TD survey shows that more than half of Canadians would consider home renos, but majority worry about costs
TORONTO, May 7, 2015 /CNW/ - With the spring homebuying season in full swing, real estate is a hot topic of conversation and many Canadians may be asking themselves: is now the right time to move?
However, a recent TD survey of existing homeowners and those planning to own a home reveals that renovation is also on the minds of many Canadians. In fact, 56 per cent of respondents have considered, or would consider, renovating their current home or buying a fixer-upper rather than buying a move-in-ready one.
"Many of our customers tell us they love their neighbourhood but their current home doesn't have enough space or it could use some upgrades," said Pat Giles, Associate Vice President,Real Estate Secured Lending at TD. "Situations like these motivate homeowners into making an important choice – do you move or do you renovate your current home? Given the cost and stress associated with moving, renovation is a popular choice among Canadians."
Of the TD survey respondents who would consider renovating, the top three reasons for choosing to go the renovation route are:
But renovation does not come worry free. When considering the choice to renovate, six in 10 (61 per cent) of all respondents say that cost is the biggest concern. When it comes to paying for renovations, 43 per cent of those who would consider renovating say they would use money from their savings account or Tax Free Savings Account (TFSA) while 40 per cent would use a home equity line of credit (HELOC). Giles says planning ahead and having a financial approach in place will help reduce stress.
"Whether you hire someone to do your renovation or you do-it-yourself, having financial flexibility is key to reducing the worries that often come with a home renovation," said Giles. "For example, the TD Home Equity FlexLine provides payment flexibility, convenient access to cash and a low-cost way to borrow against the existing equity in your home."
Before embarking on a home renovation project, take the time to seek advice and develop a well-rounded plan, say the experts.
"Home renovation projects, whether large or small, are often going to come with both surprises and challenges," said Jeremy MacPherson, renovation expert and judge of the W Network's new show Game of Homes. "But there are steps you can take to reduce the stress that can often accompany a renovation project."
He notes that doing research ahead of hiring a contractor can bring peace of mind with your hiring decision. Call for references, get several bids and do the due diligence on your preferred contractor's track record. When evaluating competing bids, asking for a breakdown of labour costs versus material costs is also helpful in deciding which contractor's estimate best fits your budget.
"Factoring in an extra 10 to 15 per cent on top of your anticipated costs can help keep you from running over-budget," says Giles. "Be prepared to make the trade-off decisions that inevitably come with renovations, and remember that at the end of the project you should love your home more than when you started."
For more information, tools and resources on home ownership, visit: www.tdcanadatrust.com/products-services/banking/mortgages/refinancer/refinancing-alternatives/using-your-home-equity.jsp
About the TD Bank Group Life in the 'To Renovate or Not to Renovate' Poll
TD Canada Trust commissioned Environics Research Group to conduct a custom survey of 6,149 Canadians aged 18 years and older. 4,775 Canadian homeowners and first-time intenders, 2,664 of which would consider renovating, are included in this poll. Responses were collected between January 20 and February 8, 2015.
About TD Canada Trust
TD Canada Trust offers personal and business banking to more than 11.5 million customers. We provide a wide range of products and services from chequing and savings accounts, to credit cards, mortgages and business banking, plus credit protection and credit travel medical insurance, as well as advice on managing everyday finances. TD Canada Trust makes banking comfortable with award-winning service and convenience through 24/7 mobile, internet, telephone and ATM banking, as well as at over 1,100 branches, with convenient hours to serve customers better. For more information, please visit: www.tdcanadatrust.com. TD Canada Trust is the Canadian retail bank of TD Bank Group, the sixth largest bank in North America.
SOURCE TD Bank Group
Image with caption: "Refresh, Renovate or Relocate? (CNW Group/TD Bank Group)". Image available at: http://photos.newswire.ca/images/download/20150507_C4652_PHOTO_EN_16335.jpg
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