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Part II .

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General Disclosure Regulations

made under

Section 90 of the

Mortgage Regulation Act

S.N.S. 2012, c. 11

N.S. Reg. 124/2020 (effective November 1, 2021)

amended to N.S. Reg. 215/2022 (effective November 1, 2022)

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 .

Citation

Definitions

General Disclosure Requirements

Written disclosure

Disclosure based on estimate or assumption

Clarity of disclosure, acknowledgment, consent

Disclosures by Mortgage Brokerages to Borrowers

Application of Sections 7 to 10

Prescribed contents, timing and manner of disclosure

Criteria for determining most suitable mortgage loan

Recommendation and assessment

Ensuring initial cost of borrowing disclosure

Disclosures by Mortgage Lenders or Mortgage Brokerages to Private Investors

Application of Sections 12 to 14

Disclosure to private investor about mortgage

Disclosure to private investor with respect to mortgage renewal

Deadlines for Disclosures to Investors

Deadline for disclosure by mortgage lender or mortgage brokerage

Deadline for disclosure by mortgage administrator

Citation

1 These regulations may be cited as the General Disclosure Regulations .

Definitions

2 In these regulations,

“Act” means the Mortgage Regulation Act ;

“disclosure” means a disclosure of information required to be provided or

disclosed under the Act or its regulations;

“Form 1—Mortgage Brokerage Disclosure” means Form 1—Mortgage Brokerage

Disclosure as prescribed in the Forms Regulations made under the Act;

“Form 2—Mortgage Brokerage Recommendation and Assessment” means Form

2—Mortgage Brokerage Recommendation and Assessment as prescribed in the

Forms Regulations made under the Act;

“Form 4—Investor Disclosure Statement” means Form 4—Investor Disclosure

Statement as prescribed in the Forms Regulations made under the Act;

“Form 5—Investor Renewal Disclosure” means Form 5—Investor Renewal

Disclosure as prescribed in the Forms Regulations made under the Act.

General Disclosure Requirements

Written disclosure

(1) Every disclosure must be in writing.

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

disclosures in electronic form, the disclosures referred to in Sections 7 and 9 may

be provided to and returned by the borrower in an electronic form that the

borrower can retrieve and retain.

(3) If a private investor consents in writing, in paper or electronic form, the disclosures

required by Sections 12 and 13 may be provided to and returned by the private

investor in an electronic form that the private investor can retrieve and retain.

Disclosure based on estimate or assumption

(1) A disclosure may be an estimate or may be based on an assumption if, when the

disclosure is made,

(

a) the actual information to be disclosed cannot be known; and

(

b) the estimate or assumption is reasonable.

(2) If a disclosure is an estimate or is based on an assumption, the disclosure must

include a statement to that effect.

Clarity of disclosure, acknowledgment, consent

5 Every disclosure, consent or acknowledgment required by the Act or its regulations must

(

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

(

b) presented in a manner that is logical and is likely to bring to the attention of

the borrower, lender or investor the information that is required to be

conveyed.

Disclosures by Mortgage Brokerages to Borrowers

Application of Sections 7 to 10

6 Sections 7 to 10 apply to every mortgage brokerage that is required by

Section 31 of the

Act to act in the best interests of a borrower.

Prescribed contents, timing and manner of disclosure

(1) For the purposes of clause 32(1)(

a) of the Act,

(

a) the information contained in Form 1—Mortgage Brokerage Disclosure is

prescribed as the information that a mortgage brokerage is required to

provide to a borrower; and

(

b) a completed Form 1—Mortgage Brokerage Disclosure must be provided to

a borrower before the mortgage brokerage provides any services to the

borrower.

(2) Before providing any services to a borrower, a mortgage brokerage must receive

and retain a copy of the Form 1—Mortgage Brokerage Disclosure that is signed

and dated by the borrower.

Criteria for determining most suitable mortgage loan

8 The assessment criteria set out under the heading “Assessment Criteria” in Form

2—Mortgage Brokerage Recommendation and Assessment are prescribed as the criteria

that a mortgage brokerage is required by clause 32(1)(

b) of the Act to use in determining

a suitable mortgage loan for a borrower.

Recommendation and assessment

9 The information set out in Form 2—Mortgage Brokerage Recommendation and

Assessment is prescribed as the information that is required by clause 32(1)(

c) of the Act

to be contained in a written assessment of the determination of a suitable mortgage that

must be provided by a mortgage brokerage to a borrower.

Ensuring initial cost of borrowing disclosure

10 A mortgage brokerage must ensure that an initial disclosure statement of the cost of

borrowing to be provided to a borrower by a mortgage lender in accordance with the

Cost of Borrowing Regulations made under the Act has been provided to a borrower by

or on behalf of the borrower’s mortgage lender within the time period prescribed in those

regulations.

Disclosures by Mortgage Lenders or Mortgage Brokerages to Private Investors

Application of Sections 12 to 14

11 Sections 12 to 14 apply to every mortgage lender dealing with a private investor and

every mortgage brokerage that is required by

Section 33 of the Act to act in the best

interests of a private investor.

Disclosure to private investor about mortgage

(1) A mortgage lender or mortgage brokerage must provide each private investor with

all of the following information and documents for any investment in a mortgage

that the mortgage lender or mortgage brokerage presents for the consideration of

the private investor:

(

a) a completed Form 4—Investor Disclosure Statement signed by 1 of the

following:

(

i) an authorized representative of the mortgage lender,

(ii) a mortgage broker authorized by the mortgage brokerage;

(

b) for an investment in an existing mortgage, a copy of the mortgage;

(

c) a copy of any appraisal of the property completed in the previous 12 months

and available to the mortgage lender or mortgage brokerage;

(

d) if an appraisal of the property as described in clause (

c) is not available,

documentary evidence of the value of the property other than an agreement

of purchase and sale;

(

e) a copy of any agreement of purchase and sale for the property entered into

in the previous 12 months and available to the mortgage lender or mortgage

brokerage, together with copies of all related schedules, amendments and

waivers;

(

f) documentary evidence of the borrower’s ability to meet the mortgage

payments;

(

g) a copy of the borrower’s application for the mortgage and of any document

submitted in support of the application;

(

h) for a new mortgage, documentary evidence of any down payment made by

the borrower for the purchase of the property;

(

i) a copy of any agreement that the private investor may be asked to enter into

with the mortgage lender or mortgage brokerage;

(

j) for an investment in an existing mortgage, a certificate of insurance or other

documentary evidence confirming the insurance coverage for the property;

(

k) all additional information that an investor of ordinary prudence would

consider to be material to a decision about whether to lend money on the

security of the property or to invest in the mortgage.

(2) A mortgage lender or mortgage brokerage must obtain the private investor’s

written acknowledgment that the mortgage lender or mortgage brokerage has

disclosed the information and documents required by this Section.

Disclosure to private investor with respect to mortgage renewal

(1) A mortgage lender or mortgage brokerage must provide each private investor with

all of the following information and documents for any renewal of a mortgage that

the mortgage lender or mortgage brokerage presents for the consideration of the

private investor:

(

a) a completed Form 5—Investor Renewal Disclosure, signed by 1 of the

following:

(

i) an authorized representative of the mortgage lender, or

(ii) a mortgage broker authorized by the mortgage brokerage;

(

b) a copy of any appraisal of the property completed in the previous 12 months

and available to the mortgage lender or mortgage brokerage;

(

c) a copy of any agreement of purchase and sale for the property entered into

in the previous 12 months and available to the mortgage lender or mortgage

brokerage, together with copies of all related schedules, amendments and

waivers;

(

d) a certificate of insurance or other documentary evidence confirming the

insurance coverage on the property;

(

e) all additional information that an investor of ordinary prudence would

consider to be material to a decision about whether to renew the mortgage.

(2) A mortgage lender or mortgage brokerage must obtain the private investor’s

written acknowledgment that the mortgage lender or mortgage brokerage has

disclosed the information and documents required by this Section.

Deadlines for Disclosures to Investors

Deadline for disclosure by mortgage lender or mortgage brokerage

(1) Except as provided in subsection (2), a disclosure of information required by the

Act or its regulations to be made by a mortgage lender or a mortgage brokerage to

an investor must be made at least 2 business days before the earliest of the

following events:

(

a) the mortgage lender or mortgage brokerage receives money from the

investor;

(

b) the mortgage lender or mortgage brokerage enters into an agreement to

receive money from the investor;

(

c) the mortgage lender enters into an agreement to enter into the mortgage or

the investor enters into an agreement to purchase, exchange or sell the

mortgage;

(

d) the money is advanced to the borrower under the mortgage;

(

e) the investment completion date.

(2) If an investor consents in writing, in paper or electronic form, to receiving a

disclosure after the deadline set out in subsection (1), the disclosure may instead be

made

(

a) no later than 1 business day before the earliest of the events set out in

subsection (1); or

(

b) if the investor has received legal advice, at any time before the earliest of the

events set out in subsection (1).

Deadline for disclosure by mortgage administrator

(1) Except as provided in subsection (2), a disclosure of information required by the

Act or its regulations to be made by a mortgage administrator to an investor must

be made at least 2 business days before the mortgage administrator and the investor

enter into a mortgage administration agreement for the mortgage.

(2) If an investor consents in writing, in paper or electronic form, to receiving a

disclosure about a mortgage after the deadline set out in subsection (1), the

disclosure may instead be made

(

a) no later than 1 business day before the mortgage administrator and the

investor enter into a mortgage administration agreement for the mortgage;

(

b) if the investor has received legal advice, at any time before the mortgage

administrator and the investor enter into a mortgage administration

agreement for the mortgage.

Legislative History

Reference Tables

General Disclosure Regulations

N.S. Reg.

124/2020

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 General 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

124/2020

Nov 1, 2021

date

specified (date that Act comes into force on proclamation)

Oct 9, 2020

215/2022

Nov 1, 2022

date specified

Oct 7, 2022

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

14(2)(b) .............................................

am. 215/2022

15(2)(b) .............................................

am. 215/2022

Note that changes to headings are not

included in the above table.

Editorial Notes and Corrections

Note

Effective

date

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.