December 16, 2010

Get the straight goods on mortgages

Taking out a mortgage is a big financial commitment — probably one of the biggest you’ll ever make. From deciding whether to go with a fixed or variable rate, to determining how long you’ll need to pay off your mortgage, to figuring out how much you can afford to borrow and how much money you’ll need to buy and maintain your home, there are many factors to consider.

“Researching the choices available can make a huge difference in the amount of money consumers will pay in interest and other charges. There are so many options for consumers, including the type of lender, and the size and frequency of payments, that it can be overwhelming,” according to Ursula Menke, Commissioner of the Financial Consumer Agency of Canada (FCAC).

FCAC offers free mortgage material, including publications, tip sheets, video testimonials and two online interactive tools — The Mortgage Qualifier Tool and Mortgage Calculator that can be found online at moneytools.ca. There’s also information on areas you may not have considered: how to pay off your mortgage faster, how to borrow on your home equity and what to consider when renewing and renegotiating your mortgage.

This article was provided by the Financial Consumer Agency of Canada (FCAC). The FCAC protects the rights of consumers and informs them about financial products and services. It was established in 2001 by the federal government to strengthen supervision of the financial industry and expand consumer education in the financial sector. More information is available on our website: fcac.gc.ca.