In a press release on February 6, 2015 Lucie Tedesco Commissioner Financial Consumer Agency of Canada stated that just because interest rates have gone down, referring to the recent Bank of Canada decision to lower the overnight rate, does not mean that Canadians “should take on more debt.” In fact the low interest rates good reason to lower debt.
To many mortgagers (owing money borrowed on real estate) or those with loans whose payments are calculated based on the Prime rate, which in turn is calculated on the Bank of Canada’s overnight rate, low interest rates can be a double edged sword. Especially if you can’t control your spending; however if you are able to curve your appetite for borrowing, then for you low interest rates good reason to lower debt as you can pay more towards your principal and less towards interest payments.
Commissioner Tedesco went on to say that “Canadians should look at this low interest-rate environment as an opportunity to pay debt down, rather than to accumulate more, even for a larger house, a newer car or a winter vacation.” We should be realistic and be ready for when interest rates will increase.
For its part the Financial Consumer Agency of Canada has developed tools and resources to assist the consumer with managing their debt obligations and can be found at “How to Beat that Debt.”
To read the full press release from Lucie Tedesco Commissioner Financial Consumer Agency of Canada click here.
Trusterra Mortgage is here to help. If you currently have a mortgage and are considering to consolidate your debt, or want to get the lower interest rates that are available currently, contact us to see what options are available for you and we’ll assess your current financial situation to see whether it is worth it for you to break your mortgage to refinance it or not.
The Bank Account Selector Tool is really cool and a helpful tool on the Financial Consumer Agency of Canada’s web site. It has been created to help you the consumer to compare features and find the chequing or savings account that best suits your needs.
The account selector tool has many options to select from making your search refined and accurate to find the right bank account for you.
On the left hand side of the site you can narrow your search by telling the tool what type of account you are considering; either a ‘chequing’ or ‘savings’ account. Then you tell it whether you want the service to be in CAD Canadian Dollar, or USD United States Dollar. Further refinements are also available, such as selecting type of service features you would like to have and the technology to use to access the account.
You can easily learn how to protect yourself from financial fraud. The first thing to remember and accept is financial fraud can happen to anyone and you need to take the necessary steps and measures to protect yourself from financial fraud.
In learning how to protect yourself from financial fraud you need to first recognize in what forms fraudulent activities come in; such as emails, phone messages, web sites, SMS, from a stranger, lottery, survey call, or even from a friend.
In this video prepared by the Financial Consumer Agency of Canada, whose mission is to empower Canadian financial consumers and promoting responsible financial market conduct, we learn the types of fraud, tips to avoid scams and what fraud victims should do.
If you feel that you have been a victim of fraud contact your local law enforcement agency immediately. You can also visit the Financial Consumer Agency of Canada’s web site for more tools and resources to help you.
A great video from the Financial Consumer Agency of Canada #FCACan about dealing with debt. They suggest to “borrow only what you can afford to pay back.” In this video they show teach you to “learn the true cost of debt, debt danger signs and ways to manage and eliminate debt.”