Standard
charge terms are associated with
your mortgage, and are terms that
must be included in every mortgage
document.
The following set of standard charge
terms are deemed to be included in
every Charge/Mortgage of Land in
which this set of standard charge
terms is referred to by its filing
number, as referred to in Section 9
of the
Land Registration Reform Act.
This document sets out important
terms which apply to the Mortgage
and are actually part of the
Mortgage,
you can download this document in
full;
Bellow, is a
list of most important standard
charge terms (taken from RBC Royal
Bank), you can download the full PDF
file by clicking on the above links.
Standard
charge terms,
describe the financial
institution (mortgagee), who
is lending you the money, as
‘We’.The definition of
“we” also includes “us” and
“our”.
Standard charge terms
describe the person who is
being loaned money and
giving the Mortgage on your
Property as ‘You’.The definition of
“you” also includes “your”.‘You’ also includes
anyone who guarantees your
payments and Promises.
We are lending you money and
we protect our interests
through the Mortgage on your
Property, which gives us
certain rights, if you do
not do what you promise to
do.The specific terms
that apply to your Mortgage
(for example, the interest
rate) are set out in a
document that you sign and
is registered, or which is
authorized by you, prepared
in electronic format and
registered electronically.We call this the
Registered Mortgage.
In
return for our agreeing to
lend the Principal Amount or
as much of the Principal
Amount as we advance to you,
you mortgage and charge your
interest in your Property to
us.This means the
Mortgage is a charge on your
Property and you have
mortgaged your entire
interest in your Property to
us.All amounts relating
to the Mortgage that you owe
to us are secured by the
Mortgage.
HOW THE MORTGAGE
WORKS
It also means that you
release your claims to
your Property until you
have repaid the
Outstanding Amount and
kept all your Promises.
You can stay in
possession of your
Property, as long as you
keep your Promises.
Our interest in your
Property ends when you
have repaid the
Outstanding Amount and
you have kept all of
your other Promises, and
at that time, you can
have a discharge of the
Mortgage. Section 23
tells you what you must
do to get a discharge.
In return for our
agreeing to lend the
Principal Amount to you,
you make certain
Promises which you must
keep.Not keeping your
Promises includes
breaking or not keeping
your Promises in any
way.
You promise to sign any
additional documents
that we ask for and do
everything else we ask
you to do to protect our
interest in your
Property.
INTEREST
The
Interest Rate you
promise to pay is set
out in the Registered
Mortgage.The Interest Rate
is an annual rate that
is calculated
semi-annually, not in
advance.Using a
semi-annual calculation
of interest the first
semi-annual calculation
of interest after the
Interest Adjustment Date
will be for the
six-month period
starting with the
Interest Adjustment
Date.That calculation
will be made six months
after the Interest
Adjustment Date.Semi-annual
calculations of interest
will be made every six
months after that.
We calculate interest
for each payment period
using an interest rate
factor that is
equivalent to the
Interest Rate. Interest
is payable at the
payment frequency set
out in the Registered
Mortgage unless you
select another payment
frequency.
You promise to pay
interest on the
Outstanding Amount at
the Interest Rate both
before and after the
Balance Due Date,
Default and judgment,
until the Outstanding
Amount has been paid in
full.
If you do not pay any
interest when due under
the Mortgage, we will
add the overdue interest
to the Outstanding
Amount and charge you
interest on the combined
amount until it is paid.This is called
compound interest.We calculate
compound interest at the
Interest Rate.You promise to
pay it at the same
frequency as your
regular payments, both
before and after the
Balance Due Date,
Default and judgment,
until the Outstanding
Amount is paid in full.
We
will also charge you
interest on compound
interest at the Interest
Rate both before and
after the Balance Due
Date, Default and
judgment, until the
Outstanding Amount is
paid in full.All overdue
interest and compound
interest is part of the
Outstanding Amount.You promise to
pay this interest
immediately when we ask
you to pay it.
YOUR REGULAR
PAYMENTS
You promise to repay the
Principal Amount and
interest to us on the
payment dates set in the
Registered Mortgage or
another payment frequency
that you select starting
with the First Payment Date
until and including the Last
Payment Date.Your payments will be
for the amounts set out in
the Registered Mortgage.You promise to pay
the Outstanding Amount on
the Balance Due Date.You can ask us to
change your payment date or
payment frequency at any
time.
If you are not in
Default, we apply your
payment as follows;
to pay your
HomeProtector
Insurance Premium,
including any applicable
sales taxes or similar
taxes, if you have it;
to pay Property Taxes,
if we pay them on your
behalf;
to pay interest due and
payable; and
to reduce the Principal
Amount, unless you have
an Interest Only
Mortgage in which case
your payments never
reduce the Principal
Amount.
If you do not keep your
Promises, we may apply
your payment, or any
other money we receive
from you, as we choose.
If we advance all or
part of the Principal
Amount before the
Interest Adjustment
Date, you promise to pay
accrued interest on the
money we advance at the
Interest Rate from the
day we lend you the
money until the Interest
Adjustment Date.You promise to
pay this interest on the
first day of each month
until the Interest
Adjustment Date.If your Interest
Adjustment Date is not
the first day of a
month, you also promise
to pay us interest from
the first of the month
until the Interest
Adjustment Date.
PREPAYING A MORTGAGE
BEFORE MATURITY DATE
Restriction:
None of the following
Prepayment options apply
if you are in Default.
If the Mortgage is a
Closed Mortgage you may,
once in each twelve
month period starting on
the Interest Adjustment
Date or the anniversary
of that date, pay up to
10% of the Principal
Amount.
You may once in each
twelve-month period,
starting on the Interest
Adjustment Date, or the
anniversary of that
date, increase your
payment by an amount
that is not more than
10% of the principal and
interest portion of what
is or would be your
monthly payment amount.This option does
not apply if you have an
Interest Only Mortgage.
If you do not exercise
this option in any
twelve-month period, you
cannot carry it over to
any future twelve-month
period.
Double-Up
Option
You
may increase your regular
payment by an amount up to
100% of the principal and
interest portions of your
regular payment (but not
less than $100) on any
payment date.This is called a “Double-Up”.If you have a
non-monthly payment
frequency, the total amount
of your
Double-Up payments in
any one calendar month
cannot be more than the
amount of principal and
interest portions of what
would be your monthly
payment.If you do not
Double-Up, you may not save
this option to be used on a
later payment date.You cannot
Double-Up if you have an
Interest Only Mortgage.
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