Outreach Newsletter introduction:

Cindy and Jeff are first-time home buyers and have no idea where or how to start the process of buying their first home. Ernest just got a raise and wants to know the best way to pay down his mortgage more quickly with his extra income. Yasmina and Patrick are approaching the end of their mortgage term and need to start thinking about renegotiating and renewing it.

Buying a home is probably the largest purchase that people make in their lifetime. It may be scary for many because they jump into the process blindly. The Financial Consumer Agency of Canada (FCAC) has a variety of tools, resources and tips for consumers, mortgage brokers and real estate agents to help simplify financing the purchase of a home.

This issue takes a look at different types of home buyers: first-time buyers, those who would like to pay down their mortgage faster and those who are in the process of renegotiating and renewing the mortgage on their current home. FCAC will help you or your client see mortgages in a different light.

Understanding mortgages can be a challenge, but by using FCAC's tools and resources and by viewing our Success Story featuring Laurin Jeffrey, you can feel more confident about the choices that you make. Laurin Jeffrey is a real estate agent in Toronto, Ontario, who recommends FCAC's tools and resources to his clients because they are informative, free and unbiased.

 Cindy and Jeff are first-time home buyers and have no idea where or how to start the process of buying their first home

FCAC's new publication Buying Your First Home: Three Steps to Successful Mortgage Shopping helps consumers prepare to buy their first home. It also contains a monthly housing expenses worksheet to help people like Cindy and Jeff make a budget for the costs related to owning and maintaining a property.

For most people, buying a home requires getting a mortgage. To make sure they get the mortgage that best suits their needs, Cindy and Jeff will have to figure out what features they need and want in a mortgage get pre-approved and understand their rights when they apply for one.

During the mortgage process, they will also have to ask themselves several important questions. How much of a down payment can they make? What price range is within their budget? What other costs will there be? Are they expecting changes that will affect their household budget in the future?

 Ernest just got a raise and wants to know the best way to pay down his mortgage more quickly with his extra income

Ernest could save thousands of dollars in interest by paying off his mortgage faster—and once it is paid off, a big part of his household budget will be available to achieve other financial goals.

Most home owners have choices that can help them pay off their mortgages more quickly. These choices are described in the prepayment options and conditions of the mortgage contract. All home owners should clearly understand them before signing the contract.

One of the ways to pay off your mortgage faster is to increase the amount of regular payments—but there are other ways, as well. FCAC's publication Paying Off your Mortgage Faster provides additional ways to become mortgage-free sooner.

 Yasmina and Patrick are approaching the end of their mortgage term and need to start thinking about renegotiating and renewing it

When your mortgage term comes to an end, you have to either pay off your mortgage or renew it for another term. This is a good opportunity for Yasmina and Patrick to reassess what they need in a mortgage and to look for mortgage options that better fit their needs at this point in their lives.

FCAC's publication Renewing and Renegotiating Your Mortgage will tell you and your client what to expect when renewing and/or renegotiating a mortgage. It will also give you great insights on when to start shopping around, ways to deal with a mortgage broker and tips to reduce penalty charges.