According to the TD Canada Trust Boomer Buyers Report, when Canadian boomers make their next move they will be looking to downsize to smaller homes. Four-in-five Canadian boomers say their next move will be to a smaller home, either to save money (46 per cent) or to enjoy more luxurious features (34 per cent).
When it comes to equity in their homes, this may surprise you. Only 44 per cent have paid off their entire mortgage. Of those boomers who have a mortgage, one-third have paid off more than 60 per cent, but one-quarter have paid off less than 25 per cent of their mortgage.
The desire for a detached, single-family home dominates as the first choice of 61 per cent of those surveyed. Condos come in at 24 per cent. Sixty-one per cent of boomers want a backyard and garden and 57 per cent balk at having to pay condo fees. On a personal note, I wonder if a question should have been included about having the rules and a board of directors dictate lifestyle.
This is relevant because Canada’s baby boomers are one third of the population and therefore they’ll have an impact on Vancouver’s real estate market if four out of five of them plan to downsize after retirement.