# 2021-103 Pay and Benefits, Mortgage Default Insurance, Canadian Forces Integrated Relocation Program

Case summary

F&R date: 2022-11-30

The grievor requested the full reimbursement of the Mortgage Default Insurance (MDI) costs he incurred for the purchase of a principal residence, which was refused by the acting/Director Compensation Benefits Administration, who noted that pursuant to article 8.3.10 of the Canadian Forces Integrated Relocation Program (CFIRP) Directive, the grievor was required to put 100 percent of the equity from his previous property towards the purchase of the new residence to receive a reimbursement from his core funding envelope. The grievor argued that he was unable to put 100 percent of the equity from his previously owned property into his new property after a separation of assets with his ex-spouse, pointing that they both put 100 percent of the 50 percent equity they each received from the sale of the previous property into their respective new properties.

The Director General Compensation and benefits as the Initial Authority did not accept the grievance, due to its submission outside of the time limits set out in article 7.06 of the Queen's Regulations and Orders for the Canadian Forces.

The Committee found that the intent of article 8.3.10 of the CFIRP Directive is to ensure that the amount of the down payment on a new principal residence represents the amount of equity that the Canadian Armed Forces member extracted from the sale of their previous residence, in order to fulfill the purpose of the MDI. As such, the Committee found that the grievor met the conditions of the policy and is eligible for the reimbursement of the MDI costs he incurred.

The Committee recommended that the Final Authority afford the grievor redress by authorizing the reimbursement of MDI costs to the grievor from his core funding envelope.