There are financial questions that Canadians often wonder about. What's the best way to lower the total cost of buying a home? Do you have to pay income tax on the interest earned in your savings account? Does using your credit card frequently reduce your credit rating?
The Government of Canada's recently updated financial literacy quiz poses nine questions that help measure your financial knowledge in key areas. Other questions look at your behaviour and attitude toward money, and show how they compare to others, based on survey results.
The results give you a clear idea about what you know—and don't know—about money and finance. Links in the results lead to related resources from the Canadian Financial Literacy Database, which you can use to improve your financial knowledge.
The answers to the above questions:
• Making a larger down payment is the most effective way to reduce your monthly mortgage costs.
• You may have to pay income tax on the interest earned in your savings account.
• No, your credit rating is not affected by how often you use your credit card. Your credit rating reflects how well you make your regular payments.
Research shows that many Canadians lack basic knowledge on how to manage their finances. Many do not have a household budget, the first step in managing personal finances.
More information is available online at www.ItPaysToKnow.gc.ca
As licensed Real Mortgage Associates and members of the RMA group we are focused on providing you with top quality mortgage advice.