Acts and Regulations

C-28.3 - Cost of Credit Disclosure and Payday Loans Act

Section 36
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Disclosure regarding renewals of credit agreements in relation to mortgage loans
36(1)Where the amortization period for a mortgage loan under a scheduled-payments credit agreement is longer than the term of the credit agreement, the credit grantor shall, at least 21 days before the end of the term, deliver to the borrower a written notice stating whether or not the credit grantor is willing to renew the credit agreement in relation to the mortgage loan for a further term.
36(2)A credit grantor who is willing to renew a credit agreement in relation to a mortgage loan shall include with the notice referred to in subsection (1) a disclosure statement for the renewed agreement that contains the following information and is based on the assumption that the borrower will make all payments that are due under the original credit agreement in relation to the mortgage loan:
(a) the effective date of the renewed agreement;
(b) the outstanding balance as of the effective date of the renewed agreement;
(c) the nature and amount of any non-interest finance charges that are payable in connection with the renewed agreement;
(d) the term;
(e) the relevant interest rate information referred to in paragraph 32(1)(h) or (i);
(f) the APR;
(g) the amount and timing of all payments to be made in connection with the renewed agreement;
(h) the total of all payments to be made in connection with the renewed agreement;
(i) the total cost of credit;
(j) the amortization period; and
(k) a statement of the conditions, if any, under which the borrower may make prepayments, and any charge for prepayment.
36(3)Where a credit agreement in relation to a mortgage loan is to be renewed, and the credit grantor does not, at least 21 days before the effective date of the renewed agreement, deliver to the borrower a disclosure statement that reflects the terms of the renewed agreement,
(a) the credit grantor shall, on or before the effective date of the renewed agreement, deliver to the borrower a disclosure statement that reflects the terms of the renewed agreement,
(b) the borrower is entitled to prepay the outstanding balance of the renewed agreement without penalty at any time within 21 days after receiving the disclosure statement referred to in paragraph (a), and
(c) the borrower, on exercising the right referred to in paragraph (b), is entitled to a refund by the credit grantor of any non-interest finance charges imposed in connection with the renewed agreement.
36(4)Subsection (3) does not apply if a credit grantor delivers to the borrower a disclosure statement for the renewed agreement at least 21 days before the effective date of the renewed agreement, and the disclosure statement does not reflect the terms of the renewed agreement for any of the following reasons:
(a) the outstanding balance on the effective date of the renewed agreement differs from what was stated in the disclosure statement because of one or more missed, late, early or extra payments;
(b) the interest rate under the renewed agreement is lower than the interest rate stated in the disclosure statement; or
(c) the amortization period or frequency of payments under the renewed agreement differs from what was stated in the disclosure statement.
36(5)If subsection (4) applies, the credit grantor shall, within 30 days after the effective date of the renewed agreement, deliver to the borrower a revised disclosure statement that reflects the terms of the renewed agreement.
Disclosure regarding renewals of credit agreements in relation to mortgage loans
36(1)Where the amortization period for a mortgage loan under a scheduled-payments credit agreement is longer than the term of the credit agreement, the credit grantor shall, at least 21 days before the end of the term, deliver to the borrower a written notice stating whether or not the credit grantor is willing to renew the credit agreement in relation to the mortgage loan for a further term.
36(2)A credit grantor who is willing to renew a credit agreement in relation to a mortgage loan shall include with the notice referred to in subsection (1) a disclosure statement for the renewed agreement that contains the following information and is based on the assumption that the borrower will make all payments that are due under the original credit agreement in relation to the mortgage loan:
(a) the effective date of the renewed agreement;
(b) the outstanding balance as of the effective date of the renewed agreement;
(c) the nature and amount of any non-interest finance charges that are payable in connection with the renewed agreement;
(d) the term;
(e) the relevant interest rate information referred to in paragraph 32(1)(h) or (i);
(f) the APR;
(g) the amount and timing of all payments to be made in connection with the renewed agreement;
(h) the total of all payments to be made in connection with the renewed agreement;
(i) the total cost of credit;
(j) the amortization period; and
(k) a statement of the conditions, if any, under which the borrower may make prepayments, and any charge for prepayment.
36(3)Where a credit agreement in relation to a mortgage loan is to be renewed, and the credit grantor does not, at least 21 days before the effective date of the renewed agreement, deliver to the borrower a disclosure statement that reflects the terms of the renewed agreement,
(a) the credit grantor shall, on or before the effective date of the renewed agreement, deliver to the borrower a disclosure statement that reflects the terms of the renewed agreement,
(b) the borrower is entitled to prepay the outstanding balance of the renewed agreement without penalty at any time within 21 days after receiving the disclosure statement referred to in paragraph (a), and
(c) the borrower, on exercising the right referred to in paragraph (b), is entitled to a refund by the credit grantor of any non-interest finance charges imposed in connection with the renewed agreement.
36(4)Subsection (3) does not apply if a credit grantor delivers to the borrower a disclosure statement for the renewed agreement at least 21 days before the effective date of the renewed agreement, and the disclosure statement does not reflect the terms of the renewed agreement for any of the following reasons:
(a) the outstanding balance on the effective date of the renewed agreement differs from what was stated in the disclosure statement because of one or more missed, late, early or extra payments;
(b) the interest rate under the renewed agreement is lower than the interest rate stated in the disclosure statement; or
(c) the amortization period or frequency of payments under the renewed agreement differs from what was stated in the disclosure statement.
36(5)If subsection (4) applies, the credit grantor shall, within 30 days after the effective date of the renewed agreement, deliver to the borrower a revised disclosure statement that reflects the terms of the renewed agreement.