Canada’s financial consumer watchdog is warning lenders not to take advantage of mortgage holders who are facing severe financial stress as interest rates and the cost of living rise.
In guidelines released Wednesday, the Financial Consumer Agency of Canada said financial institutions need to help provide support to consumers who are facing rising mortgage payments.
It said mortgage holders with variable-rate loans have faced a higher cost of borrowing as interest rates have marched higher, while those with fixed-rate loans have faced increased costs as their mortgages come up for renewal.
“FCAC’s research shows that homeowners with a mortgage are increasingly at risk of experiencing financial hardship, such as having to increase their borrowing for daily expenses or to draw on their savings,” said Frank Lofranco, deputy commissioner of supervision and enforcement for the agency….