C-73.2, r. 1 - Regulation respecting brokerage requirements, professional conduct of brokers and advertising

Section 58 Disposition versions

2023-03-23

58. (Revoked).

O.C. 299-2010, s. 58; O.C. 173-2023, s. 31.

2012-09-01

58. Except for a credit card or a line of credit, the cost of borrowing consists of all the costs of borrowing under the loan over its term and includes the following charges:

(1)  administrative charges, including charges for services, transactions or any other activity in relation to the loan;

(2)  charges for the services and disbursements of an advocate or notary hired by the lender and payable by the borrower;

(3)  insurance charges other than those excluded under subparagraphs 1, 6 and 8 of the second paragraph;

(4)  brokerage charges paid by the lender to a broker in connection with the loan, if the borrower is required to reimburse the lender for the charges; and

(5)  charges for appraisal, inspection or surveying services provided to the borrower in relation to the immovable that is security for the hypothec, if those services are required by the lender.

The cost of borrowing for a loan does not include

(1)  charges for insurance on the loan if

(a)  the insurance is optional; or

(b)  the borrower is its beneficiary and the amount insured reflects the value of the immovable that is security for the hypothec;

(2)  charges for an overdraft;

(3)  charges paid to register documents or obtain information from a public register about security interests related to the immovable given as security;

(4)  penalty charges for the prepayment of the loan;

(5)  charges for the services or disbursements of an advocate or notary, other than those mentioned in subparagraph 2 of the first paragraph;

(6)  charges for insurance against defects in title, if the borrower selects the insurer, if the insurance is paid for directly by the borrower and if the borrower is the beneficiary of the insurance;

(7)  charges for appraisal, inspection or surveying services in relation to the immovable that is security for the hypothec, if the borrower receives a report from the person providing the service and is entitled to give the report to third parties;

(8)  charges for insurance against default on a high-ratio loan;

(9)  charges to maintain a tax account that are required for a high-ratio loan or that are optional;

(10)  any charges to discharge a security interest; or

(11)  default charges.

O.C. 299-2010, s. 58.