The Harper government announced Sunday that it would be moving forward with several measures to help Canadian consumers achieve greater control over their own finances.
In a release posted to the Department of Finance Canada website, the Honourable Ted Menzies, Minster of State (Finances) and Shelly Glover, Parliamentary Secretary to the Minister of Finance, announced that measures would be taken to ban unsolicited credit card cheques, and that a shorter cheque hold period would be instituted later this year. It is believed that these changes will provide Canadian’s with more timely access to their own money. A new Mortgage Code was also announced.
What to Expect From the Changes
This latest round of updates are part of the 2011 Economic Action Plan, and are expected to take affect August 2012. The proposed regulations banning the distribution of unsolicited credit card cheques will require federal financial institutions to receive the express consent of borrowers before they can distribute the product in question.
Minister Menzies believes that this approach will help Canadian citizens make a more informed decision on what is traditionally considered a higher interest product.
Laurie Campbell, CEO of Credit Canada Debt Solutions, was quoted in the release as saying:
I applaud the Government of Canada for further protecting consumers with these latest measures on unsolicited credit card cheques. By ensuring unsolicited cheques are not received by borrowers, indiviuals will be able to determine if they want these products themselves. This will ensure protection for those individuals who may not fully understand how they work and the cost involved.
Canadian consumers will also benefit from a new Mortgage Code that requires federal financial institutions better explain the difference between available mortgage products. The proposed measure will require banks to provide consumers with information on how to pay off their mortgage faster without incurring penalties. The Code will also require financial institutions to be more transparent when it comes to sharing information on how repayment charges are calculated.
How Your Mortgage Broker Can Help
If you’re struggling to understand the various forms of mortgage products available to consumers, don’t stress! Instead, contact your mortgage broker. Mortgage brokers are here to make your financing hunt easier. Brokers are replete with knowledge and information, and their main job is to provide their clients with the best possible advice. If you have questions concerning your mortgage, including repayment charges and penalties, don’t be afraid to ask your broker. A professional mortgage broker will be able to track down the information for you. Learn more about brokers and if a mortgage broker is right for you.
Mortgage rules and regulations are constantly changing. Stay tuned to Mortgage Talk Canada for all the latest news and updates.