Survey on New Homeowners

(August 18, 2012 )

Survey commissioned by TD Canada Trust states first time home buyers do not regret paying record level prices, but instead regret not buying sooner, as to stop pouring money down the rental hole with nothing to show for it.

60% of the over a thousand respondents regret:
  1. Not putting down a bigger down payment
  2. Forgetting the associated costs of home ownership

"A bigger down payment reduces monthly payments, but it also gives owner options for a mortgage that is more flexible," explains Farhaneh Haque (director of mortgage advice with TD Canada Trust).  "For instance, with more than 20 per cent down payment, an owner can obtain a mortgage with a 30 year amortization period, rather than 25 years, which further reduces monthly payment."

It's not the sticker price that shocks first time buyers, it's the costs associated with the sticker price.  29% of those surveyed didn't budget for utilities.  12.5% forgot to account for inspection, legal fees, title insurance, land transfer taxes, and other one time fees when buying a new place.  Renters usually only pay one monthly amount the covers mostly everything.