Brokers are pleased to hear that more transparency will finally be required of their major bank competitors.
“Transparency is very important to the consumers as they can make an informed decision of whom they would like to conduct business with,” Angela Wong-Liao of Invis the Money Lady said on MortgageBrokerNews.ca. “Our broker channel has been bombarded with so many disclosure forms since January 2009 and I believe that the lenders — whether it is a bank, credit union, trust company, investment firms — should have similar disclosures when they are dealing directly with consumers as it is their fiduciary duties to do so.”
Canada’s eight largest banks have now promised to provide more information about collateral mortgages; including online educational resources and better training for bank employees. These resources should allow employees to better explain the difference between collateral charge mortgages and their conventional counterparts.
Of the voluntary policy, Finance Minister Joe Oliver says, “Our government is standing up for consumers and saving Canadians money.”
At the same time many brokers believe this to be one small step to better protecting clients – especially those who may encounter financial trouble.