What do women want?
When the question relates to real estate, the answer is threefold: security, a backyard, and a place to call their own.
Those are the findings of the
TD Canada Trust Women and Home Ownership Poll, now in its second year.
"The biggest reason women want to buy homes on their own is financial security. They also want to have a place of their own. Interestingly enough they want a yard but they don't want yard maintenance," notes Joan Dal Bianco, Vice President of Real Estate Secured Lending for TD Canada Trust.
Forty-three per cent of the 1,000 women polled said financial security was their number one reason for buying, followed by having a backyard or garden (35 per cent) and having a quiet, private space to themselves (34 per cent).
As for what impacts a single gal's decision to buy -- cost, neighbourhood and location, and safety. Being close to work wasn't as much of a factor, nor was proximity to family.
Women planning to get into the market this year couldn't have hit it any better, timing-wise, Dal Bianco explains.
"In terms of cost or affordability, this is probably the best affordability we've ever seen," she remarks.
"House prices are falling so we're avoiding the multiple offers on a single home, particularly in the greater Toronto, greater Vancouver areas. Now we're seeing that that's gone away, housing prices are coming down, and rates have never been lower."
But it's essential for women to do their homework before they even think about talking to a real estate agent. Important considerations include affordability, existing debts and liabilities, and hidden costs, for example: closing expenses, lawyer's fees, and condominium maintenance fees.
"I think we always give all first-time homebuyers, and women in particular, advice to meet with their lender," Dal Bianco says. "Make sure they understand the different options available. Figure out how much they can afford. We always suggest people figure out how much they can afford before they go house-hunting. When you find the home of your dreams it's a very emotional attachment. Make sure you're looking at homes that are in your price range."
Many women, particularly those with existing student loans, feel they can't get into the market until they've wiped clean their debts. That's not necessarily true.
"You can carry both, but in the amount of mortgage or home equity line of credit that you'll be able to get, those other debts will come into play in terms of how much you can afford," the TD spokesperson reveals.
"Sometimes some of those credit cards and personal loans are going to be at much higher interest rates than a mortgage would be. So you may want to consolidate that into the mortgage amount -- you could pay down your student loan and add that amount to your mortgage, for example."
But what many people, singles and couples alike, forget to do, is save up three to six months worth of living expenses -- especially in this fragile economic climate where layoffs are an almost daily occurrence.
"Make sure you have a pool of funds for a rainy day. Don't spend to the maximum of what you can afford. Look for homes that are within a range that leaves you also with a slush fund," Dal Bianco advises.
"The rule of thumb used to be: have about three months worth of funds for a rainy day. Now we're suggesting that six months might be a better number to have in place. In case you by chance you lose a job, at least with six months' savings you have the ability to find another job."
The
TD Canada Trust Women and Home Ownership Poll was conducted in February -- 1,000 females who bought a home on their own within the past decade were surveyed.