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SPECIAL SECTION A S U P P L E M E N T T O T H E W I N N I P E G F R E E P R E S S View online at "Buying a home is an enormous responsibility and agreeing to a mortgage loan is a serious commitment. Being informed empowers you to make good financial decisions for today and for your future." B 6 Mortgages A recent survey among Ontario millennials raises concerns about how prepared those with mortgages are to deal with the likelihood of rising interest rates, and how ready first-time home buyers are for the realities of having a mortgage. The survey conducted by Environics Research for the Financial Services Commission of Ontario (FSCO) asked how confident millennials are when dealing with banks and other lenders regarding mortgages. Only 12 per cent of those likely to get a mortgage said they felt very confident that they know everything they need to know to be able to make the best decisions for themselves and 47 per cent said they were not very or at all confident. Other findings included: • Only 22 per cent of millennials likely to get a mortgage knew that they would have to contribute at least five per cent of the purchase price as a down payment in order to buy a home. • When asked about closing costs, only 39 per cent named legal fees, 24 per cent Land Transfer Tax and eight per cent insurance such as home insurance. Twenty-five per cent said they didn't know what closing costs might be. Meanwhile, of millennials who already have a mortgage, many are not prepared to deal with unexpected events or costs. Just 42 per cent said they have built up six months of emergency savings in case something unexpected happens such as losing a job; only 37 per cent said they understand very well what happens if they miss a mortgage payment; and only 43 per cent have a life, disability or critical illness insurance policy on the mortgage. The survey was conducted as part of FSCO's Financial Literacy Month campaign, which aims to increase awareness among typical first-time home buyers aged 25-34 of the responsibilities of getting a mortgage. The campaign also aims to improve knowledge about their rights as financial consumers. FSCO recommends consumers planning to renew or obtain a mortgage should at the very least: • Ensure they are able to afford the mortgage by taking a close look at their finances, future plans and lifestyle, considering not just how much money they have today, but their financial position for the length of the mortgage. • Consider how they would manage payments if their income fell, their expenses rose, or their mortgage payments increased. • Plan ahead for hard times by building up emergency savings, identifying other funds they can access and clarifying payment options available on their mortgage contract. • Do their research regarding the process of saving, shopping and applying for a mortgage by visiting FSCO's Understanding Mortgages website ( en/understanding-mortgages/Pages/index. html) and other helpful online resources, such as the federal government's Consumer Information website (www. home) and the Canada Mortgage and Housing Corporation (CMHC) website (www.cmhc- - Anatol Monid, executive director, Licensing and Market Conduct Division, FSCO. MILLENNIALS & MORTGAGES SURVEY SAYS ONLY 12 PER CENT ARE CONFIDENT THEY CAN MAKE BEST DECISIONS FRIDAY, MARCH 24, 2017 GUIDE HIGHLIGHTS • Guiding principles that help determine how much you can afford to spend on housing without putting your financial health at risk • List of the upfront and ongoing costs of homeownership • How to prepare for a meeting with a lender or broker, including key documents to bring • Definitions of words to know when buying a home • Explanation of mortgage basics and tips for managing your mortgage • Tips for maintaining your home and protecting your investment • The complete guide is available for download on the CMHC website at • As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need and offers objective housing research and information to Canadian governments, consumers and the housing industry. — SOURCE: Canada Mortgage and Housing Corporation (CMHC) HOME OWNERSHIP GUIDE CMHC OFFERS STEP BY STEP ADVICE ONLINE Buying a home can be exciting, but it can also be a challenging and confusing experience. CMHC is providing guidance to Canadians who are considering buying a home with its updated Homebuying Step by Step. The interactive guide seeks to demystify the process of buying a home in Canada. It's been revised to better reflect the realities of today's housing market by illustrating how to assess financial readiness, providing tools to help prospective home buyers calculate how much they can afford, and incorporating information about next steps, whether these are to make a purchase or make budget changes. Because the decision to buy a home is a personal one, it's difficult to offer advice that applies across the board. That is why the guide includes a complementary workbook to help potential home buyers identify their specific housing needs and plan according to their budget, lifestyle, and goals. "Mortgage rules and evolving markets have Canadians who are looking to buy a home asking important questions and they want answers that are tailored to them. Our step by step guide helps home buyers get to those answers by walking them through the process of buying a home — from figuring out their needs, to knowing their mortgage options, to moving day." — Ina Wielinga, Knowledge Transfer Consultant, CMHC "Choosing to buy a home can be exciting but also requires careful planning. CMHC's Home Buying Step by Step guide gives Canadians the tools and information they need to make informed decisions that they can feel good about." — Claude Gautreau, Knowledge Transfer Consultant, CMHCE 1575 Lagimodiere Blvd | 204.661.1575 2100 McGillivray Blvd | 204.222.2100 333 Main Street, Steinbach | 204.326.3495 H E R E , Y O U R M O R T G A G E M O R E T H A N J U S T A N U M B E R I S M U C H At Steinbach Credit Union, we believe a mortgage goes beyond the rate to what's behind it, an investment in your family, your future, and the community where you live. Call SCU today to meet with a lending specialist.

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