The Canadian Mortgage Charter, introduced in the Fall Economic Statement, is not a law but a set of guidelines for banks to support mortgage holders facing financial challenges, particularly due to rising interest rates.

It emphasizes assistance for “vulnerable borrowers” but does not legally define them.

Key points include allowing amortization extensions, waiving certain fees, exempting insured mortgage holders from the stress test when switching lenders at renewal, proactive bank communication before mortgage renewal, and permitting lump sum payments without penalties.

While most rules are not new, proactive bank outreach and stress test exemption for insured borrowers at renewal are. Enforcement relies on the Financial Consumer Agency of Canada (FCAC), which investigates complaints against federally regulated financial institutions.

Please contact our office if you would like to receive complete information about the Mortgage Charter.