Mortgage penalty rules change… finally.. well, sort of…

The Federal govt announced some changes to protect Canadian Consumers… including rule changes to credit cards and mortgage prepayment information.   Here’s a link to the entire news release.

For our purposes, we are focusing more on the mortgage prepayment announcement.   Here’s a link to that portion of the news release.

There are 5 Elements to the Code of Conduct for Federally regulated institutions.  The changes must be implemented within 6 to 12 months.   In short, the new Code of Conduct rules will require these lenders to provide clear disclosure on how penalties are calculated, along with online calculators and access to knowledgeable staff that can be contacted through a toll-free phone. Read the rest of this entry »

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