Boomers upgrade by downsizing

For their next move, Canadian boomers are looking to downsize to smaller homes. According to the TD Canada Trust Boomer Buyers Report, four-in-five Canadian boomers say their next move will be to a smaller home, either to save money (46%) or to enjoy more luxurious features (34%).

"Many boomers find that their needs and priorities have changed since they moved into their current home. If you find you have more room than you need, consider 'right-sizing,'" says Farhaneh Haque, Regional Sales Manager, Mobile Mortgage Specialists, TD Canada Trust. "Moving to a smaller home can allow you to free up assets to put towards your retirement savings or enjoy in other ways."

Three-quarters of boomers say it is important that they pay off their mortgage before they retire, but less than half (44%) have paid off their entire mortgage. Of those boomers with a mortgage, one-third have paid off more than 60%, but one-quarter have a long way to go, having paid off less than 25% of their mortgage.

Haque offers this advice for boomers working to pay off their mortgage: "Talk to an expert about your home financing - you could pay off your mortgage faster with a different payment schedule, such as increasing your mortgage payment frequency from monthly to biweekly."

Moving into a luxurious new condo or a modern bungalow in an a new adult lifestyle community can be a great way for boomers to enjoy the best of both worlds – a new home that suits their lifestyle and that also allows them to pay off their mortgage faster.

For their next home, 61% plan to purchase a detached house, while 24% are planning a move to a new condo. More than half say they are at least considering a condo because they involve less maintenance (84%) and offer better security (54%) and amenities such as a gym or pool (47%). Those who prefer new houses do so because they prefer to have a backyard and garden (61%).