Ontario’s financial services regulator offers multi-cultural consumer education about the benefits and challenges of private mortgages.
The Financial Services Regulatory Authority of Ontario (FSRA) has educational information to help inform consumers who don’t qualify for traditional mortgages from banks or credit unions, and are considering private mortgages. FSRA’s annual multilingual awareness campaign educates and empowers consumers to ask the right questions so they understand the features and costs of private mortgage products.
“Although interest rates are coming down, there is a wave of mortgage renewals this year and families are facing increases that are much higher then when they first secured their mortgage years ago,” said Antoinette Leung, FSRA Head, Financial Institutions and Mortgage Brokerage Conduct. “If you are thinking about getting a private mortgage I encourage everyone to ask a lot of questions, know what you are getting into, and have an exit strategy.”
FSRA aims to educate diverse communities across Ontario about their rights and options, and offers helpful details about private mortgage financing. For example:
• Private mortgages are meant to be temporary solutions, typically lasting one to two years until consumers’ financial circumstances improve and they can get mortgages from traditional lenders, like banks or credit unions.
• Planning for the transition back to traditional lenders is crucial, so consumers should have an exit strategy in place so they can become financially stable as soon as possible.
• If a private mortgage is the right choice, it’s important for consumers to engage FSRA-licensed mortgage professionals, who can provide expert guidance on the terms and conditions of private mortgages.
Learn More
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone. Learn more at www.fsrao.ca.
Links
https://www.fsrao.ca/privatemortgage
https://www.fsrao.ca/consumers/mortgage-brokering
