For the purpose of point (d) of the first subparagraph, where a liability confers upon its owner a right to early reimbursement, the maturity of that liability shall be the first date where such right arises.

For the purpose of point (d) where a liability confers upon its owner a right to early reimbursement, the maturity of that liability shall be the first date where such a right arises.

Whilst recognising the diversity in mortgage funding mechanisms and the range of products available, certain standards with regard to early repayment of credit are essential at Union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to compare offers in order to find the best products to meet their needs.

The competent authority may at any time grant permission for early redemption of dated or undated instruments in the event that there is a change in the applicable tax treatment or regulatory classification of such instruments which was unforeseen at the date of issue.

5. Any compensation shall not exceed the amount of interest the consumer would have paid during the period between the early repayment and the agreed date of termination of the credit agreement.

Mr. Jack Frazer (Saanich-Gulf Islands, Ref.): Mr. Speaker, the Canadian Real Estate Association in consultation with the Canadian Bankers Association and the Consumers Association of Canada proposed fair and equitable amendments to the Interest Act for both mortgage borrowers and mortgage lenders (1400 ) They say the act must be amended to: first, provide for mortgage prepayment, adopting a uniform prepayment penalty that consumers understand; second, define the interest rate differential formula based on the remaining term as the best method to achieve fairness; third, retain the three months penalty currently included in the National ...[+++] Housing Act; fourth, standardize the formula and right to prepayment with user friendly terminology to let people understand what they are signing; and finally, require lenders to reveal true mortgage borrowing costs to ensure the consumer clearly understands the terms and conditions.