• 10. (1) On or before the day on which a loan is made, the lender and borrower must sign a document that sets out the principal amount of the loan, the rate of interest payable in respect of the loan, the repayment terms, the frequency of payments of principal and interest and the day on which the first payment of principal and interest is due.

• (2) The lender and the borrower may, at any time, agree to amend the terms of the loan or, at the end of a loan term, to renew the loan, to an aggregate maximum term of 10 years, beginning on the day on which the first payment of principal and interest is due.

• (3) On or before the day on which a loan is renewed or its terms are amended, the lender and borrower must sign a document that sets out the terms of the renewal or amendment.

• (4) For greater certainty, the terms described in subsections (1) and (3) may be set out in more than one document, as long as each document is signed by the lender and the borrower.

• (5) The repayment terms must provide that

  • (a) the loan is payable by instalments;

  • (b) at least one instalment of principal and interest is payable annually; and

  • (c) the first instalment of principal and interest is payable no later than one year after the day on which the loan is made.

11. [Repealed, SOR/2009-102, s. 11]

12. The maximum annual rate of interest payable in respect of a loan on the day on which the loan is made or renewed or on which the loan term is amended, or on which a document is signed that sets out the terms of the loan that is made or renewed or that sets out the amended loan term, must not exceed

• (a) in the case of a floating rate loan, the aggregate of 3% and the prime lending rate that is in effect at that lender on each day of the loan term, beginning on the day on which the loan is made; and

• (b) in the case of a fixed rate loan, the aggregate of 3% and

  • (i) the single family residential mortgage or hypothec rate in effect at that lender for the loan term, or

  • (ii) in the case of a loan term of more than five years if there is no single family residential mortgage or hypothec rate for that loan term, the five-year single family residential mortgage or hypothec rate.

• 13. (1) A lender may require the borrower to pay to the lender, in addition to the registration fee referred to in section 11 of the Act,

  • (a) any charge that would be charged by the lender for taking security in respect of a conventional loan of the same amount;

  • (b) any premium under a life or disability insurance policy that provides that a benefit is or may become payable to the lender, if the lender pays the premium under the loan agreement; and

  • (c) any charge for the conversion of a conventional fixed rate loan to a conventional floating rate loan of the same amount, or a conventional floating rate loan to a conventional fixed rate loan of the same amount, or any charge for the prepayment of all or part of a loan that would be charged by the lender in respect of a conventional loan of the same amount.

• (2) If a charge referred to in paragraph (1)(a) or a premium referred to in paragraph (1)(b) is expressed as a percentage of the outstanding amount of the loan, the charge or premium must not be combined with the rate of interest payable in respect of the loan unless the percentage that is attributable to the charge or premium is clearly set out in the loan agreement.

• (3) [Repealed, SOR/2009-102, s. 13]