2011 TD Canada Trust Boomer Buyers Reveals Many Boomers Retiring in the Next Three Years Still Have Mortgage
Recently, TD Canada released its 2011 Boomer Buyers Report. The study was conducted by Environics Research Group this past June, and some of the findings are quite surprising. The study found that approximately 39% of baby boomers who plan to retire within the next three years still have a mortgage on their house while about 65% are set to retire mortgage-free. However, many plan to move into a smaller home as part of their retirement strategy. About 17% of those planning to downsize upon retirement get delayed, and 12% don’t downsize at all as a result of adult children still living at home. Canadian boomers are taking some steps to ensure they do not have to carry a mortgage into their retirement: 41% will not require a mortgage at all for their new home, 68% will pay as much as possible on their down payment, 44% will increase the frequency of their payments and 34% will try to save on interest with shorter amortization payments.
Farhaneh Haque, director of mortgage advice at TD Canada Trust,emphasizes how important it is to work toward being able to pay your mortgage down. She also provided several tips on how to do so:
– Increase the amount of each mortgage payment
– Make smaller but more frequent payments
– Make lump sum payments when possible
– If you have adult children living at home, ask for a contribution from them.
For more information on how to manage your mortgage approaching retirement, go to www.tdcanadatrust.com