House Standing Committee on Finance (May 31, 2024)
ISSUE: Consumer info on mortgages & national ad campaign on housing & mortgage financing

Key points – Consumer information

• As part of its commitment to strengthening financial literacy, FCAC provides unbiased and fact-based information to help consumers make informed financial decisions. This includes timely and relevant information on new and emerging issues such as mortgage relief options and the risks of fixed payment, variable rate mortgages.
• Based on the Mortgage Guideline, FCAC added new plain-language information for consumers on Canada.ca to inform them about possible mortgage relief options available if they are experiencing financial difficulties.
• An information box at the top of this page warns mortgage holders that extended amortization periods will cost more in the long run because of interest.
• FCAC’s web content about interest on mortgages was recently updated to explain the risks of variable rate mortgages with fixed payments. Consumers with these products are advised to contact their financial institution as soon as possible to discuss options.
• FCAC also offers a suite of online tools including a mortgage calculator, a budget planner and financial goal calculator. These are free, unbiased tools to help Canadians who are looking to buy a home, renew their mortgage, or pay down debt.

Key points – Advertising campaign

• FCAC ran a national advertising campaign (January 15 to March 31, 2024) with a focus on helping Canadians manage their money and navigate the financial marketplace as they consider their home and mortgage finances in financially challenging times.
• The campaign promoted FCAC tools and resources related to financing and paying for a home to help consumers make informed decisions, including mortgage relief options, which were consolidated on a dedicated campaign page on Canada.ca.
• The target audiences were:
  • Mortgage holders with high debt burdens (including those with variable mortgage rates and those renewing their mortgage)
  • Canadians considering buying a home
  • Renters (includes vulnerable groups: low-income households, recent immigrants, members of visible minority groups, and Indigenous Canadians)
• Budget: $2M
• Results: 1 million visits to the web campaign page