House Standing Committee on Finance (February 13, 2024)
ANNEX E: Other parliamentary business of relevance
Order Paper Questions
Q-18692 — October 23, 2023 — Mr. Nater (Perth—Wellington) — With regard to the Financial Consumer Agency of Canada’s (FCAC) July 2023 Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances (Guideline): (a) how many financial institutions who provide mortgage lending in Canada were consulted by the FCAC on this Guideline; (b) did any of the financial institutions consulted raise concerns with the FCAC regarding the Guideline, prior to the implementation, and, if so, what are the details, including what concerns were raised and by which financial institutions; (c) if no financial institutions were consulted before the FCAC implemented the Guideline, why were they not consulted; (d) have any financial institutions raised concerns with the FCAC since the Guideline was introduced, and, if so, what are the details, including what concerns were raised and by which financial institutions; and (e) is the Guideline temporary or will the FCAC leave it in place indefinitely?
Report of the Standing Senate Committee on Banking, Commerce and the Economy
FCAC is mentioned at Question 9 (p. 15). See relevant excerpts below.
Q9. The federal government, through the Office of the Superintendent of Financial Institutions and the Financial Consumer Agency of Canada, should strengthen consumer protection and ensure that financial institutions are offering safe mortgage products to Canadians and providing fair and reasonable relief measures to help those in financial distress.
- With respect to variable-rate mortgages with fixed payments, Peter Routledge indicated that, from OSFI’s perspective, it is a “dangerous product” because it can put a homeowner in a position of making mortgage payments that are less than the interest being charged, resulting in a growing mortgage balance and therefore a higher risk of default. He indicated that the work OSFI has done with the Financial Consumer Agency of Canada (FCAC) to provide relief options to consumers facing financial difficulties should lessen the incidents of delinquency if they are provided fairly.
- Questrade Financial Group also recommended that the federal government allocate adequate resources to the FCAC so that it can deliver objective and timely financial literacy programs to Canadians who are concerned about the rising cost of living and housing affordability.
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