Most Albertans expect to pay less than asking price for home: survey

Jul 5, 2010, Most Albertans expect to pay less than asking price for home: survey

First-time homebuyers in Alberta, more than in any other Canadian province, are expecting to pay less than the asking price for their home.

The first TD Canada Trust Home Buyers Report, released today, says 71 per cent of those surveyed in the province expect to pay less compared with 65 per cent nationally. Also, the report says 26 per cent of Albertans expect to pay the asking price and only three per cent expect to pay more than the asking price.

The report surveyed Canadians who have purchased their first home in the past two years or who intend to purchase a home in the next two years.

More than in any other province, Albertans also report putting down as much as they can afford for a down payment (95 per cent versus 88 per cent nationally). Sixty-five per cent say they saved or plan on saving for two years or less for their home purchase. Despite the majority putting down as much as they can afford, only 25 per cent plan to have more than a 20 per cent down payment. Two-thirds (65 per cent) are worried about being able to afford their home if interest rates rise.

“It’s only natural to want your first home to be the home of your dreams, but it is important to be realistic about what you can afford as a down payment and what that will mean for both the type of home you buy and for your mortgage payments over time,” said Farhaneh Haque, Regional Sales Manager, Mobile Mortgage Specialists, TD Canada Trust, in a news release.

Seventy-three per cent of those surveyed in Alberta have or plan to have a fixed-rate mortgage.

According to the report, 59 per cent of Albertans prefer fully-detached homes, followed by condominiums (17 per cent) and semi-detached homes (14 per cent).

Results for the TD Canada Trust Home Buyers Report were collected through a custom online survey conducted by Environics Research Group. A total of 1,000 completed surveys were collected between June 8-21, including 100 from Alberta. All participants either purchased their first home within the past 24 months, or intend to purchase their first home within the next 24 months.

By Mario Toneguzzi, Calgary Herald