This column by Rob Carrick in the Globe and Mail is a great read that covers the culture of borrowing and placing responsibility on financial institutions to change the trends of runaway debt. The task force is a good start, unfortunately, it will take more than a report to get the banks to take responsibility and do the right thing. They will need to overcome the profitability conflict!
CMHC does a good job in setting a ‘code of conduct’ standard for the lending industry and they have taken a stance on collateral mortgages by withdrawing (government) insurance coverage on this type of product, effective April 18, 2011 (NOT TO BE CONFUSED WITH THE CHANGES TAKING EFFECT MARCH 18, 2011). Until the banks follow suit, the consumer must take control of their own mortgage transaction by getting the right advice that will help them make the right choices…but the question is: HOW?