More than two thirds of repeat home buyers polled in a survey by TD Canada Trust indicate that their current home won’t be their last. In fact, one in five repeat buyers surveyed say that they have owned more than five homes.
Retirement is the leading influencer in the decision to change homes, according to the survey. Slightly more than half of respondents indicate that the proceeds from their current home will not be enough to cover the cost of their next home. This means that they will need to take out mortgages.
It appears that home buyers are quite loyal to their lenders, with 72 percent indicating that they will stick with their current lender when they buy their next home. However, this leaves almost thirty percent who aren’t necessarily decided on where they will seek their next financing package.
The top three reasons why home buyers leave their lenders?
1. Better rates
2. Better customer service
3. Better mortgage terms
The TD Canada Trust survey suggests that 60% of repeat home buyers aren’t aware of their mortgage options. The opportunity exists for mortgage lenders to educate home buyers in local markets about the rate and financing options available to them.