Improved Mortgage Prepayment Penalty Disclosure
March 5, 2012 | Posted by: Crescent Mortgage Corp.
Yesterday, the federal government published a Mortgage Prepayment Code. The Code will guide all federally regulated institutions in how they communicate the Interest Rate Differential (IRD) to borrowers.
In short, lenders will be required to provide more information on how prepayment charges are calculated and explain the differences between mortgage products, including ways to pay off a mortgage faster without incurring penalties.
Federally regulated lenders must be in full compliance with the new code by November 5, 2012. The Financial Consumer Agency of Canada will monitor that compliance on an ongoing basis.
For more details, please visit http://www.fin.gc.ca/n12/data/12-025_3-eng.asp