CHERRY HILL, N.J., March 5, 2014 /PRNewswire/ -- TD Bank, America's Most Convenient Bank®, has announced results of its second annual Mortgage Service Index, a nationwide consumer survey that gauges the home buying experience. The Index revealed that 68 percent of Hispanics this year (compared with 62 percent last year) found their most recent home buying experience to be "excellent" or "very good," compared with 62 percent of the general market.
The TD Bank Mortgage Service Index, which was generated from a recent survey of nearly 1,500 consumers who purchased homes within the last ten years, was designed to assess opportunities and challenges during the home buying process, with a specific emphasis on home financing. Index results showed the number of Hispanic first time homebuyers increased by 10 percent since 2013. For full survey results and regional Hispanic data visit https://mediaroom.tdbank.com/msi2014.
"The Hispanic population continues to grow in the United States and lenders will need to make sure that they have the products and people in place who can create a legendary experience for this important segment of the home buying population," said Michael Copley, Executive Vice President, Retail Lending, TD Bank. "Results from TD Bank's Mortgage Service Index demonstrate that honesty and accessibility will be paramount to meeting and exceeding the home financing expectations of Hispanic buyers."
Hispanic homebuyers in 2014 reported an eight percent decrease in their home buying stress, with 34 percent of respondents reporting the experience to be "extremely" or "very stressful" compared to 42 percent in 2013.
The survey also revealed Hispanics are as likely to obtain their most recent mortgage through their primary bank as they are with a new bank or institution (39 percent respectively).
"There are certainly advantages and benefits to choosing a primary bank through the lending process," added Copley. "For example, at TD Bank we offer a discounted mortgage rate for customers who maintain a checking or savings account with the bank."
Hispanics Prefer Face-to-Face Interaction during Mortgage Process
In-person experience continues to be the preferred way for Hispanics to interact with lenders during the mortgage process. According to the TD Index, about 75 percent of Hispanics met with a lender in person compared with the general market, where 65 percent applied in person.
While more Hispanics met with their lender in person, it is also evident that they are using online sources to do mortgage research referring to bank/lender websites (38 percent) as a source of information more than the general population (28 percent).
"Through the Mortgage Service Index, we've found that regular, open communication with a trusted lender leads to a more positive experience for buyers," said Copley. "And even though our research has shown that Hispanics are leading the way with banking technology, it also is clear that online resources have not replaced the value that's provided from an in person meeting with a lender."
Market Comparison – New York and Florida Hispanic Home Buying Experience
- Hispanic homebuyers in New York City are more likely to have purchased a home in the past two years than their Floridian counterparts (43 percent vs 34 percent), and are 12 percent more likely to be first time buyers.
- Nearly half of those in New York City obtained their mortgage from their primary bank as opposed to only 40 percent of those in Florida.
- More Hispanic homebuyers in New York City rated theirs as "very good" or "excellent" with respect to honesty (64 percent compared to 52 percent in Florida) and simplicity (58 percent vs 45 percent).
- New Yorkers are more likely to feel stressed about their recent home buying experience with 48 percent of respondents reporting higher levels of stress compared to 34 percent of Floridians.
The study was conducted among a nationally representative group of consumers from January 13 - 17, 2014. The sample size of 505 has a margin of error of +/- 4.4 percent. The survey was hosted by global research company Angus Reid Public Opinion.
About Angus Reid Public Opinion
Angus Reid Public Opinion is the Public Affairs practice of Vision Critical—a global research company. Vision Critical is a leader in the use of the Internet and rich media technology to collect high-quality, in-depth insights for a wide array of clients.
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 8 million customers with a full range of retail, small business and commercial banking products and services at approximately 1,300 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.tdbank.com. 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.
- TD Bank
- Michael Copley