THIS
SUMMER ONE IN FOUR FIRST-TIME HOME OWNERS WILL BE CAUGHT OFF GUARD BY
EARLY COSTS, SURVEY FINDS
The
dog days of summer are not stopping thousands of Canadians from pulling up
stakes and moving this year. According to a survey conducted by Ipsos
Reid
for title insurer First Canadian Title, more than 600,000 Canadians*
will
have a moving day by the end of August in 2007, and one in four
first-time
homeowners will be unprepared for the costs and surprises that
come
with their purchase.
The
Canadian Real Estate Association counts the number of homes selling or
trading hands across Canada between January and May of this year at
233,156.
The
volume of home sales represents an increase of eight per cent from the
same time last year, 19 per cent from five years ago, and 72 per cent from
11 years ago.
"Despite
the joys associated with owning a home, people are often dismayed at some
of the surprise costs they encounter, particularly during their first year
of homeownership," said Susan Leslie, Vice President, Claims,
Underwriting and Legal, First Canadian Title. "These can range from
something as simple as changing the locks to unanticipated closing costs
or having to deal with something more serious like a property encroachment
issue."
Unexpected
first-year costs can range from small items such as a new garden hose or a
lawn mower, to more expensive items and repairs such as window coverings
or a leaky foundation. Serious issues like property encroachments, unpaid
liens, defects in title, or costs arising from pre-existing building code
violations can be offset with the purchase of title insurance.
Despite
the number of Canadians on the move, the survey found that as many as 26
per cent of home owners say they were totally or somewhat unprepared for
the costs and expenses that come with the first year in their new homes.
A
much higher number - 43 per cent - rated themselves as very or somewhat
unknowledgeable of closing costs such as mortgage loan insurance, legal
fees and land registration fees. The survey found that among Canadians,
Quebeckers claim to be the most knowledgeable, with 66 per cent stating
they were well aware of up-front closing costs before they made an offer
on their first home.
The
Ipsos Reid survey, conducted exclusively for First Canadian Title in
June,
also asked Canadian homeowners about the level of stress they
experienced
around moving day. The findings revealed that 1 in 5 - or 21 per cent -
described the experience of moving as very or quite stressful, and about
65 per cent who described their move as very stressful were either totally
or somewhat unprepared for the costs and expenses that come with the first
year in their new homes (66 per cent), or were very or somewhat
knowledgeable about up-front closing costs before they made an offer on
their first home.
Saskatchewanians
and Manitobans experienced being very or somewhat stressed around the time
of their moves at 29 per cent.
"There
are a lot of emotional issues we encounter when moving, from fear of not
being prepared to stress about the financial responsibilities that lie
ahead.
After all, our home is the most valuable purchase most of us will
ever
make," said Leslie. "The best solution for stress is doing your
homework
- from budgeting and planning to ensuring that your property and title are
properly protected."
IPSOS
REID / FIRST CANADIAN TITLE SURVEY HIGHLIGHTS
Percentage
of Canadians claiming to be somewhat or completely unprepared for the
costs and expenditures they had to endure during the first year in their
first home (including such items as a new lawnmower, landscaping, window
coverings or decorating costs):
-
National: 26 per cent
-
Alberta: 29 per cent
-
Atlantic provinces: 30 per cent
-
BC: 30 per cent
-
Ontario: 26 per cent
-
Quebec: 18 per cent
-
Sask. and Manitoba: 26 per cent
Percentage
of Canadians rating themselves as very or somewhat
unknowledgeable
of up-front closing costs before they made an offer on their first home
(such as mortgage loan insurance, legal fees, title insurance, and land
transfer taxes):
-
National: 43 per cent
-
Alberta: 44 per cent
-
Atlantic provinces: 53 per cent
-
BC: 49 per cent
-
Ontario: 43 per cent
-
Quebec: 34 per cent
-
Sask. and Manitoba: 39 per cent
Percentage
of Canadians rating their stress around the time of their move to their
first home as "very" or "quite" stressful:
-
National: 21 per cent
-
Alberta: 17 per cent
-
Atlantic provinces: 24 per cent
-
BC: 17 per cent
-
Ontario: 23 per cent
-
Quebec: 20 per cent
-
Sask. and Manitoba: 29 per cent
*
Based on Statistics Canada census data estimating the average occupancy
per household at 2.6 people.
-
30 -
For
more information please contact:
Alex
Mangiola
Pilot
PMR
416-462-0199
Ext 21
