The Canadian Real Estate Association (CREA) is partnering with the Financial Consumer Agency of Canada (FCAC) to commemorate November as Financial Literacy Month.
As pointed out in the press release below, they are now producing videos to help home buyers. In addition, CREA released the Homebuyers’ Road Map a few years ago, which is an excellent guide for home buyers to navigate through the home buying process.
As stated, REALTORS® are experienced in everything you need to know and to do when buying a home.
In all honesty, financial literacy is not limited to a particular month. It is actually something that everyone should practice on a daily basis, year-round. Responsibly managing your finances and living within your means is the only way to go. But we know it is easier said than done. What CREA has created the new videos to take viewers through the step-by-step process involving the important financial considerations needed to buy a home.
A few videos have CREA president Beth Crosbie explaining mortgage prepayments and mortgage default insurance. In the latter case, the default insurance enables the home buyer to put as little as five per cent down on a mortgage at a cost ranging from 0.6 per cent to 3.35 per cent of the purchase price of the home. It is typically added onto the mortgage, so you pay it off over the life of your mortgage.
Another very helpful online site for home buyers is howrealtorshelp.ca
It helps you calculate your mortgage. How much can you afford? Who do you talk to? Call a mortgage broker to help you secure low rates. Even consider taking over or assuming a seller’s mortgage if the seller is locked into a lower rate than you can get at the time you buy a house. How big a down payment? What about taking advantage of the Home Buyers’ Plan which allows you to use up to $25,000 in RRSPs without paying income tax as long as you pay it back over a number of years. What do you need to apply for a mortgage?
There are also explanations on the mortgage term, amortization and interest rates, as well as a list of extra costs you need to cover when buying a home. Of course, they vary across the country as not all provinces have a land transfer tax such as Manitoba. Some provinces, such as Ontario and B.C., offer first-time buyers generous exemptions on their land transfer tax.
Financial Literacy Month
Buying a home is among the biggest financial commitments most Canadians will make in their lives. The home buying process is often complex and confusing.
Just in time for Financial Literacy Month, the Canadian Real Estate Association (CREA) has collaborated with the Financial Consumer Agency of Canada (FCAC) to develop a series of short videos that define key terms and concepts, such as amortization period and mortgage prepayment.
New videos will be released every Tuesday and Thursday throughout November on CREA’s YouTube channel. The first video was posted earlier today.
These videos complement CREA’s previous contribution to Financial Literacy Month, the Homebuyers’ Road Map.
“Every day, REALTORS® are on the front lines dealing with financial literacy,” said Beth Crosbie, CREA’s president. “I’m proud that we’re helping consumers become more knowledgeable by providing videos that explain key terms and concepts. These are skills they’ll need to make an informed, responsible decision about homeownership.”
“Buying a home may be one of the biggest financial decisions consumers will ever make. That’s why financial literacy is so important and why I’m pleased that November is Financial Literacy Month,” said Kevin Sorenson, Minister of State (Finance). “When consumers have the financial knowledge they need, they are better able to make informed choices and contribute to a prosperous Canadian economy.”
“Two years ago almost to the day, the Canadian Real Estate Association and the Financial Consumer Agency of Canada launched the Homebuyers’ Road Map to empower consumers with the knowledge, skills and confidence to make responsible financial decisions about one of the largest purchases they will ever make,” said Lucie Tedesco, commissioner of FCAC. “The videos launched today — fittingly during Financial Literacy Month — are an excellent way to promote this guide on social media and other channels to help consumers make the right decisions when it comes to mortgages.”