Credit agreement for a variable interest loan for a fixed amount (Mortgage)
Credit Agreement for a Variable Interest Loan for a Fixed Amount (Mortgage) – Information box referred to in section 39 of the Financial Consumer Protection Framework Regulations and subsections 6(2.1) and (2.2) and Schedule 2 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.
| Principal Amount | $619,000.00 |
|---|---|
| Annual Interest Rate | 6.95% Variable rate per year. This interest is compounded twice per year but charged monthly. |
| Determination of Interest | Your interest rate is expressed as today’s (name of FRFI) prime rate* plus an adjustment factor. Your interest rate is the prime rate + 1.00% As of July 27, 2024, the prime rate is 5.95% 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. |
| Annual Percentage Rate | 6.97% The interest rate for a whole year (annualized), including applicable fees such as service charges, loan origination fees or administrative fees when applicable. |
| Term | 5 years The term of the loan is closed for the whole five years, which means that you cannot pay down more than your prepayment privilege without paying a penalty. |
| Date of Advance | September 1st, 2024 This is the date your funds will be advanced. Interest will be calculated and charged from this date on. |
| Payments | $4,565.87 on the 1st of every month Your payment is payable monthly and includes payment toward the principal amount, the accumulated interest and, when applicable, your monthly property tax portion. |
| Amortization Period | 20 years Based on the current terms and conditions, your mortgage will take 20 years to pay in full. If as a result of rising interest rates, payments do not keep pace with the mortgage amortization schedule, a lump-sum payment will be required before or at mortgage renewal to maintain the amortization schedule or remortgaging to establish a new amortization schedule. |
| Prepayment Privilege | "10+10" Without paying a penalty, you may once per year:
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| Prepayment Charges | You will be charged a penalty if you pay more of your mortgage than the prepayment privilege allows. If you want to pay out all or part of your mortgage before the end of your term, you will also pay a penalty. Your penalty will be the greater of:
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| Default Insurance | $5,450.00 (included in your principal amount) Insurance premium $5,000.00 Tax (9%) $450.00 Total $5,450.00 |
| Other Fees | Discharge fee: $200.00 Default charge: $50.00 Returned or refused payment due to insufficient funds: $40.00 Appraisal fee: $300.00 |
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