Interest Rate

PODCAST: What Does the Public Really Think About the Hot Market? (April 2021)

Open House by BCREA logo

On this month’s episode of Open House by BCREA, Research Co. president Mario Canseco shares the results of his recent public opinion survey which asked British Columbians about their thoughts on the current hot housing market. From the causes of the historically busy market to Realtor practice, and government intervention, the public weighs in. [div

Criminal Rate of Interest #243

Legally Speaking

By Gerry NeelyB.A., LL.B. An interest rate in excess of 60% is illegal under Section 347 of the Criminal Code. In one case, a $10,000 bonus on an advance of $180,000, secured by a mortgage for $190,000, to be repaid in 30 days without interest, resulted in an effective annual interest rate of 89%. The

Purchaser's Knowledge of When Approval of Financing Given; Criminal Rate of Interest; Is an Application to Discharge a Mortgage Sufficient Evidence of Clear Title? #194

Legally Speaking

By Gerry Neely B.A. LL.B What are the legal consequences for a purchaser whose Contract of Purchase and Sale was subject to raising a mortgage by October 19, 1990, when the purchasers were not made aware that the mortgage had been approved by that date. The purchasers contracted to use their best efforts and it

Interest – The Criminal Illegal Rate #151

Legally Speaking

By Gerry NeelyB.A. LL.B. In times like these we might feel that high interest rates are a crime, but they don’t become a crime under the Criminal Code of Canada until the effective annual rate exceeds 60%. Since a rate of 59% per annum baldly stated in a loan agreement would make even the most

Interest Clauses – Uncertain and Unenforceable #100

Legally Speaking

By Gerry NeelyB.A. LL.B. What do the following three clauses have in common? “Vendors to carry $90,000.00 by way of a first mortgage payable at $950.00 per month, principal and 12% interest included with a three-year interest adjustment clause. This mortgage to be open and purchaser to have privilege to pay out in full or

Tenancies, Subject to Existing #101

Legally Speaking

By Gerry NeelyB.A. LL.B. Lower interest rates have helped fuel a sharp increase in demand for properties in Victoria and the Lower Mainland, and I trust, throughout the Province. The increased demand has led to fewer listings and that will result in increased prices if demand continues. No one now anticipates that this increased demand

Mortgagee Entitled to Six Month’s Interest in Lieu of Notice #99

Legally Speaking

By Gerry NeelyB.A. LL.B. Mary borrowed $100,000.00 from Joe in August, 1983, which she agreed to pay with interest at 11% in monthly installments over a period of one year. This amount was secured by a mortgage and, when Mary’s payments fell into arrears, Joe commenced a foreclosure action. The action was settled by Joe’s agreement

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

Commissions, Garnishees and Interest #97

Legally Speaking

By Gerry NeelyB.A. LL.B. Before weave the memory of 1986 too far behind, some questions have been asked concerning several of the 1986 Legally Speaking columns. Column 90 discussed a case where an agent was unable to collect a commission where a purchaser had defaulted, and the listing contract omitted to state what the vendor’s obligation would

Foreclosure – Defence of Vendor/Mortgagor Against Deficiency Claim #72

Legally Speaking

By Gerry NeelyB.A. LL.B. The Real Estate Council has recently advised licensees of the desirability of advising a vendor of the vendor’s continuing liability to a mortgage lender under a mortgage granted by the vendor on property that is then sold to another person who agrees to assume the mortgage payments. The decrease in property

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 (#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

The Veterans Land Act Requires Special Consideration #13

Legally Speaking

By Gerry NeelyB.A. LL.B. A listing given by a veteran who occupies land and improvements under an unregistered Agreement for Sale from the Director, The Veterans Land Act, requires special consideration on the part of the licencee who takes the listing. The reason for this is that the veteran does not have an unfettered right to

Concessionary Financing, the Salvation of the Housing Markets #20

Legally Speaking

By Gerry NeelyB.A. LL.B. An article in the Financial Times of Canada of April 12, 1982 reviews the extent to which “concessionary financing” by vendors has been the salvation of the housing markets in the past few months. The article in question suggests that in Canada and the United States, 70% and 500710 respectively of house sales