The Three Months’ Interest Mortgage Penalty: Do You Need To Pay This “Standard Fee”?
March 24th, 2021
In a previous blog post, we advised that certain “standard” fees being included on Mortgage Discharge Statements or set out in Notices of Sale under Mortgage may be unenforceable as “penalties” or as contrary to the Interest Act.
In a series of recent decisions, courts have confirmed that where a mortgage is in default due to maturity (meaning the term of the mortgage has expired) AND the lender has commenced an enforcement action (meaning the lender has served a Statement of Claim or a Notice of Sale under Mortgage), the lender may not charge the three-month interest penalty set out in s. 17 of the Mortgages Act.
Contact Financial Litigation in Toronto for Representation in Disputing Mortgage Default Fees
If you have received a Notice of Sale under Mortgage, and/or a Mortgage Discharge Statement containing a 3-month interest penalty, contact Eli Karp at Financial Litigation to assist in disputing this or other “standard” fees such as a Discharge Statement Fee, Default Admin Fee, or Demand Fee.
The lawyers at Financial Litigation are experienced in defending enforcement claims. If you have been served with a Notice of Sale or a Statement of Claim, call 416-769-4107 ext. 1 or email email@example.com to discuss your rights, including an assessment of the legality of any fees imposed by a lender.