Mortgage help urged for widows

OTTAWA — Finance Minister Jim Flaherty says he’s going to bat for the widows of Canadian soldiers caught up in a mortgage-insurance fight with financial institutions.

Several widows of soldiers killed in Afghanistan say they were told by their banks or insurance companies that the mortgage insurance they’ve spent years paying into does not apply because their spouses died in combat.

Liberal MP Judy Sgro raised the matter in the House of Commons on Monday, asking what the government is doing to help the women.

"These individuals all deserve the highest respect and care from their government and all Canadians," Sgro said.

"When will they offer the widows and the families of our fallen soldiers automatic relief against future mortgage payments?"

Flaherty responded that he was "shocked" to hear about the situation and said he has already taken action.

"I made it clear to the banks today that I expect them to be generous in their treatment of all widows in this country. I await their response and I will be pleased to report to the House with respect to their response as soon as it is received."

Kendra Mellish, whose husband Warrant Officer Frank Mellish, a native of Truro, died last September in a firefight in Afghanistan, said she was initially told she would likely not be able to collect on her mortgage insurance because of a war exclusion clause.

She pursued the issue with officials at the Bank of Montreal, who issued the policy near her home at Canadian Forces Base Gagetown.

While awaiting an answer, Mellish was forced to continue paying her mortgage. Four months later, she says the bank revealed it had no such exclusion clause and would begin payments.

© 2007 The Halifax Herald Limited