6/2/2004 Financial Consumer Agency of Canada provides consumers with tips and tools to assess their eligibility for, and knowledge of, mortgages OTTAWA, June 2, 2004 -- The Financial Consumer Agency of Canada (FCAC) has launched a new on-line toolkit to help consumers understand the ins and outs of mortgages. Recognizing that mortgages are a fact of life for most Canadians, FCAC's toolkit serves as an excellent starting point for consumers ¿ whether they are researching a mortgage for their first home or renewing an existing mortgage. "Consumers need to know and understand the real costs of mortgages before they can make an informed decision on the type of mortgage they need," says FCAC Commissioner Bill Knight. "What they don't know now could cost them thousands of dollars in unanticipated interest and penalty charges down the road." Knight suggests that consumers should ask themselves three key questions before signing a mortgage agreement: How long will I stay in this house? How quickly do I want to pay off my mortgage? and How much can I afford to pay each month? FCAC's toolkit helps answer those questions. With the kit, consumers can: take a 10-question mortgage quiz to assess their knowledge of mortgages; learn about mortgage terms and conditions, consumer rights and responsibilities, and get tips on how to pay off a mortgage faster; use the "mortgage qualifier calculator" to find out whether or not they qualify for a mortgage loan, given their current income and debt level. Each component of the toolkit, including the qualifying calculator, provides tips that will help consumers determine the amount of debt they can actually afford. The facts and tips section focuses specifically on the rights and responsibilities that consumers have when shopping for, and signing, a mortgage contract. FCAC has received more than 1,600 consumer inquiries and complaints about mortgages since it began operating in October 2001. The Agency took common consumer concerns and questions into consideration when developing the mortgage toolkit, which is available on FCAC's Web site at: www.fcac.gc.ca. FCAC ensures compliance with the consumer protection laws that apply to banks and federally incorporated trust, loan and insurance companies. FCAC also provides consumers with accurate and objective information about financial products and services, and informs Canadians of their rights when dealing with financial institutions. - 30 - Media contacts: Elizabeth AllenPublic Affairs Officer(613) 941-4316allen.elizabeth@fcac-acfc.gc.ca Brigitte MineaultPublic Affairs Officer(613) 941-4221mineault.brigitte@fcac-acfc.gc.ca
