Bill C-380
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SUMMARY |
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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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The enactment also sets a deadline of April 1, 1998 for the Governor
in Council to bring into force certain amendments to the Bank Act and
the Trust and Loan Companies Act that were passed by Parliament last
year and are not yet in force. These amendments relate to disclosure of
certain matters relating to loan terms and service charges, etc. for
consumer protection.
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