Most don't know their terms from their ams

MacLean's magazine recently published an article about the average Canadian's grasp of the mortgage market. You can read the full article here.

The article was focused on the fact that when asked, almost 50% of people could not correctly define what the 'term' of their mortgage was (the length of time you are committed to paying a set interest rate, typically 3 or 5 years) and even fewer knew what 'amortization' was (the total number of years it will take you to pay off your mortgage in full).

But is it any wonder why we are getting a failing grade in financial literacy? Buying a home is the single biggest purchase a person will likely ever make and yet there is little if any school dedicated to helping people become more financially literate.

This is why it's important that you work with someone who is going to take the time to explain things to you when it comes to your mortgage. To help you understand WHY they are making the recommendations they are and how it will help you reach your goals. There are no dumb questions and you have the right to clearly understand what is being suggested to you.

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