November marks Financial Literacy Month in Canada. In honor of this event, the Financial Consumer Agency of Canada (FCAC) offers valuable tips to assist you in achieving financial equilibrium. 

Most of Canadians carry some level of debt. It’s important to recognize that not all debt is bad. For instance, getting a mortgage for home purchase can be a sound investment. Making wise borrowing decisions is key to maintaining a well-balanced budget.  

In Canada, laws and regulations protect financial consumers, ensuring they are treated fairly and have access to essential banking services. These rules prioritize helping people achieve better financial outcomes, especially concerning homeownership and mortgage difficulties.  

Consider the following points for effective financial management. 

Understanding homeownership rights

Owning a home is a significant achievement for many Canadians, but it comes with financial responsibilities. As a homeowner, you have specific rights and protections. Knowing these rights is essential during financial challenges.

Dealing with mortgage challenges

If you’re struggling to meet mortgage payments, you’re not alone. High household debt, rising living costs and rapid interest rate increases can contribute to financial hardships. The first step is to seek help.

Support measures

Canadian banks are expected to assist clients facing mortgage difficulties. When exceptional circumstances create financial challenges, contact your bank. They may offer relief measures, including:

  • converting your mortgage to a fixed interest rate
  • creating special payment plans, or
  • allowing mortgage payment deferrals for a specified period

Empowering Your Financial Journey

Electronic alerts for financial management

Electronic alerts are a valuable tool. Banks must send these alerts to clients when their bank account balance or available credit on their credit card falls below a set threshold. These alerts help you manage finances, avoid fees and maintain financial stability.

Resolving issues

If you encounter problems with your bank, you have the right to file a formal complaint. Each bank must have a complaint-handling process to ensure timely resolution. Banks are required by law to address your complaint within 56 calendar days, ensuring your concerns are taken seriously.

If accessing your financial institution’s complaint process is challenging or delays occur, you can seek help from the Financial Consumer Agency of Canada. This government agency offers guidance and assistance for managing financial issues.

Building a strong financial future

As you navigate your financial journey, understanding your rights and available resources is vital. Your path to financial stability doesn’t need to be uncertain. By proactively seeking assistance, using available support and staying informed, you can confidently navigate financial challenges and establish a more secure financial future.

Your home provides both comfort and financial security. By understanding your homeowner rights, leveraging resources and addressing mortgage difficulties, you can protect your home and financial well-being. During times of financial hardship, remember that you have rights and mechanisms are in place to help you overcome challenges and emerge stronger.

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