Changes to the Banks

The Federal government is hard at work avoid issues again around their review of the Bank Act . They have decided not to look at bank mergers or in bank sale of insurance, but they did address a few interesting points that could effect me.

1) Electronic cheque images to speed up the time it takes for a cheque to clear. I know I would love this one. I hate giving someone a cheque and then having it take a few weeks to clear out of my bank account.

2) Reducing the size of down payment required on a mortgage to avoid mortgage insurance. This one sounds good in principle, but I’m not too sure how much good it will do. I know that I put down 20% on my current house and is I could have saved the mortgage insurance it would have saved me $1500 overall. I suppose this becomes a more significant act as you get into higher priced homes