An Act to amend the Interest Act (prepayment charge)

This bill was last introduced in the 41st Parliament, 2nd Session, which ended in August 2015.

Sponsor

Laurin Liu  NDP

Introduced as a private member’s bill. (These don’t often become law.)

Status

Introduced, as of May 29, 2014
(This bill did not become law.)

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Interest Act in order to set out the maximum charge that a lender can exact for prepayment of a loan secured by a first mortgage or hypothec on property that is used as a family residence.

It also sets out the conditions under which such charges are not allowed.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, provided by the Library of Parliament. You can also read the full text of the bill.

Interest ActRoutine Proceedings

May 29th, 2014 / 10:05 a.m.
See context

NDP

Laurin Liu NDP Rivière-des-Mille-Îles, QC

moved for leave to introduce Bill C-606, An Act to amend the Interest Act (prepayment charge).

Mr. Speaker, it is my pleasure to introduce in the House of Commons today a bill governing penalties charged by banks when a consumer prepays the full amount of a mortgage. I would like to say that this bill is being seconded by the member for Sudbury.

The purpose of this bill is to limit mortgage prepayment penalties to three months' worth of interest and to prohibit banks from charging penalties if the prepayment is made as a result of the sale of a dwelling following a workplace relocation, serious illness or death, separation or job loss. Currently, consumers are at the mercy of banks, which do their utmost to maximize prepayment charges. These charges can exceed $30,000. Members may recall that, this winter, the NDP launched a major campaign to make life more affordable for Canadians. We made numerous suggestions aimed at protecting consumers from being exploited by banks, credit card issuers and telecommunications corporations. This bill is part of that agenda.

(Motions deemed adopted, bill read the first time and printed)