Ottawa plans to make it easier for new banks to establish themselves in the financial sector. They also plan on improving the access to funding that small banks get from the Canada Mortgage and Housing Corp (CMHC). This could mean that in the future, banks will have more competition. Therefore this could create better deals for consumers.
The Financial Post reports, “I sure hope [there’s more competition],” said Gregory Thomas, executive director of the Canadian Taxpayers Federation, in talking about the changes. “Canada could use one or two strong national credit unions.”
The 2014 Federal budget also mentions future consumer awareness campaigns. Topics could include payday loans, reverse mortgages, powers of attorney and joint bank accounts. As a result, it seems like Canadians may have access to more lenders and more information about mortgages rules and banking.