Bill C-459 (Historical)

An Act to amend the Interest Act (prepayment charge)

This bill is from the 42nd Parliament, 1st session, which ended in September 2019.

Sponsor

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

Status

Outside the Order of Precedence (a private member's bill that hasn't yet won the draw that determines which private member's bills can be debated), as of June 14, 2019
(This bill did not become law.)

Summary

This is from the published bill.

First Session, Forty-second Parliament,
64-65-66-67-68 Elizabeth II, 2015-2016-2017-2018-2019
HOUSE OF COMMONS OF CANADA
BILL C-459
An Act to amend the Interest Act (prepayment charge)
FIRST READING, June 14, 2019
Mr. Caron
421610
SUMMARY
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 primary residence.
It also sets out the circumstances in which such a charge must not be exacted.

Similar bills

C-606 (41st Parliament, 2nd session) An Act to amend the Interest Act (prepayment charge)

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-459s:

C-459 (2012) Air Passengers' Bill of Rights

C-459 (2010) An Act to amend the Excise Tax Act (goods and services tax on school authorities)

C-459 (2009) An Act to amend the Excise Tax Act (goods and services tax on school authorities)

C-459 (2008) Law Ukrainian Famine and Genocide Memorial Day Act

C-459 (2007) Ukrainian Famine and Genocide Memorial Day Act

C-459 (2005) An Act to amend the Canada Health Act (Autism Spectrum Disorder)

1^st reading

Interest ActRoutine Proceedings

June 14th, 2019 / 12:20 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

moved for leave to introduce Bill C-459, An Act to amend the Interest Act (prepayment charge).

Mr. Speaker, I am pleased to introduce this bill, which is inspired by a bill that was tabled in the last Parliament by my then colleague Laurin Liu, who was the member for Rivière-des-Mille-Îles.

Breaking a mortgage contract before it comes to term triggers significant penalties. For example, if a couple signs up for a five-year mortgage to buy a $300,000 house and then gets a divorce after three years, the penalty they would be charged for the forced sale of the house could be as high as $9,000. These fees are widely panned, and they are the number one source of complaints to Canada's Ombudsman for Banking Services and Investments.

This bill will limit the penalty for breaking a mortgage early to six months' worth of interest. If anyone thinks this bill sounds a little extreme, I would point out that these fees have been banned in the United States. We believe that this is a necessary measure for protecting mortgage holders who unfortunately need to break their mortgage early, rather than letting the big banking firms pocket these fees. The bill would put an end to this exploitation.

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