Mortgage Payment Deferral Request - COVID-19 Impact

Terms And Conditions

By submitting a request to defer your regular mortgage payments, you agree to the following terms and conditions:

1.    In these terms and conditions, “Scotiabank” means Scotia Mortgage Corporation and/or The Bank of Nova Scotia, as appropriate, either on its or their own behalf or on behalf of a Designated Mortgagee with whom you have a mortgage, and ‘you’ and ‘your’ refer to all those who are borrowers and guarantors under the mortgage loan with Scotiabank for which you are submitting a payment deferral request (the “Mortgage”).  If you have a Scotia Total Equity® Plan (STEP), “Mortgage” includes all mortgage loans under your STEP and this request applies to each such mortgage loan unless you advise us otherwise.

2.     You represent and warrant that all information provided to Scotiabank in connection with your mortgage deferral request is correct and true.

3.    You have requested to defer your regular mortgage payment (consisting of principal, interest and property taxes, if applicable) due and payable under your Mortgage.   If approved, your regular mortgage payment will be deferred starting with your next regular mortgage payment, scheduled two or more business days from today, and the deferral will continue for 6 months or until your maturity date if it comes first (the “Deferral Period”).  If your mortgage is renewed during the next 6 months, the mortgage payment deferral can be applied to your renewal term for the remainder of the 6 month period if you ask us to do this.  Your mortgage payments will re-start with the next scheduled payment following the end of the Deferral Period.  You may contact us if you want to cancel your mortgage payment deferral and re-start your payments before the end of the Deferral Period, with a minimum of two weeks’ notice.

4.    You acknowledge that creditor insurance premiums related to the Mortgage, if applicable, cannot be deferred and will continue to be charged and collected during the Deferral Period.  Your creditor insurance coverage will continue with the same coverages and amounts as provided in your Certificate and Schedule of Insurance during the Deferral Period.  Please see your Certificate of Insurance for full details about your creditor insurance coverage.

5.    During the Deferral Period, interest will continue to accrue at your mortgage interest rate and will be added to your Mortgage account balance at the end of the Deferral Period or when you cancel your mortgage payment deferral.  This will result in an increase in the outstanding principal balance of your Mortgage and you will pay more interest over the life of your mortgage.  At the end of your Deferral Period, you must resume making regular mortgage payments as they become due.  Your regular mortgage payments will be adjusted to reflect the new principal balance of your Mortgage and will be higher in order to maintain your remaining amortization period.  We will send you a notice at the end of the Deferral Period setting out your updated regular mortgage payment and your updated cost of borrowing information. You can find an example of how your mortgage payments would change assuming you complete the Deferral Period here.

6.    If your mortgage payment includes an amount for property taxes, the property taxes will continue to be paid during the Deferral Period if they become due.  If this results in a debit balance in your tax account, you will be charged interest at the interest rate applicable to your Mortgage on the debit balance. Following the Deferral Period, the property tax component of your mortgage payment will be adjusted to include any shortfalls as part of our annual property tax administration process.  If you are paying property taxes directly to your municipality, you must continue to pay them as they become due during the Deferral Period.

7.    By submitting your deferral request, you certify that:
(i)    There are no mortgages, encumbrances, executions or other liens registered on title to the property subject to the Mortgage since the registration of the Mortgage other than those in favour of Scotiabank; and
(ii)    All borrowers and guarantors (if any) under the Mortgage have consented to this mortgage payment deferral.

8.    Except as set out in these terms and conditions, all provisions of your Mortgage (including those in your personal credit agreement, charge and any renewals), continue to apply. 

9.    Applicable in the province of Quebec only. The parties have requested that this Agreement, as well as all related documents, be drawn up in English. Les parties ont exigé que le present contrat ainsi que tous les documents qui s'y rattachent soient redigés en anglais.