Reimbursement of Mortgage Loan Insurance

Topic

Reimbursement of Mortgage Loan Insurance

Case number

Description

Pursuant to the Canadian Forces Integrated Relocation Program (CF IRP), CF members may be reimbursed for Mortgage Loan Insurance (MLI) expenses under certain circumstances.  However, there appears to be an inconsistency between the English and French versions of the MLI provisions.  While the English text of article 8.3.10 requires that CF members transfer the equity from the home at origin “upon closing of the replacement residence”, this limitation is not present in the French version.  Rather, the French text requires only that the equity be transferred immediately from the sale of the home towards the new residence. 

The Board noted that this inconsistency could lead to unfairness, as CF members who may be entitled to reimbursement of MLI expenses under the French provision would not be entitled under the English provision.  Further, the intent of the MLI provisions is not clearly stated in the CF IRP, and the Board found that the restrictive interpretation of the English text may not be practical or supported. 

Recommendation

The Board recommended that the Chief of the Defence Staff direct that the French and English versions of article 8.3.10 of the CF IRP be reconciled, and that the intent of the English version be reconsidered and clarified.

Final Authority Decision

The CDS agreed with the Board that corrective action be taken to reconcile the discrepancy between the English and French versions of article 8.3.10 of the CF IRP. This article should reflect the true intent of the policy which is that reimbursement of MLI would occur if 100% of the equity from the former is transferred to the new residence as long as it is within one year before or two years after the COS date.

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