CBA Welcomes New Rules for Mortgage Prepayments
Improved Penalty Disclosures On The Way
The government has just announced a brand new mortgage “code” that requires federal financial institutions:
“…provide more information on how prepayment charges are calculated.”
“…explain the differences between mortgage products, including ways to pay off a mortgage faster without incurring penalties.”
These improved disclosures have been eagerly anticipated by consumer groups。
Indeed, the Financial Consumer Agency of Canada (FCAC) says it “has observed a significant increase in the number of complaints it has received related to mortgage prepayment penalties,” especially interest rate differential (IRD) charges.
CG-8 MORTGAGE PREPAYMENT PENALTY DISCLOSURE