Short-Term Auto Payment Reduction
Terms and Conditions
By submitting a request to extend your Scotia Plan Loan with the Short-Term Auto Payment Reduction program, you agree to the following terms and conditions
1. In these terms and conditions, “Scotiabank” means The Bank of Nova Scotia, and “you” and “your” refer to the borrower under a Scotia Plan Loan with Scotiabank (the “Loan”).
2. You have requested to reduce your payments of your Loan for the number of months you communicated to Scotiabank through an online process (a “Short Term Auto Payment Reduction”). Once the Short- Term Auto Payment Reduction has been applied to your Loan, your next regular payment and subsequent payments will be reduced based on the payment amount and extension term you selected. Once the reduced payment period has ended, you must resume your regular scheduled payments unless you have prepaid your Loan balance in full before then.
3. If you have a variable rate loan and Prime rate changes during the reduced payment period, your reduced payment amount will not change. Once the reduced payment period ends the interest rate and payment amount will reflect the Prime rate change for all resumed regular payments.
4. The terms of your automatic pre-authorized payment agreement, if you have one, will change to reflect the new reduced payment amount for the number of months selected and then will revert back to your regular payment amount.
5. If your Loan payments are not up to date at the time of the Short-Term Auto Payment Reduction request, the arrears including any unpaid interest will be added to the outstanding balance of the Loan before extending the term. This may result in a longer term extension than the months you select through this request and/or fewer reduced payments than you selected. You must resume making your regular Loan payments as they become due.
6. As a result of the Short-Term Auto Payment Reduction, the cost of borrowing for your Loan will increase. You will receive a letter from Scotiabank within 30 days of your Short-Term Auto Payment Reduction setting out the updated loan terms for your Loan.
7. You may be charged a one-time fee of up to $200 in order to facilitate the Short-Term Auto Payment Reduction request, which you may repay immediately online or by contacting Scotia Helps at 1 866 819 7382. If you do not pay the fee immediately, it will be added to your Loan balance and interest will be charged on it until it is paid. If you wish to pay the fee directly or have any further questions, please contact Scotia Helps 1 866 819 7382.
8. You have read and agreed to our collection, use and disclosure of your information in accordance with our Privacy Agreement
9. Scotia Loan Protection insurance: where there is a change to your loan payment amount, the insurance premiums for Critical Illness, Disability, and Job Loss (if applicable) will be recalculated for each insured based on current age and current loan payment. Life and Terminal Illness insurance premiums will remain the same.
10. You certify that if your Loan is secured, that the property subject to the Loan has no claims against it except by Scotiabank.
11. Except as set out in these terms and conditions, all provisions of your Loan agreement continue to apply.
12. Quebec Residents Only / Résidents du Québec seulement: You acknowledge that the French and English versions of these terms and conditions were remitted to you. You expressly request and agree to be bound exclusively by the English version of these terms and conditions and that all related documents, including any notices, be drafted in English only. Vous reconnaissez que les versions française et anglaise de la présente convention vous ont été remises. Vous demandez et acceptez expressément d'être lié exclusivement par la version anglaise de la présente convention et que tous les documents qui s’y rattachent, y compris tous avis, soient rédigés en anglais seulement.