CHERRY HILL, N.J., July 26, 2016 /PRNewswire/ -- New research from
TD Bank® reveals that millennials are more conservative with their
money than their youth would suggest. In fact, nearly two-thirds
are saving cash in order to buy their first home.
Nearly three-quarters of millennials (74 percent) say that
saving for a down payment still represents the most significant
hurdle to achieving the American dream, according to TD Bank's
second annual First-Time Home Buyer Pulse, which polled more than
1,000 Americans looking to purchase a first home within the next
five years.
"It's encouraging to see millennials thoughtfully prepare to
enter the housing market," said Scott
Haymore, Head of Pricing and Secondary Markets at TD
Bank. "With today's affordability programs, owning a home
doesn't have to be a dream, it can be a reality."
Millennials have their Home Buying Priorities
Straight
- The top three priorities for millennials before purchasing a
home include saving for a down payment, paying off debt and having
a steady job
- One-fifth of millennials (19 percent) plan to supplement their
savings for a home with financial assistance from friends and
family, and 65 percent plan to have a spouse or partner as a
co-signer
- Millennials want to pay off their mortgages quickly, with
one-third (33 percent) planning to pay off their loan over a
15-year period
- Move-in ready homes continue to be the most popular choice for
busy millennial home buyers (78 percent)
- The top three features millennials seek in a home include
attractive design, a nice backyard or pool and proximity to schools
or childcare
Low Mortgages Rates Triumph over Monthly Budgets
- Among all respondents polled, 77 percent cited mortgage rates
as the most important factor when purchasing a home
- Seventeen percent of first-time buyers have not set aside money
for unexpected repairs and costs, which is probably why nearly half
(44 percent) of millennials incurred up to $5,000 in unexpected costs during the mortgage
process (according to TD's recent Mortgage Service Index
Survey).
"The costs of running a household can be a shock to new home
owners," Haymore said. "Monthly expenses for utilities, homeowner's
association fees, cable and internet, can add up quickly. Factoring
these in at the beginning of the mortgage process can help
borrowers assess their overall budget and determine a realistic
monthly mortgage payment."
Clearing the Down Payment Hurdle
- Sixty-five percent of all consumers indicated that saving for a
down payment is delaying their first home purchase
- More Americans (one-third) are putting less than 20 percent
down on a home; the percent was even higher among millennials (35
percent)
- Thirty-seven percent of first-time buyers will take advantage
of mortgage affordability programs
"For many consumers, a 20 percent down payment is a major
barrier to homeownership," Haymore said. "It's often difficult to
save this much cash, especially for young adults saddled with
substantial student loan debt. First-time buyers are shopping for
low-down payment mortgage programs, which allow buyers to put as
little as 3 percent down."
Additional highlights from TD Bank's second annual First-Time
Homebuyer Pulse are available at
https://mediaroom.tdbank.com/homebuyerpulse2016.
Survey Methodology
This study was conducted from
June 21 – June
26, 2016 among a nationally representative group of
consumers who are not currently homeowners and are considering
purchasing a home in the next five years. The sample size of 1,002
has a margin of error of +/- 3.1 percent. Data has been weighted by
age and gender to reflect the populations. The survey was hosted by
research company MARU/VCR&C.
About MARU
MARU/VCR&C, formerly the Research
& Consulting division of Vision Critical, is a professional
services firm dedicated to improving its client's business
outcomes. We deliver our services through teams of sector-specific
research consultants that have technology in their DNA,
specializing in the use of Insight Community and Voice of Market
technology. Our research drives decision making across all aspects
of customer experience, including innovation, product, branding,
commercialization and communications.
About TD Bank, America's Most Convenient Bank®
TD
Bank, America's Most Convenient Bank, is one of the 10 largest
banks in the U.S., providing more than 8 million customers with a
full range of retail, small business and commercial banking
products and services at more than 1,200 convenient locations
throughout the Northeast, MidAtlantic, Metro D.C., the Carolinas
and Florida. In addition, TD Bank
and its subsidiaries offer customized private banking and wealth
management services through TD Wealth®, and vehicle financing and
dealer commercial services through TD Auto Finance. TD Bank is
headquartered in Cherry Hill, N.J.
To learn more, visit www.tdbank.com. Find TD Bank on Facebook at
www.facebook.com/TDBank and on Twitter at
www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD". To learn more, visit
www.td.com.
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SOURCE TD Bank