It’s not quite the message TD intended to convey with its new survey of first-time buyers, but that research is helping make the case for mortgage brokers.
More than 60 per cent of the 1,000 Canadians surveyed for TD’s 2012 First Time Home Buyers Report listed their failure to come up with a larger down payment and to budget for closing and other related costs as their biggest regrets.
“The survey results reveal that people generally want the best of both worlds, to be able to buy a home sooner and to have a bigger down payment,” said Brett Currah, a district VP for TD Canada Trust. “What it means at the end of the day, though, is that planning becomes critical.”
That may be more of a plug for mortgage professionals than the banks, which have been slower to adopt the advisory role of their broker competitors.
The high level of buyer remorse – at least in terms of getting their finances in order – suggests there’s a growing need for the expert advice brokers specialize in providing.
The challenge for brokers is in directing consumers to the broker channel and away from bank branches, say industry analysts.
“Combined, the Big Five banks have over 5,000 bank branches and employ close to 300,000 personnel nationwide” writes Andrew Williams, in a study of Canadian brokering. “This significant presence within Canadian communities allows for an unrivalled access to consumers as well as control over the distribution of market information.”