Credit agreement for a line of credit
Credit Agreement for a Line of Credit – Information box referred to in section 52 of the Financial Consumer Protection Framework Regulations and in subsections 6(2.1) and (2.2) and Schedule 3 of the Cost of Borrowing (Trust and Loan Companies) Regulations, the Cost of Borrowing (Canadian Insurance Companies) Regulations and the Cost of Borrowing (Foreign Insurance Companies) Regulations.
The following example applies to all Federally Regulated Financial Institutions (FRFIs).Footnote 1 The example also applies to information boxes presented in electronic format.
| Initial Credit Limit | $20,000.00 |
|---|---|
| Annual Interest Rate | 10.75% Your interest rate is expressed as today’s (name of FRFI) prime rate* plus or minus an adjustment factor. Your interest rate is the prime rate + 3.50% As of July 23, 2024, the prime rate is 7.25% Your interest rate will vary automatically if and when the (name of FRFI’s) prime rate varies. *The prime rate means the variable annual interest rate that (name of FRFI) publishes from time to time as a point of reference. |
| Date from which Interest is Charged | You are charged interest from the day you withdraw money, until you pay the money back in full. Interest is calculated on the daily balance. There is no interest-free grace period. |
| Minimum Payment | 2% or $50.00 Your minimum payment will be the greater of 2% of the outstanding balance owing and as shown on your monthly statement or $50. |
| Foreign Currency Conversion | 2.50% You will be charged in Canadian currency if you use your account to make transactions in foreign currency. We will convert it directly to Canadian dollars at the exchange rate in effect at the time we post the transaction to your account. When the transaction is posted to your account, in addition to the exchange rate, you will be charged a foreign currency conversion of 2.50% for each foreign currency transaction. |
| Annual Fees | No Annual Fees |
| Other Fees | To be charged on the day the transaction occurs (unless otherwise indicated): Cash advance using the card: $5.00 Returned or refused payment due to insufficient funds: $40.00 Over the credit limit: $20.00 Extra copy of your monthly statement: $5.00 |
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