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Interest Act & Increased Interest Rate

Posted on December 17, 2021 | Posted in Five Liners, Real Estate

Alleghe Mortgage Fund Ltd. v. 1988758 Ontario Inc.  2021 Ont SCJ

Section 8 of the Mortgages Act proscribes an increased interest rate on arrears beyond the rate set out when the mortgage is not in arrears. An interest rate that increases during the term (e.g. the 12th month of a one year mortgage) does not run afoul of this section. The interest rate is increasing solely as a result of the passage of time and while the mortgage is still in good standing.


Jonathan Speigel


Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.


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