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The purpose of this enactment is to ensure the right to redeem a
mortgage by payment of no more than three months interest penalty, or
the percentage of the principal outstanding that has been previously
agreed on by the parties, even if the term of the mortgage is less than 5
years. The Interest Act presently gives a right to redeem only for three
months interest and only for mortgages for a term exceeding five years.
During the first three and the last three months of the life of the
mortgage, the mortgagor will be able to redeem without payment of any
penalty.
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