Financial Consumer Protection Framework Regulations (SOR/2021-181)

Marginal note:Information box — fixed interest loan for fixed amount

38 For the purposes of subsection 627.57(1) of the Act, the following information is prescribed information in relation to a fixed interest loan for a fixed amount that is to be repaid on a fixed future date or by instalment payments:

• (a) the principal of the loan;

• (b) the applicable annual interest rate and a brief description of how the interest is compounded, if applicable, and charged;

• (c) the APR, if it differs from the annual interest rate, and a brief description of how it is determined;

• (d) the number of months or years of the term of the loan and whether the term is open or closed, and a brief explanation of what “open” or “closed,” as applicable, means;

• (e) the date on which the principal of the loan is to be advanced and the date on which interest is to begin to be charged;

• (f) the amount of each payment, the date on which each payment is due, a brief description of the components of a payment and the frequency of the payments;

• (g) the number of months or years of the amortization period, if that period is different from the term of the loan;

• (h) a brief description of the conditions under which a person may repay a greater portion of the loan than required in any given period without incurring penalty charges for the prepayment of the loan, if applicable;

• (i) the amount of the penalty charges, if any, for prepayment of the loan and a brief explanation of the manner in which the penalty charges are calculated;

• (j) the amount of charges for insurance against default on a high-ratio mortgage on real property, if any; and

• (k) a list of the types and amounts of any other charges, other than interest charges.