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Cost of Borrowing Disclosure Regulations

made under

Section 90 of the

Mortgage Regulation Act

S.N.S. 2012, c. 11

N.S. Reg. 125/2020 (effective November 1, 2021)

Table of Contents

Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.

Click here to go to the text of the regulations .

Interpretation and Application

Citation

Definitions

Application of regulations

Application of Sections 5 to 21

Cost of Borrowing

Calculation of APR

Annual interest rate as APR

Included and excluded charges

Disclosure to Borrowers

Content, manner and timing of disclosure prescribed for

Section 27 of Act

Manner of providing information

Disclosure based on estimate or assumption

Clarity of disclosure, acknowledgment, consent

Timing for providing initial disclosure statement

Disclosure statement information—fixed interest mortgage for fixed amount

Disclosure statement information—variable interest mortgage for fixed amount

Disclosure statement information—mortgage securing line of credit

Information to be disclosed in credit card application

Disclosure statement information—mortgage secured by credit card

Disclosure statement—amendment to mortgage

Disclosure statement information—renewal of mortgage

Disclosures when mortgage lender offers to waive payment

Disclosure statement information—cancellation of optional services

Default Charges

Default charges to recover costs

Advertising

Advertising—mortgage for a fixed amount

Advertising—line of credit

Advertising—interest-free periods

Purchasing Insurance

Disclosure of information if borrower required to purchase insurance

Interpretation and Application

Citation

1 These regulations may be cited as the Cost of Borrowing Disclosure Regulations .

Definitions

2 In these regulations,

“APR” means the cost of borrowing expressed as an annual rate on the principal,

calculated in accordance with

Section 5;

“disclosure statement” means a statement containing the information to be

provided by a mortgage lender to a borrower as required by

Section 27 of the Act

and in accordance with these regulations;

“high-ratio mortgage” means a mortgage under which the amount advanced,

together with the amount outstanding under any other mortgage that ranks equally

with, or prior to, the mortgage loan exceeds 80% of the market value of the

property securing the mortgage loan;

“initial disclosure statement” means a disclosure statement provided to a borrower

with whom a mortgage lender proposes to enter into a mortgage;

“principal” means the amount borrowed under a mortgage, but does not include

any cost of borrowing;

“public index” means an interest rate, or a variable base rate for an interest rate,

that is published at least weekly in a newspaper or magazine of general circulation,

or in some media of general circulation or distribution, in areas where borrowers

whose mortgages are governed by that interest rate reside.

Application of regulations

(1) These regulations apply to all mortgages other than a mortgage described in

subsection (2).

(2) These regulations do not apply to either of the following mortgages:

(

a) a mortgage entered into with a borrower who is not a natural person;

(

b) a mortgage that a borrower enters into for business purposes.

Application of Sections 5 to 21

4 Sections 5 to 21 do not apply to a mortgage if the borrower is given a disclosure

statement on behalf of a person acting as the mortgage lender and the disclosure

statement meets the disclosure requirements of the corresponding legislation, as set out

in the following table:

Person Acting as Mortgage Lender

Corresponding Legislation

a bank or an authorized foreign bank as

defined in the Bank Act (Canada)

Bank Act (Canada)

a retail association as defined in the

Cooperative Credit Associations Act

(Canada)

Cooperative Credit Associations Act

(Canada)

an insurance company

Insurance Companies Act (Canada)

a body corporate to which the Trust and

Loan Companies Act (Canada) applies

Trust and Loan Companies Act (Canada)

Cost of Borrowing

Calculation of APR

(1) For the purpose of a disclosure statement, the cost of borrowing for a mortgage is

the APR as calculated using the following formula:

APR = (C ÷ (T × P)) x 100

in which:

APR = the annual percentage rate cost of borrowing,

C = the cost of borrowing, as described in

Section 7, over the term of the

mortgage,

P = the average of the principal of the mortgage outstanding at the end of each

period for the calculation of interest under the mortgage, before subtracting

any payment that is due at that time, and

T = the term of the mortgage in years, expressed to at least 2 decimal points of

significance.

(2) In calculating the cost of borrowing under subsection (1), all of the following

apply:

(

a) the APR may be rounded off to the nearest 1/8 of a percent;

(

b) each instalment payment made on the mortgage must be applied first to the

accumulated cost of borrowing and then to the outstanding principal;

(

c) a period of

(i) 1 month is 1/12 of a year,

(ii) 1 week is 1/52 of a year, and

(iii) 1 day is 1/365 of a year;

(

d) if the annual interest rate underlying the calculation is variable over the

period of the mortgage, it must be set as the annual interest rate that applies

on the date that the calculation is made;

(

e) if there are no instalment payments under the mortgage, then the APR must

be calculated on the basis that the outstanding principal is to be repaid in 1

lump sum at the end of the term of the mortgage;

(

f) a mortgage for an amount that comprises, in whole or in part, an

outstanding balance from a prior mortgage is a new mortgage for the

purpose of the calculation.

(3) The cost of borrowing for a line of credit or credit card that is secured by a

mortgage is as follows:

(

a) for a mortgage that has a fixed annual interest rate, that annual interest rate;

(

b) for a mortgage that has a variable annual interest rate, the annual interest

rate that applies on the date of the disclosure.

Annual interest rate as APR

(1) The APR for a mortgage is the annual interest rate if there is no cost of borrowing

other than interest.

(2) If an interest rate is disclosed in accordance with

section 6 of the Interest Act

(Canada), the APR must be calculated in a manner that is consistent with that

section.

Included and excluded charges

(1) Except as provided in subsection (2), the cost of borrowing for a mortgage, other

than one that secures a line of credit, consists of the aggregate of all the costs of

borrowing under the mortgage over its term, and includes all of the following

charges:

(

a) administrative charges, including charges for services, transactions or any

other activity in relation to the mortgage, but excluding any charges paid to

the mortgage brokerage directly by the borrower and disclosed to the

borrower by the mortgage brokerage;

(

b) charges for the services or disbursements of a lawyer or notary hired by the

mortgage lender that are payable by the borrower;

(

c) insurance charges other than those excluded under clauses (2)(a), (

f) and (h);

(

d) brokerage charges paid by the mortgage lender to a mortgage brokerage in

relation to the mortgage, if the borrower is required to reimburse the

mortgage lender for the charges;

(

e) charges for appraisal, inspection or surveying services provided directly to

the borrower in relation to property that is security for the mortgage, if those

services are required by the mortgage lender.

(2) The cost of borrowing for a mortgage does not include any of the following

charges:

(

a) charges for insurance on the mortgage, if either of the following applies:

(

i) the insurance is optional,

(ii) the borrower is the beneficiary of the insurance and the amount

insured reflects the value of an asset that is security under the

mortgage;

(

b) charges for an overdraft;

(

c) charges to register documents or obtain information from a public registry

about security interests related to property given as security;

(

d) penalty charges for the prepayment of the mortgage;

(

e) charges for the services or disbursements of a lawyer or notary, other than

those mentioned in clause (1)(b);

(

f) charges for insurance against defects in title to real property, if all of the

following apply:

(

i) the borrower selects the insurer,

(ii) the insurance is paid for directly by the borrower,

(iii) the borrower is the beneficiary of the insurance;

(

g) charges for appraisal, inspection or surveying services provided directly to

the borrower in relation to property that is security for the mortgage, if the

borrower receives a report from the person providing the service and is

entitled to give the report to third parties;

(

h) charges for insurance against default on a high-ratio mortgage;

(

i) charges to maintain a tax account that is required for a high-ratio mortgage

or that is optional;

(

j) any charges to discharge a security interest;

(

k) default charges.

Disclosure to Borrowers

Content, manner and timing of disclosure prescribed for

Section 27 of Act

8 The information required to be provided by a mortgage lender to a borrower under

Section 27 of the Act must be in the form of a written disclosure statement that

(

a) includes the information required by these regulations; and

(

b) is given to the borrower within the time period and in the manner specified

in these regulations.

Manner of providing information

(1) A disclosure statement may be in Form 3 of the Forms Regulations made under

the Act or another separate document, or it may be part of another document.

(2) If a borrower consents in writing, in paper or electronic form, a disclosure

statement may be provided to the borrower in an electronic form that the borrower

can retrieve and retain.

Disclosure based on estimate or assumption

10 Information disclosed in a disclosure statement may be based on an assumption or

estimate if all of the following conditions are met:

(

a) the assumption or estimate is reasonable;

(

b) the actual information cannot be known by the mortgage lender when the

mortgage lender makes the statement;

(

c) the information in the statement is identified to the borrower as based on an

assumption or estimate.

Clarity of disclosure, acknowledgment, consent

11 A disclosure statement, or a consent in relation to a disclosure statement, must be

(

a) expressed in plain language that is clear and concise; and

(

b) presented in a manner that is logical and likely to bring to the borrower’s

attention the information that is required to be disclosed.

Timing for providing initial disclosure statement

(1) Except as provided in subsection (2), the prescribed time for when an initial

disclosure statement to a borrower must be provided is at least 2 business days

before the earlier of the following dates:

(

a) the day on which the borrower signs the mortgage;

(

b) the day on which the borrower makes any payment in connection to the

mortgage, excluding any application fee paid by the borrower in connection

with the mortgage.

(2) A borrower who receives legal advice may waive in writing the requirement for an

initial disclosure statement to be provided within the period in subsection (1).

Disclosure statement information—fixed interest mortgage for fixed amount

(1) An initial disclosure statement for a mortgage with a fixed interest rate for a fixed

amount that is to be repaid on a fixed future date or by instalment payments must

include all of the following information:

(

a) the principal amount of the mortgage;

(

b) the amount of each advance of the principal and when each advance is to be

made;

(

c) the total amount of all payments;

(

d) the cost of borrowing over the term of the mortgage, expressed in dollars

and cents;

(

e) the term of the mortgage, and the period of amortization if it is different

from the term;

(

f) the annual interest rate and any circumstances under which it is

compounded;

(

g) the APR, if it differs from the annual interest rate;

(

h) the date on and after which interest is charged and information concerning

any period during which interest does not accrue;

(

i) the amount of each payment and when it is due;

(

j) the fact that each payment made on the mortgage must be applied first to the

accumulated cost of borrowing and then to the outstanding principal;

(

k) an amortization

schedule for the term of the mortgage showing all of the

following:

(

i) the principal amount,

(ii) the due date and amount of each periodic payment,

(iii) the portion of each periodic payment that is charged as interest or is

applied on principal,

(iv) the outstanding balance of the mortgage after each periodic payment,

(

v) the principal amount at maturity;

(

l) information about any optional service in relation to the mortgage that the

borrower accepts, the charges for each optional service and the conditions

under which the borrower may cancel the service, unless the information is

disclosed in a separate statement before the optional service is provided;

Section 8 of the Act, including a description of any components of a

formula used to calculate a rebate, charge or penalty to be imposed on the

borrower if the borrower exercises a right to repay the amount borrowed

before the maturity of the mortgage;

(

n) if

Section 21 respecting providing optional services applies to the mortgage,

the formula set out in subsection 21(3);

(

o) the particulars of the charges or penalties to be imposed on the borrower if

the borrower fails to repay the amount of the mortgage at maturity or fails to

pay an instalment on the date the instalment is due to be paid, including

default charges that may be imposed under

Section 22;

(

p) identifying information about the property in which the mortgage lender

takes a security interest under the mortgage;

(

q) any charge for a mortgage brokerage, if the brokerage charges are included

in the amount borrowed and are paid directly by the mortgage lender to the

brokerage;

(

r) the fact that there is a charge to discharge a security interest and the amount

of the charge on the date that the statement is provided;

(

s) the nature and amount of any charge other than an interest charge.

(2) If the outstanding balance of a mortgage referred to in subsection (1) is increased

because the borrower has missed a scheduled instalment payment or because a

default charge is levied on the borrower for missing a scheduled instalment

payment, and consequently the amount of each of the subsequently scheduled

instalment payments does not cover the interest accrued during the period each

payment is scheduled for, the mortgage lender must, no later than 30 days after the

date the missed payment was scheduled or the default charge imposed, give the

borrower a subsequent disclosure statement that describes the situation and its

consequences.

Disclosure statement information—variable interest mortgage for fixed amount

(1) An initial disclosure statement for a mortgage with a variable interest rate for a

fixed amount to be repaid on a fixed future date or by instalment payments must

include all of the following information:

(

a) the information prescribed in subsection 13(1) for a fixed interest rate

mortgage;

(

b) the annual rate of interest that applies on the date of the disclosure

statement;

(

c) the method for determining the annual interest rate that applies after the date

of the disclosure statement and when that determination is made;

(

d) the amount of each payment based on the annual interest rate that applies on

the date of the disclosure statement and the dates when those payments are

due;

(

e) the total amount of all payments and of the cost of borrowing based on the

annual interest rate that applies on the date of the disclosure statement;

(

f) if the loan is to be paid by instalment payments and the amount to be paid is

not adjusted automatically to reflect changes in the annual interest rate that

apply to each instalment payment,

(

i) the annual interest rate above which the amount of a scheduled

instalment payment on the initial principal does not cover the interest

due on the instalment payment, and

(ii) the fact that negative amortization is possible;

(

g) if the loan does not have regularly scheduled payments,

(

i) the conditions that must occur for the entire outstanding balance, or

part of it, to become due, or

(ii) a description of the provisions of the mortgage that set out the

conditions referred to in subclause (i).

(2) If the variable interest rate for a mortgage referred to in subsection (1) is

determined by adding or subtracting a fixed percentage rate of interest to or from a

public index that is a variable rate, the mortgage lender must give the borrower an

additional disclosure statement at least once every 12 months that contains all of

the following information:

(

a) the annual interest rate at the beginning and end of the period covered by the

disclosure statement;

(

b) the outstanding balance at the beginning and end of the period covered by

the disclosure statement;

(

c) the amount of each instalment payment due under a payment

schedule and

the time when each payment is due, based on the annual interest rate that

applies at the end of the period covered by the disclosure statement.

(3) If the variable interest rate for a mortgage referred to in subsection (1) is

determined by a method other than that referred to in subsection (2), the mortgage

lender must give the borrower an additional disclosure statement that contains all

of the following information no later than 30 days after increasing the annual

interest rate by more than 1% above the most recently disclosed rate:

(

a) the new annual interest rate and the date on which it takes effect;

(

b) the amount of each instalment payment and the time when each payment is

due, for payments that are affected by the new annual interest rate.

Disclosure statement information—mortgage securing line of credit

(1) An initial disclosure statement for a mortgage that secures a line of credit or any

other open credit facility must include all of the following information:

(

a) the initial credit limit, if it is known at the time the disclosure is made;

(

b) the annual interest rate, or the method for determining it if it is variable;

(

c) the nature and amounts of any non-interest charges;

(

d) the minimum payment during each payment period or the method for

determining it;

(

e) each period a statement of account is to be provided;

(

f) the day on and after which interest accrues, and information concerning any

grace period that applies;

(

g) particulars of the charges or penalties to be imposed on the borrower if the

borrower fails to repay the amount of the mortgage at maturity or fails to

pay an instalment on the day the instalment is due to be paid, including

default charges that may be imposed under

Section 22;

(

h) identifying information about the property in which the mortgage lender

takes a security interest under the mortgage;

(

i) information about any optional service in relation to the mortgage that the

borrower accepts, the charges for each optional service and the conditions

under which the borrower may cancel the service, unless that information is

disclosed in a separate statement before the optional service is provided;

(

j) a local or toll-free telephone number, or a telephone number with a

prominent indication that collect calls are accepted, that the borrower may

use to get information about the account during the mortgage lender’s

regular business hours;

(

k) any charge for a mortgage brokerage, if the brokerage’s charges are included

in the amount borrowed and are paid directly by the mortgage lender to the

brokerage.

(2) If the initial credit limit is not known when the initial disclosure statement referred

to in subsection (1) is made, the mortgage lender must disclose it

(

a) in the first statement of account provided to the borrower; or

(

b) in a separate statement that the borrower receives on or before the date on

which the borrower receives the first statement of account.

(3) Except as provided in subsection (4), in addition to the initial disclosure statement

referred to in subsection (1), a mortgage lender must give a borrower a disclosure

statement at least once a month that contains all of the following information:

(

a) the period covered by the disclosure statement and the opening and closing

balances in the period;

(

b) an itemized statement of account that discloses each amount credited or

charged, including interest, and the dates when those amounts were posted

to the account;

(

c) the sum for payments and the sum for credit advances and interest and other

charges;

(

d) the annual interest rate that applied on each day in the period and the total of

interest charged at those rates in the period;

(

e) the credit limit and the amount of credit available at the end of the period;

(

f) the minimum payment and its due date;

(

g) the borrower’s rights and obligations regarding any billing error that may

appear in the statement of account;

(

h) a local or toll-free telephone number, or a telephone number with a

prominent indication that collect calls are accepted, that the borrower may

use to get information about the account during the mortgage lender’s

regular business hours.

(4) The additional disclosure statement described in subsection (3) is not required for a

period during which there are no advances or payments if either of the following

applies:

(

a) there is no outstanding balance at the end of the period;

(

b) the borrower has been given notice that the line of credit secured by the

mortgage is suspended or cancelled due to default and the mortgage lender

has demanded payment of the outstanding balance.

Information to be disclosed in credit card application

(1) Except as otherwise provided in this Section, a mortgage lender that issues a credit

card secured by a mortgage must specify all of the following information in the

credit card application form or in a document accompanying it, including the date

on which each of the matters mentioned takes effect:

(

a) for a credit card with a fixed rate of interest, the annual interest rate;

(

b) for a credit card with no fixed rate of interest, the fact that the variable

interest rate is determined by adding or subtracting a fixed percentage rate

of interest to or from a public index, a description of the public index and

the fixed percentage rate to be added or subtracted from it;

(

c) the day on and after which interest accrues, and information concerning any

grace period that applies;

(

d) the amount of any charges other than interest charges.

(2) Subsection (1) does not apply if the mortgage lender prominently discloses all of

the following on the credit card application form or in a document accompanying

it:

(

a) a local or toll-free telephone number, or a telephone number with a

prominent indication that collect calls are accepted, that the borrower may

use to get information otherwise required by subsection (1) during the

mortgage lender’s regular business hours;

(

b) the fact that the applicant may obtain the information otherwise required by

subsection (1) at the telephone number provided.

(3) For an individual who applies for a credit card by telephone or any electronic

means, the information required by clauses (1)(

a) and (

d) must be disclosed to the

applicant when the application is made.

(4) For a mortgage lender that solicits applications for credit cards secured by a

mortgage in person, by mail, by telephone or by any electronic means, the

information required by clauses (1)(

a) and (

d) must be disclosed at the time of the

solicitation.

Disclosure statement information—mortgage secured by credit card

(1) An initial disclosure statement for a mortgage secured by a credit card must

include all of the following information:

(

a) the information prescribed in subsection 15(1) for mortgages securing a line

of credit;

(

b) the manner in which interest is calculated and the information about the

interest rate prescribed in clause 16(1)(

a) or (b);

(

c) if the credit agreement requires the borrower to pay the outstanding balance

in full on receiving a statement of account,

(

i) a statement of that requirement,

(ii) the grace period by the end of which the borrower must have paid

that balance, and

(iii) the annual interest rate charged on any outstanding balance not paid

when due;

(

d) the fact that if a lost or stolen credit card is used in an unauthorized manner,

the maximum liability of the borrower is the lesser of the following:

(i) $50,

(ii) the maximum set by the credit agreement;

(

e) the fact that, despite clause (d), if an unauthorized transaction is entered into

at an automated teller machine by using the borrower’s personal

identification number, the borrower’s maximum liability is the liability

incurred by the transaction;

(

f) the fact that if the mortgage lender receives a written or verbal report from

the borrower of a lost or stolen credit card, the borrower is not liable for any

transaction entered into through the use of the card after the mortgage lender

receives the report.

(2) If the initial credit limit is not known when the initial disclosure statement is given,

it must be disclosed

(

a) in the first statement of account provided to the borrower; or

(

b) in a separate statement that the borrower receives on or before the date that

the borrower receives that first statement of account.

(3) Despite the disclosure requirements in

Section 18 for an amendment to a mortgage,

if a credit agreement for a credit card that secures a mortgage is amended, the

mortgage lender must give the borrower a written statement at least 30 days before

the amendment takes effect that sets out the changes to the information that was

included in the initial disclosure statement for the mortgage, except that

information is not required to be given about any of the following changes:

(

a) any change in the credit limit;

(

b) any extension of the grace period;

(

c) any decrease in charges other than interest charges and default charges

referred to in clauses 15(1)(

c) and (g);

(

d) any change concerning any optional service referred to in clause 15(1)(

i) in

relation to the credit agreement;

(

e) any change in a variable interest rate referred to in clause 16(1)(

b) as a result

of a change in the public index referred to in that clause.

(4) A change described in clauses (3)(

a) to (

d) must be disclosed in the first periodic

disclosure statement that is given to the borrower after the amendment to the credit

agreement is made.

(5) In addition to the initial disclosure statement referred to in subsection (1), a

mortgage lender that issues credit cards must give each borrower additional

disclosure statements on a regular periodic basis, at least once a month, that

contain all of the following information:

(

a) the information prescribed in subsections 15(3) and (4), other than clauses

15(3)(

b) and (c);

(

b) an itemized statement of account that describes each transaction and

discloses each amount credited or charged, including interest, and the dates

when those amounts were posted to the account;

(

c) the amount that the borrower must pay, on or before a specified due date, in

order to have the benefit of a grace period;

(

d) the sum for payments and the sum for purchases, credit advances and

interest and other charges.

(6) An itemized statement of account required by clause (5)(

b) is adequate if it permits

the borrower to verify each transaction described by linking it with a transaction

record provided to the borrower.

Disclosure statement—amendment to mortgage

(1) If a mortgage is amended by a subsequent agreement, the mortgage lender must

give the borrower a written statement no later than 30 days after the date the

borrower enters into the subsequent agreement that sets out the changes to the

information that was included in the initial disclosure statement for the mortgage.

(2) If a mortgage for a fixed amount has a

schedule for instalment payments and the

schedule is amended by a subsequent agreement, the mortgage lender must give

the borrower a written statement no later than 30 days after the borrower enters

into the subsequent agreement that sets out the new payment

schedule and any

increase in the total amount to be paid or the cost of borrowing.

Disclosure statement information—renewal of mortgage

(1) If a mortgage is to be renewed on a specified date, the mortgage lender must give

the borrower a subsequent disclosure statement at least 21 days before the specified

renewal date that contains the information required by the following:

(

a) Section 13, for a mortgage that is for a fixed interest rate;

(

b) Section 14, for a mortgage that is for a variable interest rate.

(2) A disclosure statement referred to in subsection (1) must specify all of the

following:

(

a) that the cost of borrowing will not be increased after the disclosure

statement is given to the borrower and before the mortgage is renewed;

(

b) that the borrower’s rights under the mortgage continue, and the renewal

does not take effect, until the date that is the later of the following:

(

i) the specified renewal date,

(ii) the 21st day after the borrower receives the statement.

(3) A mortgage lender that does not intend to renew a mortgage after its term ends

must notify the borrower of that intention at least 21 days before the end of the

term.

Disclosures when mortgage lender offers to waive payment

(1) A mortgage lender that offers to waive a payment under a mortgage for a fixed

amount without waiving the accrual of interest during the period covered by the

payment must disclose to the borrower in a prominent manner in the offer that

interest will continue to accrue during that period if the borrower accepts the offer.

(2) A mortgage lender that offers to waive a payment under a mortgage that secures a

line of credit or a credit card must disclose to the borrower in a prominent manner

in the offer whether interest will continue to accrue during any period covered by

the offer if the borrower accepts the offer.

Disclosure statement information—cancellation of optional services

(1) This

Section applies to a mortgage lender that provides optional services, including

insurance services, to a borrower on an ongoing basis in connection with the

mortgage.

(2) A disclosure statement in relation to a mortgage must specify all of the following:

(

a) that the borrower may cancel an optional service by notifying the mortgage

lender that the service is to be cancelled effective as of the earlier of the

following dates:

(i) 1 month after the date that the disclosure statement was provided to

the borrower,

(ii) the last date of the notice period provided for in the mortgage;

(

b) that the mortgage lender must, without delay, refund or credit the borrower

with the proportional amount, calculated in accordance with the formula set

out in subsection (3), of any charges for the service paid for by the borrower

and added to the balance of the mortgage loan, but unused as of the

cancellation date referred to in the notice.

(3) The proportion of charges to be refunded or credited to a borrower after an

optional service is cancelled are calculated using the following formula

R = A × ((n - m) ÷

n) in which

R = the amount to be refunded or credited

A = the amount of the charges

n = the period between the imposition of the charge and the time when the

services were, before the cancellation, scheduled to end

m = the period between the imposition of the charge and the cancellation.

Default Charges

Default charges to recover costs

22 If a borrower fails to make a payment when it becomes due or fails to comply with an

obligation under the mortgage, in addition to interest, the mortgage lender may impose

charges for the sole purpose of recovering any of the following costs that are reasonably

incurred:

(

a) the cost of legal services required to collect or attempt to collect the

payment;

(

b) expenses incurred to realize on a security interest taken under the mortgage

or to protect such a security interest, including the cost of legal services

required for that purpose;

(

c) expenses incurred to process a cheque or other payment instrument that the

borrower used to make a payment under the mortgage but that was

dishonoured.

Advertising

Advertising—mortgage for a fixed amount

23 An advertisement of a mortgage for a fixed amount must meet all of the following

requirements if it includes a representation about the interest rate or the amount of any

payment or of any charge other than interest:

(

a) the advertisement must also include the APR and the term of the mortgage;

(

b) the APR must be provided at least as prominently as the representation and

in the same manner as the representation, whether visually or aurally, or

both;

(

c) if the APR or the term of the mortgage is not the same for all mortgages to

which the advertisement relates, the advertisement must be based on an

example of a mortgage that fairly depicts all those mortgages and is

identified as a representative example of them.

Advertising—line of credit

24 An advertisement of a mortgage that secures a line of credit must meet all of the

following requirements if it includes a representation about the annual interest rate or the

amount of any payment or of any charge other than interest:

(

a) the advertisement must also include the annual rate of interest on the date of

the advertisement and any initial or periodic charges other than interest;

(

b) the information required by clause (

a) must be provided at least as

prominently as the representation and in the same manner as the

representation, whether visually or aurally, or both.

Advertising—interest-free periods

25 An advertisement of a mortgage must meet all of the following requirements if it

includes a representation, express or implied, that a period of the mortgage is free of any

interest charges:

(

a) the advertisement must indicate whether interest accrues during the period

and is payable after the period;

(

b) the information required by clause (

a) must be provided at least as

prominently as the representation, if it was express, or in a prominent

manner, if it was implied;

(

c) if interest does not accrue during the period, the advertisement must also

disclose any conditions that apply to the forgiving of the accrued interest

and the APR, or the annual interest rate in the case of a mortgage that

secures a credit card or line of credit, for a period when those conditions are

not met.

Purchasing Insurance

Disclosure of information if borrower required to purchase insurance

(1) A mortgage lender that requires a borrower to purchase insurance and offers to

provide or arrange the insurance must at the same time clearly disclose to the

borrower in writing that the borrower may purchase the required insurance through

any insurer who may lawfully provide that type of insurance.

(2) A mortgage lender may reserve the right to disapprove on reasonable grounds an

insurer selected by the borrower, and if that is the case, the disclosure required by

subsection (1) must state that the mortgage lender reserves that right to disapprove.

Legislative History

Reference Tables

Cost of Borrowing Disclosure Regulations

N.S. Reg.

125/2020

Mortgage Regulation Act

Note: The

information in these tables does not form part of the regulations and is

compiled by the Office of the Registrar of Regulations for reference only.

Source Law

The current consolidation of the Cost of Borrowing Disclosure Regulations made

under the Mortgage Regulation Act includes all of the following regulations:

N.S.

Regulation

In force

date*

How in force

Royal Gazette

Part II Issue

125/2020

Nov 1, 2021

date specified (date that Act comes

into force on proclamation)

Oct 9, 2020

The following regulations are not yet in force and

are not included in the current consolidation:

N.S.

Regulation

In force

date*

How in force

Royal Gazette

Part II Issue

*See subsection 3(6) of the Regulations Act for

rules about in force dates of regulations.

Amendments by Provision

ad. = added

am. = amended

fc. = fee change

ra. = reassigned

rep. = repealed

rs . = repealed and substituted

Provision affected

How affected

..........................................................

Note that changes to headings are not

included in the above table.

Editorial Notes and Corrections

Note

Effective

date

Original

text does not include any other subsections in

Section 25. Subsection 25(1) redesignated as

Section 25 for the purposes of this

consolidation.

Nov 1, 2021

Repealed and Superseded

N.S.

Regulation

Title

In force

date

Repealed

date

Note: Only

regulations that are specifically repealed and replaced appear in this

table. It may not reflect the entire

history of regulations on this subject matter.