CHERRY HILL, N.J., May 30, 2019 /PRNewswire/ -- While a record
number of homeowners report their most recent home buying
experience was excellent, their appetite for resources and guidance
throughout the mortgage process is stronger than ever, according to
recent research from TD Bank, America's Most Convenient Bank®.
TD's Mortgage Service Index, a national survey of more than
1,800 consumers who purchased a home in the last 10 years, examines
perceptions around the home buying and mortgage experience as well
as the housing market.
Despite rate uncertainty and limited inventory, homebuyers are
optimistic in the current environment. Of those surveyed, 83
percent said it's a good time to buy a home and 30 percent are very
or extremely likely to buy a home in the next three years. This was
particularly true for the New York
City/Long Island market,
where 48 percent said they are extremely likely to purchase a home
in the next year or so.
Technology Enhances and Advances the Mortgage Process
The number of homeowners who applied for a mortgage online has
increased from one in eight (13 percent) in 2014 to more than one
in five (21 percent) this year, demonstrating a gradual shift to
the online channel. What's more, 60 percent said the entire
mortgage process lasted four weeks or less – an all-time high for
the number of borrowers completing the process within the span of
just a month.
"Digital platforms are speeding up mortgage processing on the
front and back ends," said Rick
Bechtel, Head of U.S. Residential Lending for TD Bank. "When
borrowers leverage online platforms for providing documents and
completing necessary forms, we have found it reduces information
intake time by more than 60 percent on average."
The proportion of consumers who rated their home buying
experience as excellent has doubled from 16 percent in 2014 to 32
percent this year. At the same time, 30 percent said the experience
was very or extremely stressful, a figure which has remained stable
since 2014.
Advice from Realtors, Bankers and Relatives Tops Buyers'
Sources
Despite the proliferation of home buying resources online, fewer
consumers today believe they have enough resources to educate
themselves on the mortgage process than three years ago (82 percent
in 2019 versus 90 percent in 2016). In fact, for the first time in
six years, the top three sources of information used by homebuyers
did not include online sources. This year's respondents instead
turned to realtors (51 percent), in-person representatives at their
local bank (42 percent) and family/friends (38 percent), signaling
that prospective buyers are seeking personalized advice and
guidance.
"Today, homebuyers can search online for the basics of the
mortgage process, leading to remarkably more informed borrowers
than we saw even a decade ago. But the reality is homebuying
requires navigating financial options, legal obligations, local
guidelines and complex processes that occur on tight timelines,"
said Bechtel. "It's up to mortgage bankers to provide borrowers
with expert, personalized guidance to reduce stress and create
clarity as they make one of the most significant financial
decisions of their lives."
Aligned to TD's expectations, the survey uncovered substantial
evidence that homebuyers need guidance on costs, loan options and
affordability programs:
- Nearly a third (30 percent) of homeowners incurred $2,000 or more in unexpected charges during the
home buying process.
- Nearly three quarters (74 percent) of homeowners took out a
30-year fixed rate or 15-year fixed rate mortgage, yet 52 percent
plan to stay in their home for 10 years or less.
- Forty-two percent of homeowners are unaware of affordability
programs, which is significant considering the increasing number of
buyers contributing less than 20 percent to a down payment. In
2016, nearly half (48 percent) of homeowners said they put down 20
percent or more, as compared to just 36 percent in 2019.
More information about TD Bank's mortgage offerings can be found
at https://www.td.com/us/en/personal-banking/mortgage/.
Survey Methodology
The study was conducted by research
company Maru/Matchbox. Respondents were composed of a nationally
representative sample of 1,801 American homeowners, with a margin
of error of +/- 2.3 percent. The survey was fielded from
April 2 to 17, 2019. Data has been
weighted by age, gender and region to reflect the population.
About MARU
Maru/Matchbox is a professional
services firm dedicated to improving its clients' business
outcomes. It delivers its services through teams of sector-specific
research consultants that have technology in their DNA,
specializing in the use of Insight Community and Voice of Market
technology. Maru/Matchbox research drives decision-making
across all aspects of customer experience, including innovation,
product, branding, commercialization and communications.
About TD Bank, America's Most Convenient
Bank®
TD Bank, America's Most Convenient Bank, is one of the 10
largest banks in the U.S., providing more than 9 million customers
with a full range of retail, small business and commercial banking
products and services at more than 1,200 convenient locations
throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas
and Florida. In addition, TD Bank
and its subsidiaries offer customized private banking and wealth
management services through TD Wealth®, and vehicle
financing and dealer commercial services through TD Auto Finance.
TD Bank is headquartered in Cherry Hill,
N.J. To learn more, visit www.td.com/us. Find TD Bank
on Facebook at www.facebook.com/TDBank and on Twitter at
www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD". To learn more,
visit www.td.com/us.
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SOURCE TD Bank