purchase (26% versus 20%
nationally). Nearly two-thirds say they expected or expect to pay
less than the asking price for their home. Only 8% expect to pay
more, while 28% expect to pay the asking price.
Nearly three-quarters of those surveyed have or plan to have a
fixed-rate mortgage. “Historically you are more likely to
save interest costs with a variable rate mortgage, so if they can
handle some volatility then I recommend buyers choose a variable
rate. If people are adverse to interest rate fluctuations then a
fixed-rate is best,” says Marchildon.
About the TD Canada Trust Home Buyers
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 between June 8-21, 2010 with 240 respondents from Quebec.
All participants either purchased their first home within the past
24 months, or intend to purchase their first home within the next
About TD Bank Financial Group
The year 2010 marks the 150th anniversary of TD
Bank Financial Group in Quebec. TDBFG has built on a long tradition
of quality client service and community involvement that dates back
to the opening of the first branch in Quebec in 1860. Today,
TDBFG’s Quebec presence includes over 4,000 employees and
125 offices and points of service, as well as significant
investments in community programs.
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 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. 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$574 billion in assets on April 30, 2010. The
Toronto-Dominion Bank trades under the symbol "TD"
on the Toronto and New York Stock Exchanges.
For further information:
TD Bank Financial Group
Morin Public Relations
514 289-8688, ext. 225