Mr. Speaker, the Canadian Real Estate Association in consultation with the Canadian Bankers Association and the Consumers Association of Canada proposed fair and equitable amendments to the Interest Act for both mortgage borrowers and mortgage lenders.
They say the act must be amended to: first, provide for mortgage prepayment, adopting a uniform prepayment penalty that consumers understand; second, define the interest rate differential formula based on the remaining term as the best method to achieve fairness; third, retain the three months penalty currently included in the National Housing Act; fourth, standardize the formula and right to prepayment with user friendly terminology to let people understand what they are signing; and finally, require lenders to reveal true mortgage borrowing costs to ensure the consumer clearly understands the terms and conditions.
Government should listen to consumers and representatives from the Canadian Real Estate Association who are in Ottawa this week to urge for measures to strengthen consumer rights by amending the Interest Act.