TD Bank: Knowing What to Expect Eases First-Time Home Buying Fears

Similar to the rollercoaster ride experienced by first-time parents, owning your first home can be an exhilarating yet unfamiliar experience. Knowing and preparing for what to expect on the home buying journey is often half the battle, and can help cut down on unexpected surprises.


A new survey by TD reveals that more than half (56 per cent) of Canadian first-time homebuyers are anxious and afraid that they’ll forget to take a crucial step as they gain their foothold on the property ladder. It’s no wonder that nearly one quarter of those polled (24 per cent) say that the home buying process is stressing them out, while one fifth (21 per cent) admit they are simply overwhelmed.

“For any significant life milestone, it’s challenging to know what to expect,” said Marc Kulak, Vice President, TD Bank Group. “For example, when you prepare to have kids, there are numerous steps and stages you go through to help prepare for their arrival. But when it comes to buying your first home, first-time buyers often enter the process with lots of unanswered questions. By seeking out advice in advance, you can avoid many of the common pitfalls, such as being hit with an unanticipated cost, experienced by first-time buyers.”

The survey findings also reveal that seven out of ten (71 per cent) first-time homebuyers are worrying about being hit with unanticipated costs during the homebuying process. At the same time, many of those surveyed aren’t taking the steps needed to prepare when purchasing a home. Just 39 per cent are taking steps to reduce their debt, with less than a third (28 per cent) working to improve their credit score.

“Our research found that more than one-third of first-time home buyers are saving for a down payment without planning the home buying process,” said Kulak. “Saving for a down payment is just one priority. Take time to consider the many costs and steps associated with homebuying from appraisal fees to mortgage default insurance. By anticipating expenses and adopting sound financial behaviours such as paying down your existing debts, you are setting yourself up for success.”

For first-time homebuyers looking to ease anxiety and stress during their homebuying journey, TD is offering the following tips and advice:

Manage any Existing Debt
First-time parents are often advised to get financially “ready” as they prepare to make the big decision to have kids. Similarly, you’ll want to feel financially “ready” when making a decision as important as buying a home. Before applying for a mortgage, it is a good idea to get your own ‘financial house’ in order. The TD Mortgage Affordability Calculator is a helpful tool it uses financial information provided by the potential buyer to help them understand how much home they may be able to afford after monthly expenses, debt payments and savings are accounted for.

Consider all Homebuying Costs
From diapers to daycare and everything in between, the costs associated with caring for a newborn can add up fast. Similarly, first-time homebuyers will quickly find out there are many expenses associated with buying a home. The survey found less than half first-time home buyers had planned for appraisal fees (49 per cent), mortgage default insurance (47 per cent) or closing adjustments (41 per cent). The best advice is to be aware of all the possible costs you could face so you don’t get hit with an unexpected expense.

Make Your Mortgage Work for You
As first-time parents find out soon enough, every baby is different; first time home-buyers also learn that not all mortgages are the same. The TD survey revealed that more than half (52 per cent) of first-time homebuyers are uncertain which type of mortgage would be the best fit for their needs and lifestyle. Meeting with a financial advisor can help determine the best mortgage type to help meet your personal financial situation.

Don’t Put Your Finances Under Pressure
Similar to parenting, the costs of owning a home continue for years to come. Once you close on your home purchase and pay all closing costs, don’t make the mistake of assuming your mortgage payments will be the only home-related expenses you’ll face. From property taxes to maintenance costs, there are lots of responsibilities and expenses that come with owning a home.

Protect Your Home
It’s well-known that new parents are typically very protective of their children, and often child-proof their home well before their child is on the move. Protecting your new home is also critical. Most first time home-buyers (70 per cent) are prepared for the costs of home insurance. Having the right insurance can help you feel at ease with your specific circumstances and help ensure there are no surprises down the road if crisis or catastrophe hits.

Latest News

Student distressed

25 Percent of American Students Lack Resources for Remote Learning; Is the Death Penalty Inherently Racist?; and More

Digital divide for rural students and students of color continues to worsen. A staggering 25% of all school-aged children in the U.S. live in households without reliable Wi-Fi and consistent broadband internet service or access to web-enabled devices such as a computer or tablet, according to data from the National…

Cox Business and Henderson, Nevada Launch Energy Efficient Smart Lighting Project

Originally published on Cox.com Cox2M IoT Business Line of Cox Communications will Pilot New Lighting Controls The City of Henderson and Cox Communications have successfully deployed the first stage of their smart community collaboration, starting with energy efficient lighting management and controls. Cox2M, the IoT business line of Cox Communications, and the…

Diverse hads unite

More Work Needed For Corporate Diversity Programs; Fourteen Disability Groups Unite to Promote Voting; and More

Corporate diversity efforts still have a long way to go, new report finds. In a report conducted by the research firm Clutch, nearly half of employees surveyed said their company isn’t committed to creating a more diverse workplace and hasn’t successfully improved diversity within the last year. Researchers with Clutch…

San Francisco's Golden Gate Bridge

San Francisco Declares War on Racism; People 55 and Older Face Historic Levels of Unemployment; and More.

San Francisco begins a citywide war on racism and discrimination. Known as the birthplace of the “Summer of Love” and the counterculture movement of the 1960s, San Francisco has long stood as a bastion of individuality and inclusion. And now the city is continuing that fight with the launch of…

portrait of Abraham Lincoln

Was Abraham Lincoln a Racist?

Former Vice President Joe Biden’s mention of Abraham Lincoln’s name during the third presidential debate on Thursday, Oct. 22, was one of the most memorable exchanges in the final presidential debate of 2020. It also caused Lincoln to become a trending topic over much of social media in the hours…