By Rosalind Russell – A new set of guidelines has been released that will standardize the way federally regulated lenders can offer mortgage relief to homeowners struggling under high interest rates.
Many people with variable rates have seen their payments soar as the Bank of Canada raised its interest rates four-and-a-half percent in the past year while homeowners renewing their fixed-rate terms are also seeing increases.
The new policy from the Financial Consumer Agency of Canada will allow lenders to forgive costly fees for prepayment as well as internal fees for those altering mortgage terms, and not paying interest on interest.
Banks are encouraged to proactively monitor their mortgage lists for people at risk of financial distress and contact them to explain their options.
Photo: Mortgage holders should discuss all their options with their bank when it comes to terms of their mortgage, especially in light of the recent bank hikes in interest rates. Photo – unsplash.com
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