ADDITIONAL PROVISIONS FOR
MCAP Fusion Mortgage (Home Account Line of Credit and Fixed Rate Mortgage)
1. EFFECT ON STANDARD TERMS:
These Additional Provisions form part of the Registered Mortgage. In the event of any inconsistency or conflict between these Additional Provisions, the Loan Agreement, the Registered Mortgage and the Standard Charge/ Mortgage Terms, the provisions of these documents shall apply in the following order of precedence to resolve the inconsistency or conflict: (i) the Loan Agreement; (ii) the Additional Provisions; (iii) the Registered Mortgage; and (iv) the Standard Charge/Mortgage Terms.
For purposes of your Mortgage, the following terms under the Standard Charge/ Mortgage Terms shall have the meanings set out below and these definitions shall apply and replace those set out in the Standard Charge/ Mortgage Terms:
a) “Balance Due Date” shall refer to and apply to the Line of Credit and is the date you must repay in full the
outstanding balance of your Loan under the Line of Credit;
b) “Compound Interest” shall refer to and apply to amounts owing under both the Line of Credit and the Fixed
Rate Mortgage;
c) “Interest Rate” shall refer to the rates of interest calculated and charged under both the Line of Credit (the “Line
of Credit Interest Rate”) and the Fixed Rate Mortgage (the “Fixed Rate Mortgage Interest Rate”) and the
applicable interest rates may differ;
d) “Interest Adjustment Date” shall refer to and apply to the Line of Credit (the “Line of Credit Interest Adjustment
Date”) and the Fixed Rate Mortgage (the “Fixed Rate Mortgage Interest Adjustment Date”) and the applicable
dates may differ;
e) “Line of Credit Balance” shall refer to the Line of Credit and the amount outstanding under the Line of Credit
(which may fluctuate from time to time);
f) “Loan” shall refer to both the Line of Credit and the Fixed Rate Mortgage and the amounts outstanding under
each of the Line of Credit and the Fixed Rate Mortgage from time to time (and "Loan Amount" shall be
construed accordingly);
g) “Maturity Date” shall refer to and apply to the Fixed Rate Mortgage and is the date on which you must repay in
full the outstanding balance of your Fixed Rate Mortgage (unless you are offered a Renewal Agreement) and is
the last day of your Fixed Rate Mortgage Term. The Maturity Date shall occur prior to the Balance Due Date for
your Line of Credit;
h) “Maximum Loan Limit” shall refer to the maximum amount of money you can borrow at any point in time under
your Line of Credit and the Fixed Rate Mortgage as set out in the Loan Agreement. This amount may change
from time to time;
i) “Mortgage” includes:
i. The Registered Mortgage with any Additional Provisions;
ii. The Standard Charge/ Mortgage Terms;
iii. The Commitment Letter or Loan Agreement;
iv. Any amendments to the Registered Mortgage or the Commitment Letter or Loan Agreement; and
v. Any agreement by which a Guarantor, Covenantor or other person is bound by all or any part of the
Registered Mortgage, Commitment Letter or Loan Agreement;
j) “Outstanding Loan Amount” will vary from time to time and consists of all amounts you owe us from time to
time under your Line of Credit (including present and future advances under your Line of Credit) and your Fixed
Rate Mortgage, including: (i) the Line of Credit Balance and Principal Amount for the Fixed Rate Mortgage; (ii)
unpaid principal or interest under both the Line of Credit and Fixed Rate Mortgage; (iii) Compound Interest
under the Line of Credit and Fixed Rate Mortgage; (iv) Costs and interests on those Costs; and (v) all other
amounts payable under the Loan. In addition to the above, the Outstanding Loan Amount also consists of
amounts owing under any other product offered by us in a written amendment to the Loan Agreement;
k) “Principal or Principal Amount” shall refer to the Principal Amount owing under the Fixed Rate Mortgage;
l) “Registered Mortgage” means the form of charge or Mortgage which you sign and is the part of the Mortgage
that is or will be registered against the title to the Property or, where the Property is under the electronic
registration system, will be signed and registered electronically against title to the Property;
m) “Regularly Scheduled Payment” shall refer to and apply to the amount of each payment that will be paid on a
consistent frequency (i.e. monthly) under the Line of Credit (the “Line of Credit Regularly Scheduled Payment”)
and (i.e. weekly, bi-weekly, semi-monthly or monthly) under the Fixed Rate Mortgage (the “Fixed Rate
Mortgage Regularly Scheduled Payment”). For greater certainty, the consistent frequency may differ as
between the Line of Credit and Fixed Rate Mortgage;
n) “Standard Charge/ Mortgage Terms” means the set of Standard Charge Terms, Standard Mortgage Terms or
Additional Covenants that are incorporated into the Mortgage by reference to their filing number or by
attachment to the Registered Mortgage; and
o) “Term” shall refer to and apply to the Line of Credit and the Fixed Rate Mortgage as applicable.
2. CAPITALIZED TERMS:
All capitalized terms used but not otherwise defined in these Additional Provisions have the respective meanings ascribed to such terms in the Standard Charge/ Mortgage Terms.
3. OUTSTANDING LOAN AMOUNT:
The Outstanding Loan Amount of your Loan will vary from time to time and consists of all amounts you owe us from time to time under your Line of Credit (including present and future advances under your Line of Credit) and your Fixed Rate Mortgage. The amount of the Registered Mortgage will be calculated as the total of 100% of the appraised value of the Property, as such amount is determined by us.
4. INTEREST RATE:
Interest for the Loan will be chargeable under the Line of Credit and the Fixed Rate Mortgage. We will charge you interest at the Line of Credit Interest Rate (based on the Line of Credit Balance) from the Advance Date to the Line of Credit Interest Adjustment Date. We will also charge interest at the Fixed Rate Mortgage Interest Rate (based on the Principal Amount) from the Advance Date to the Fixed Rate Mortgage Interest Adjustment Date.
From the applicable Interest Adjustment Date forward, the Line of Credit Interest Rate and Fixed Rate Mortgage Interest Rate shall be calculated as follows:
Line of Credit Interest Rate: Starting on the Line of Credit Interest Adjustment Date, interest at the Line of Credit Interest Rate is calculated daily and is compounded monthly, not in advance. For this purpose, we calculate interest for each payment period using a factor that is based on the Line of Credit Interest Rate, compounded monthly. Interest is payable monthly on the unpaid balance of the Line of Credit. The unpaid balance is calculated daily by adding new advances and subtracting payments from the unpaid balance of the previous month. For each day during a monthly period for which the unpaid balance remains unchanged, interest is then calculated by multiplying the unpaid balance by the Line of Credit Interest Rate compounded monthly, dividing by 365, and multiplying by the number of days in the applicable period. The amounts from this calculation are then added together to create a total that is the interest payable for the monthly period. You promise to pay interest at the Line of Credit Interest Rate in effect at the time and as calculated above, on the Line of Credit Balance until paid in full.
For your Line of Credit Interest Rate, you will be charged MCAP Prime Rate and any applicable premium (or discount) to the MCAP Prime Rate as set out in the Loan Agreement. Thereafter, the Line of Credit Interest Rate will change each time the MCAP Prime Rate changes, with no prior notice to you. Your Line of Credit Regularly Scheduled Payment will also change accordingly.
Fixed Rate Mortgage Interest Rate: Starting on the Fixed Rate Mortgage Interest Adjustment Date, interest at the Fixed Rate Mortgage Interest Rate is compounded semi-annually, not in advance. For this purpose, we calculate interest for each payment period using a factor that is based on the Fixed Rate Mortgage Interest Rate, compounded semi-annually. Interest is payable on the payment frequency selected by you (for example monthly). You promise to pay interest at the Fixed Rate Mortgage Interest Rate in effect at the time and as calculated above, on the outstanding balance of your Fixed Rate Mortgage until paid in full.
Compound Interest - If you do not pay interest under the Line of Credit or Fixed Rate Mortgage when it is due, we will add the overdue interest to the outstanding balance of the Line of Credit or Fixed Rate Mortgage as applicable, and charge you interest on the combined amount until it is paid. This is called Compound Interest. We calculate Compound Interest at the current, applicable Interest Rate in effect at the time. You promise to pay Compound Interest at the same frequency as the applicable Regularly Scheduled Payments until the outstanding balance of the Loan, and any unpaid interest, is paid in full.
Interest at the Interest Rate applicable to your Line of Credit and Fixed Rate Mortgage will accrue and will be compounded in the same manner and is payable whether before or after default as well as prior to and after the Balance Due Date or Maturity Date on any Outstanding Loan Amounts from time to time. Interest whether before or after default as well as prior to and after the Balance Due Date or Maturity Date will accrue at the same rate as during the applicable Terms for your Line of Credit and Fixed Rate Mortgage.
5. REGULARLY SCHEDULED PAYMENTS:
There are regularly scheduled payments under your Line of Credit and your Fixed Rate Mortgage and they are calculated as follows:
Line of Credit Regularly Scheduled Payment: Your minimum Line of Credit Regularly Scheduled Payment amount is equal to the accrued interest on your Line of Credit Balance. It is calculated on the daily closing balance of your Line of Credit and is payable monthly.
Fixed Rate Mortgage Regularly Scheduled Payment: Refer to the Payment Provisions in the Registered Mortgage.
Any prepayments made by you will not affect your Fixed Rate Mortgage Regularly Scheduled Payment but will shorten your Amortization Period for the Fixed Rate Mortgage and will change the composition of interest and Principal in your Fixed Rate Mortgage Regularly Scheduled Payments.
Provided you are not in default under your Mortgage, amounts received by us from you for your Line of Credit Regularly Scheduled Payment and your Fixed Rate Mortgage Regularly Scheduled Payment will be applied as follows: From the Line of Credit Regularly Scheduled Payment:
1) If applicable, mortgage life and/or critical illness insurance premiums and associated taxes and premiums or
payments for any other optional products or services you have chosen;
2) Property Taxes (if we pay them on your behalf);
3) Accrued interest on your Line of Credit; and
4) Any other Costs outstanding.
From the Fixed Rate Mortgage Regularly Scheduled Payment:
1) If applicable, mortgage life and/or critical illness insurance premiums and associated taxes and premiums or
payments for any other optional products or services you have chosen to the extent not paid or payable under
the Line of Credit Regularly Scheduled Payment;
2) Property Taxes (if we pay them on your behalf and to the extent not paid or payable under the Line of Credit
Regularly Scheduled Payment);
3) Interest that is due and payable ;
4) Reduction of the outstanding Principal owing in accordance with your amortization schedule;
5) Any other Costs outstanding not paid under the Line of Credit Regularly Scheduled Payment.
6. PREPAYMENT PROVISIONS:
Different prepayment provisions are applicable to the Line of Credit and Fixed Rate Mortgage components of your Loan and are as follows:
Line of Credit: You may prepay any portion of the outstanding balance of the Line of Credit Balance at any time, with no penalty. Fixed Rate Mortgage: The following Prepayment Provisions are available to you each year of the Term of the Fixed Rate Mortgage (i.e., during the 12 month period starting from the Fixed Rate Mortgage Interest Adjustment Date, and starting from each anniversary of the Fixed Rate Mortgage Interest Adjustment Date thereafter), provided you are not in default:
a) Increased Payment: Once per year, you may increase the amount of the Fixed Rate Mortgage Regularly
Scheduled Payment up to a maximum of 20%. The maximum for each payment increase is calculated using the
amount of the current Fixed Rate Mortgage Regularly Scheduled Payment in effect at the time.
b) Lump Sum Payment: You may make lump sum prepayments on your Fixed Rate Mortgage of $100 or more on
any Fixed Rate Mortgage Regularly Scheduled Payment date, provided the total of these prepayments made
throughout the year does not exceed 20% of the original Principal Amount of the Fixed Rate Mortgage.
If all or any portion of these privileges are not used in a particular year, they cannot be carried forward and used in a future year.
7. EARLY PAYOUT PROVISIONS:
Different payout provisions are applicable to the Line of Credit and Fixed Rate Mortgage and are as follows: