Interest Act

Interest Reduced #178

Legally Speaking

By Gerry NeelyB.A., LL.B. Anyone paying or expecting to receive interest at a rate of say 1 ½ % per month, should check the contract under which interest is payable to see if it contains a statement of the yearly rate of interest which is equivalent to the 1 ½ % per month. The reason

Interest Calculation #95

Legally Speaking

By Gerry NeelyB.A. LL.B. Have you ever had a vague suspicion that the interest quoted to you on the pay-out of a loan was higher than it should be? However, your suspicions were lulled by the delivery by the mortgagee of an amortization schedule showing in detail the amount of interest charged to you over

Locked-in Mortgage – No right to prepay #84

Legally Speaking

By Gerry NeelyB.A. LL.B. There must still be some high interest mortgages in force because I have received several calls from licensees asking for an update of columns 38 and 39 in which the question of whether or not a locked-in mortgage could be prepaid before maturity was discussed. As you will recall, the opportunity

Damages for Breach of Contract – Avoided or Reduced #64

Legally Speaking

By Gerry NeelyB.A. LL.B. Usually a judge will not assist a person who is in breach of contract, to avoid the consequences of that person’s default. One would expect this to be particularly true where the contracting parties agreed that the default of one party would result in “pre-estimated” damages becoming payable to the other

Royal Trust Company Mortgage Renewal Agreement #47

Legally Speaking

By Gerry NeelyB.A. LL.B. Another case has decided whether or not a mortgagor with a low interest five year mortgage which was renewed during the period of high interest rates had the right to prepay it in spite of the terms of the renewal agreement. In this case, the mortgagors, on June 13th, 1977, had

Prepayment of a Locked in Mortgage #38

Legally Speaking

By Gerry NeelyB.A. LL.B. The contrast between today’s relatively low rates of interest and the high rates found in mortgages which were renewed in 1982 has led the mortgagor with a closed renewal mortgage to try to find ways in which the mortgage can be paid off before maturity. These ways have included protests to

Prepayment of a Locked in Mortgage #38

Legally Speaking

By Gerry NeelyB.A. LL.B. The contrast between today’s relatively low rates of interest and the high rates found in mortgages which were renewed in 1982 has led the mortgagor with a closed renewal mortgage to try to find ways in which the mortgage can be paid off before maturity. These ways have included protests to

Prepayment of a Locked in Mortgage (#2 – A B.C. Decision) #39

Legally Speaking

By Gerry NeelyB.A. LL.B. Column No. 38 reviewed the impact of a 1980 Ontario decision interpreting the provisions of the Ontario Mortgage Act in a way which gave a mortgagor who appeared to be locked into a high interest renewed mortgage the right to pay off the mortgage upon payment of three months’ penalty. As that column