Mortgage Broker is the magazine of the Canadian Mortgage Brokers Association and showcases the multi-billion dollar mortgage-broking industry to all levels of government, associated organizations and other interested individuals.
Issue link: http://digital.canadawide.com/i/309414
federalbudget federalbudget 16 | spring 2014 mbabc.ca MortgageBroker the provinces to maintain the integrity of the framework and to support provincial efforts to regulate appropriately all payday lending-type high interest rate products. e Financial Literacy Leader will also work with stakeholders to raise public awareness about the costs of and alternatives to these products. Collateral charge mortgage While many consumers continue to choose a traditional mortgage to secure their home loans, many are increasingly choosing collateral charge mortgages. e impacts of having a collateral charge mortgage may differ from traditional mortgages. For instance, switching between lenders may be more difficult. To make an informed choice, consumers need sufficient information to clearly understand the costs and consequences of collateral charge mortgages relative to traditional mortgages. e Government will require enhanced disclosure, better equipping borrowers to understand these impacts. Powers of attorney Some seniors may ask for help in managing their banking affairs and put arrangements in place for a power of attorney or joint account. In relying on others, seniors are more vulnerable to financial abuse if the power of attorney or joint account is not set up with care. As banks are oen seen by seniors as a trusted authority, it is important to ensure that banks have appropriate and adequate processes and procedures for advising on these matters. e Government will require enhanced disclosure by banks on the costs and benefits of using powers of attorney or joint accounts and more robust bank processes and staff training. Continuing to develop a comprehensive financial consumer code e Government will continue to engage with Canadians on the development of a comprehensive financial consumer code to better protect consumers of financial products and services and ensure they have the necessary tools to make responsible financial decisions. In Economic Action Plan 2013, the Government proposed to develop a comprehensive financial consumer code. In December 2013, the Government launched a national discussion to seek the views of Canadians on how to better protect consumers of financial products. e code will create a framework that protects consumers more effectively in a rapidly evolving financial industry and addresses the unique challenges faced by vulnerable Canadians. e Minister of State (Finance) will conduct national consultations and Canadians' views will be invaluable in developing the code. Enhancing access to basic banking services Universal access to basic banking services is a cornerstone of Canada's strong and vibrant financial services sector. e Government will act to enhance access to basic banking services. Universal access to basic banking is a cornerstone of Canada's financial sector in which Canadians can take pride. Indeed, 96 per cent of Canadians currently have access to banking services. e Government is committing to ensuring that basic banking needs of Canadians are met by our banks. Hundreds of thousands of Canadians Universal access to basic banking services is a cornerstone of Canada's strong and vibrant financial services sector. p14-17_FinancialPriority.indd 16 14-05-08 2:37 PM