Cost of Borrowing Disclosure Regulations

made under Section 90 of the

Mortgage Regulation Act

S.N.S. 2012, c. 11

N.S. Reg. 125/2020 (effective November 1, 2021)

Table of Contents

Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.
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Interpretation and Application

Citation

Definitions

Application of regulations

Application of Sections 5 to 21

Cost of Borrowing

Calculation of APR

Annual interest rate as APR

Included and excluded charges

Disclosure to Borrowers

Content, manner and timing of disclosure prescribed for Section 27 of Act

Manner of providing information

Disclosure based on estimate or assumption

Clarity of disclosure, acknowledgment, consent

Timing for providing initial disclosure statement

Disclosure statement information—fixed interest mortgage for fixed amount

Disclosure statement information—variable interest mortgage for fixed amount

Disclosure statement information—mortgage securing line of credit

Information to be disclosed in credit card application

Disclosure statement information—mortgage secured by credit card

Disclosure statement—amendment to mortgage

Disclosure statement information—renewal of mortgage

Disclosures when mortgage lender offers to waive payment

Disclosure statement information—cancellation of optional services

Default Charges

Default charges to recover costs

Advertising

Advertising—mortgage for a fixed amount

Advertising—line of credit

Advertising—interest-free periods

Purchasing Insurance

Disclosure of information if borrower required to purchase insurance

Interpretation and Application

Citation

1 These regulations may be cited as the Cost of Borrowing Disclosure Regulations.

Definitions

2 In these regulations,

“APR” means the cost of borrowing expressed as an annual rate on the principal, calculated in accordance with Section 5;

“disclosure statement” means a statement containing the information to be provided by a mortgage lender to a borrower as required by Section 27 of the Act and in accordance with these regulations;

“high-ratio mortgage” means a mortgage under which the amount advanced, together with the amount outstanding under any other mortgage that ranks equally with, or prior to, the mortgage loan exceeds 80% of the market value of the property securing the mortgage loan;

“initial disclosure statement” means a disclosure statement provided to a borrower with whom a mortgage lender proposes to enter into a mortgage;

“principal” means the amount borrowed under a mortgage, but does not include any cost of borrowing;

“public index” means an interest rate, or a variable base rate for an interest rate, that is published at least weekly in a newspaper or magazine of general circulation, or in some media of general circulation or distribution, in areas where borrowers whose mortgages are governed by that interest rate reside.

Application of regulations

3 (1) These regulations apply to all mortgages other than a mortgage described in subsection (2).

(2) These regulations do not apply to either of the following mortgages:

(a) a mortgage entered into with a borrower who is not a natural person;

(b) a mortgage that a borrower enters into for business purposes.

Application of Sections 5 to 21

4 Sections 5 to 21 do not apply to a mortgage if the borrower is given a disclosure statement on behalf of a person acting as the mortgage lender and the disclosure statement meets the disclosure requirements of the corresponding legislation, as set out in the following table:

Person Acting as Mortgage Lender	Corresponding Legislation
a bank or an authorized foreign bank as defined in the Bank Act (Canada)	Bank Act (Canada)
a retail association as defined in the Cooperative Credit Associations Act (Canada)	Cooperative Credit Associations Act (Canada)
an insurance company	Insurance Companies Act (Canada)
a body corporate to which the Trust and Loan Companies Act (Canada) applies	Trust and Loan Companies Act (Canada)

Cost of Borrowing

Calculation of APR

5 (1) For the purpose of a disclosure statement, the cost of borrowing for a mortgage is the APR as calculated using the following formula:

APR = (C ÷ (T × P)) x 100

in which:

APR = the annual percentage rate cost of borrowing,

C = the cost of borrowing, as described in Section 7, over the term of the mortgage,

P = the average of the principal of the mortgage outstanding at the end of each period for the calculation of interest under the mortgage, before subtracting any payment that is due at that time, and

T = the term of the mortgage in years, expressed to at least 2 decimal points of significance.

(2) In calculating the cost of borrowing under subsection (1), all of the following apply:

(a) the APR may be rounded off to the nearest 1/8 of a percent;

(b) each instalment payment made on the mortgage must be applied first to the accumulated cost of borrowing and then to the outstanding principal;

(i) 1 month is 1/12 of a year,

(ii) 1 week is 1/52 of a year, and

(iii) 1 day is 1/365 of a year;

(d) if the annual interest rate underlying the calculation is variable over the period of the mortgage, it must be set as the annual interest rate that applies on the date that the calculation is made;

(e) if there are no instalment payments under the mortgage, then the APR must be calculated on the basis that the outstanding principal is to be repaid in 1 lump sum at the end of the term of the mortgage;

(f) a mortgage for an amount that comprises, in whole or in part, an outstanding balance from a prior mortgage is a new mortgage for the purpose of the calculation.

(3) The cost of borrowing for a line of credit or credit card that is secured by a mortgage is as follows:

(a) for a mortgage that has a fixed annual interest rate, that annual interest rate;

(b) for a mortgage that has a variable annual interest rate, the annual interest rate that applies on the date of the disclosure.

Annual interest rate as APR

6 (1) The APR for a mortgage is the annual interest rate if there is no cost of borrowing other than interest.

(2) If an interest rate is disclosed in accordance with section 6 of the Interest Act (Canada), the APR must be calculated in a manner that is consistent with that section.

Included and excluded charges

7 (1) Except as provided in subsection (2), the cost of borrowing for a mortgage, other than one that secures a line of credit, consists of the aggregate of all the costs of borrowing under the mortgage over its term, and includes all of the following charges:

(a) administrative charges, including charges for services, transactions or any other activity in relation to the mortgage, but excluding any charges paid to the mortgage brokerage directly by the borrower and disclosed to the borrower by the mortgage brokerage;

(b) charges for the services or disbursements of a lawyer or notary hired by the mortgage lender that are payable by the borrower;

(d) brokerage charges paid by the mortgage lender to a mortgage brokerage in relation to the mortgage, if the borrower is required to reimburse the mortgage lender for the charges;

(e) charges for appraisal, inspection or surveying services provided directly to the borrower in relation to property that is security for the mortgage, if those services are required by the mortgage lender.

(2) The cost of borrowing for a mortgage does not include any of the following charges:

(a) charges for insurance on the mortgage, if either of the following applies:

(i) the insurance is optional,

(ii) the borrower is the beneficiary of the insurance and the amount insured reflects the value of an asset that is security under the mortgage;

(b) charges for an overdraft;

(c) charges to register documents or obtain information from a public registry about security interests related to property given as security;

(d) penalty charges for the prepayment of the mortgage;

(e) charges for the services or disbursements of a lawyer or notary, other than those mentioned in clause (1)(b);

(f) charges for insurance against defects in title to real property, if all of the following apply:

(i) the borrower selects the insurer,

(ii) the insurance is paid for directly by the borrower,

(iii) the borrower is the beneficiary of the insurance;

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

(h) charges for insurance against default on a high-ratio mortgage;

(i) charges to maintain a tax account that is required for a high-ratio mortgage or that is optional;

(j) any charges to discharge a security interest;

(k) default charges.

Disclosure to Borrowers

Content, manner and timing of disclosure prescribed for Section 27 of Act

8 The information required to be provided by a mortgage lender to a borrower under Section 27 of the Act must be in the form of a written disclosure statement that

(a) includes the information required by these regulations; and

(b) is given to the borrower within the time period and in the manner specified in these regulations.

Manner of providing information

9 (1) A disclosure statement may be in Form 3 of the Forms Regulations made under the Act or another separate document, or it may be part of another document.

(2) If a borrower consents in writing, in paper or electronic form, a disclosure statement may be provided to the borrower in an electronic form that the borrower can retrieve and retain.

Disclosure based on estimate or assumption

10 Information disclosed in a disclosure statement may be based on an assumption or estimate if all of the following conditions are met:

(a) the assumption or estimate is reasonable;

(b) the actual information cannot be known by the mortgage lender when the mortgage lender makes the statement;

Clarity of disclosure, acknowledgment, consent

11 A disclosure statement, or a consent in relation to a disclosure statement, must be

(a) expressed in plain language that is clear and concise; and

(b) presented in a manner that is logical and likely to bring to the borrower’s attention the information that is required to be disclosed.

Timing for providing initial disclosure statement

12 (1) Except as provided in subsection (2), the prescribed time for when an initial disclosure statement to a borrower must be provided is at least 2 business days before the earlier of the following dates:

(a) the day on which the borrower signs the mortgage;

(b) the day on which the borrower makes any payment in connection to the mortgage, excluding any application fee paid by the borrower in connection with the mortgage.

(2) A borrower who receives legal advice may waive in writing the requirement for an initial disclosure statement to be provided within the period in subsection (1).

Disclosure statement information—fixed interest mortgage for fixed amount

13 (1) An initial disclosure statement for a mortgage with a fixed interest rate for a fixed amount that is to be repaid on a fixed future date or by instalment payments must include all of the following information:

(a) the principal amount of the mortgage;

(b) the amount of each advance of the principal and when each advance is to be made;

(d) the cost of borrowing over the term of the mortgage, expressed in dollars and cents;

(e) the term of the mortgage, and the period of amortization if it is different from the term;

(f) the annual interest rate and any circumstances under which it is compounded;

(g) the APR, if it differs from the annual interest rate;

(h) the date on and after which interest is charged and information concerning any period during which interest does not accrue;

(i) the amount of each payment and when it is due;

(j) the fact that each payment made on the mortgage must be applied first to the accumulated cost of borrowing and then to the outstanding principal;

(k) an amortization schedule for the term of the mortgage showing all of the following:

(i) the principal amount,

(ii) the due date and amount of each periodic payment,

(iii) the portion of each periodic payment that is charged as interest or is applied on principal,

(iv) the outstanding balance of the mortgage after each periodic payment,

(v) the principal amount at maturity;

(l) information about any optional service in relation to the mortgage that the borrower accepts, the charges for each optional service and the conditions under which the borrower may cancel the service, unless the information is disclosed in a separate statement before the optional service is provided;

(m) the information about the mortgage terms and conditions required by Section 8 of the Act, including a description of any components of a formula used to calculate a rebate, charge or penalty to be imposed on the borrower if the borrower exercises a right to repay the amount borrowed before the maturity of the mortgage;

(n) if Section 21 respecting providing optional services applies to the mortgage, the formula set out in subsection 21(3);

(o) the particulars of the charges or penalties to be imposed on the borrower if the borrower fails to repay the amount of the mortgage at maturity or fails to pay an instalment on the date the instalment is due to be paid, including default charges that may be imposed under Section 22;

(p) identifying information about the property in which the mortgage lender takes a security interest under the mortgage;

(q) any charge for a mortgage brokerage, if the brokerage charges are included in the amount borrowed and are paid directly by the mortgage lender to the brokerage;

(r) the fact that there is a charge to discharge a security interest and the amount of the charge on the date that the statement is provided;

(s) the nature and amount of any charge other than an interest charge.

(2) If the outstanding balance of a mortgage referred to in subsection (1) is increased because the borrower has missed a scheduled instalment payment or because a default charge is levied on the borrower for missing a scheduled instalment payment, and consequently the amount of each of the subsequently scheduled instalment payments does not cover the interest accrued during the period each payment is scheduled for, the mortgage lender must, no later than 30 days after the date the missed payment was scheduled or the default charge imposed, give the borrower a subsequent disclosure statement that describes the situation and its consequences.

Disclosure statement information—variable interest mortgage for fixed amount

14 (1) An initial disclosure statement for a mortgage with a variable interest rate for a fixed amount to be repaid on a fixed future date or by instalment payments must include all of the following information:

(a) the information prescribed in subsection 13(1) for a fixed interest rate mortgage;

(b) the annual rate of interest that applies on the date of the disclosure statement;

(c) the method for determining the annual interest rate that applies after the date of the disclosure statement and when that determination is made;

(d) the amount of each payment based on the annual interest rate that applies on the date of the disclosure statement and the dates when those payments are due;

(e) the total amount of all payments and of the cost of borrowing based on the annual interest rate that applies on the date of the disclosure statement;

(f) if the loan is to be paid by instalment payments and the amount to be paid is not adjusted automatically to reflect changes in the annual interest rate that apply to each instalment payment,

(i) the annual interest rate above which the amount of a scheduled instalment payment on the initial principal does not cover the interest due on the instalment payment, and

(ii) the fact that negative amortization is possible;

(g) if the loan does not have regularly scheduled payments,

(i) the conditions that must occur for the entire outstanding balance, or part of it, to become due, or

(ii) a description of the provisions of the mortgage that set out the conditions referred to in subclause (i).

(2) If the variable interest rate for a mortgage referred to in subsection (1) is determined by adding or subtracting a fixed percentage rate of interest to or from a public index that is a variable rate, the mortgage lender must give the borrower an additional disclosure statement at least once every 12 months that contains all of the following information:

(a) the annual interest rate at the beginning and end of the period covered by the disclosure statement;

(b) the outstanding balance at the beginning and end of the period covered by the disclosure statement;

(c) the amount of each instalment payment due under a payment schedule and the time when each payment is due, based on the annual interest rate that applies at the end of the period covered by the disclosure statement.

(3) If the variable interest rate for a mortgage referred to in subsection (1) is determined by a method other than that referred to in subsection (2), the mortgage lender must give the borrower an additional disclosure statement that contains all of the following information no later than 30 days after increasing the annual interest rate by more than 1% above the most recently disclosed rate:

(a) the new annual interest rate and the date on which it takes effect;

(b) the amount of each instalment payment and the time when each payment is due, for payments that are affected by the new annual interest rate.

Disclosure statement information—mortgage securing line of credit

15 (1) An initial disclosure statement for a mortgage that secures a line of credit or any other open credit facility must include all of the following information:

(a) the initial credit limit, if it is known at the time the disclosure is made;

(b) the annual interest rate, or the method for determining it if it is variable;

(d) the minimum payment during each payment period or the method for determining it;

(e) each period a statement of account is to be provided;

(f) the day on and after which interest accrues, and information concerning any grace period that applies;

(g) particulars of the charges or penalties to be imposed on the borrower if the borrower fails to repay the amount of the mortgage at maturity or fails to pay an instalment on the day the instalment is due to be paid, including default charges that may be imposed under Section 22;

(h) identifying information about the property in which the mortgage lender takes a security interest under the mortgage;

(i) information about any optional service in relation to the mortgage that the borrower accepts, the charges for each optional service and the conditions under which the borrower may cancel the service, unless that information is disclosed in a separate statement before the optional service is provided;

(j) a local or toll-free telephone number, or a telephone number with a prominent indication that collect calls are accepted, that the borrower may use to get information about the account during the mortgage lender’s regular business hours;

(k) any charge for a mortgage brokerage, if the brokerage’s charges are included in the amount borrowed and are paid directly by the mortgage lender to the brokerage.

(2) If the initial credit limit is not known when the initial disclosure statement referred to in subsection (1) is made, the mortgage lender must disclose it

(a) in the first statement of account provided to the borrower; or

(b) in a separate statement that the borrower receives on or before the date on which the borrower receives the first statement of account.

(3) Except as provided in subsection (4), in addition to the initial disclosure statement referred to in subsection (1), a mortgage lender must give a borrower a disclosure statement at least once a month that contains all of the following information:

(a) the period covered by the disclosure statement and the opening and closing balances in the period;

(b) an itemized statement of account that discloses each amount credited or charged, including interest, and the dates when those amounts were posted to the account;

(d) the annual interest rate that applied on each day in the period and the total of interest charged at those rates in the period;

(e) the credit limit and the amount of credit available at the end of the period;

(f) the minimum payment and its due date;

(g) the borrower’s rights and obligations regarding any billing error that may appear in the statement of account;

(h) a local or toll-free telephone number, or a telephone number with a prominent indication that collect calls are accepted, that the borrower may use to get information about the account during the mortgage lender’s regular business hours.

(4) The additional disclosure statement described in subsection (3) is not required for a period during which there are no advances or payments if either of the following applies:

(a) there is no outstanding balance at the end of the period;

(b) the borrower has been given notice that the line of credit secured by the mortgage is suspended or cancelled due to default and the mortgage lender has demanded payment of the outstanding balance.

Information to be disclosed in credit card application

16 (1) Except as otherwise provided in this Section, a mortgage lender that issues a credit card secured by a mortgage must specify all of the following information in the credit card application form or in a document accompanying it, including the date on which each of the matters mentioned takes effect:

(a) for a credit card with a fixed rate of interest, the annual interest rate;

(b) for a credit card with no fixed rate of interest, the fact that the variable interest rate is determined by adding or subtracting a fixed percentage rate of interest to or from a public index, a description of the public index and the fixed percentage rate to be added or subtracted from it;

(d) the amount of any charges other than interest charges.

(2) Subsection (1) does not apply if the mortgage lender prominently discloses all of the following on the credit card application form or in a document accompanying it:

(a) a local or toll-free telephone number, or a telephone number with a prominent indication that collect calls are accepted, that the borrower may use to get information otherwise required by subsection (1) during the mortgage lender’s regular business hours;

(b) the fact that the applicant may obtain the information otherwise required by subsection (1) at the telephone number provided.

(3) For an individual who applies for a credit card by telephone or any electronic means, the information required by clauses (1)(a) and (d) must be disclosed to the applicant when the application is made.

(4) For a mortgage lender that solicits applications for credit cards secured by a mortgage in person, by mail, by telephone or by any electronic means, the information required by clauses (1)(a) and (d) must be disclosed at the time of the solicitation.

Disclosure statement information—mortgage secured by credit card

17 (1) An initial disclosure statement for a mortgage secured by a credit card must include all of the following information:

(a) the information prescribed in subsection 15(1) for mortgages securing a line of credit;

(b) the manner in which interest is calculated and the information about the interest rate prescribed in clause 16(1)(a) or (b);

(c) if the credit agreement requires the borrower to pay the outstanding balance in full on receiving a statement of account,

(i) a statement of that requirement,

(ii) the grace period by the end of which the borrower must have paid that balance, and

(iii) the annual interest rate charged on any outstanding balance not paid when due;

(d) the fact that if a lost or stolen credit card is used in an unauthorized manner, the maximum liability of the borrower is the lesser of the following:

(i) $50,

(ii) the maximum set by the credit agreement;

(e) the fact that, despite clause (d), if an unauthorized transaction is entered into at an automated teller machine by using the borrower’s personal identification number, the borrower’s maximum liability is the liability incurred by the transaction;

(f) the fact that if the mortgage lender receives a written or verbal report from the borrower of a lost or stolen credit card, the borrower is not liable for any transaction entered into through the use of the card after the mortgage lender receives the report.

(2) If the initial credit limit is not known when the initial disclosure statement is given, it must be disclosed

(a) in the first statement of account provided to the borrower; or

(b) in a separate statement that the borrower receives on or before the date that the borrower receives that first statement of account.

(3) Despite the disclosure requirements in Section 18 for an amendment to a mortgage, if a credit agreement for a credit card that secures a mortgage is amended, the mortgage lender must give the borrower a written statement at least 30 days before the amendment takes effect that sets out the changes to the information that was included in the initial disclosure statement for the mortgage, except that information is not required to be given about any of the following changes:

(a) any change in the credit limit;

(b) any extension of the grace period;

(d) any change concerning any optional service referred to in clause 15(1)(i) in relation to the credit agreement;

(e) any change in a variable interest rate referred to in clause 16(1)(b) as a result of a change in the public index referred to in that clause.

(4) A change described in clauses (3)(a) to (d) must be disclosed in the first periodic disclosure statement that is given to the borrower after the amendment to the credit agreement is made.

(5) In addition to the initial disclosure statement referred to in subsection (1), a mortgage lender that issues credit cards must give each borrower additional disclosure statements on a regular periodic basis, at least once a month, that contain all of the following information:

(a) the information prescribed in subsections 15(3) and (4), other than clauses 15(3)(b) and (c);

(b) an itemized statement of account that describes each transaction and discloses each amount credited or charged, including interest, and the dates when those amounts were posted to the account;

(c) the amount that the borrower must pay, on or before a specified due date, in order to have the benefit of a grace period;

(d) the sum for payments and the sum for purchases, credit advances and interest and other charges.

(6) An itemized statement of account required by clause (5)(b) is adequate if it permits the borrower to verify each transaction described by linking it with a transaction record provided to the borrower.

Disclosure statement—amendment to mortgage

18 (1) If a mortgage is amended by a subsequent agreement, the mortgage lender must give the borrower a written statement no later than 30 days after the date the borrower enters into the subsequent agreement that sets out the changes to the information that was included in the initial disclosure statement for the mortgage.

(2) If a mortgage for a fixed amount has a schedule for instalment payments and the schedule is amended by a subsequent agreement, the mortgage lender must give the borrower a written statement no later than 30 days after the borrower enters into the subsequent agreement that sets out the new payment schedule and any increase in the total amount to be paid or the cost of borrowing.

Disclosure statement information—renewal of mortgage

19 (1) If a mortgage is to be renewed on a specified date, the mortgage lender must give the borrower a subsequent disclosure statement at least 21 days before the specified renewal date that contains the information required by the following:

(a) Section 13, for a mortgage that is for a fixed interest rate;

(b) Section 14, for a mortgage that is for a variable interest rate.

(2) A disclosure statement referred to in subsection (1) must specify all of the following:

(a) that the cost of borrowing will not be increased after the disclosure statement is given to the borrower and before the mortgage is renewed;

(b) that the borrower’s rights under the mortgage continue, and the renewal does not take effect, until the date that is the later of the following:

(i) the specified renewal date,

(ii) the 21st day after the borrower receives the statement.

(3) A mortgage lender that does not intend to renew a mortgage after its term ends must notify the borrower of that intention at least 21 days before the end of the term.

Disclosures when mortgage lender offers to waive payment

20 (1) A mortgage lender that offers to waive a payment under a mortgage for a fixed amount without waiving the accrual of interest during the period covered by the payment must disclose to the borrower in a prominent manner in the offer that interest will continue to accrue during that period if the borrower accepts the offer.

(2) A mortgage lender that offers to waive a payment under a mortgage that secures a line of credit or a credit card must disclose to the borrower in a prominent manner in the offer whether interest will continue to accrue during any period covered by the offer if the borrower accepts the offer.

Disclosure statement information—cancellation of optional services

21 (1) This Section applies to a mortgage lender that provides optional services, including insurance services, to a borrower on an ongoing basis in connection with the mortgage.

(2) A disclosure statement in relation to a mortgage must specify all of the following:

(a) that the borrower may cancel an optional service by notifying the mortgage lender that the service is to be cancelled effective as of the earlier of the following dates:

(i) 1 month after the date that the disclosure statement was provided to the borrower,

(ii) the last date of the notice period provided for in the mortgage;

(b) that the mortgage lender must, without delay, refund or credit the borrower with the proportional amount, calculated in accordance with the formula set out in subsection (3), of any charges for the service paid for by the borrower and added to the balance of the mortgage loan, but unused as of the cancellation date referred to in the notice.

(3) The proportion of charges to be refunded or credited to a borrower after an optional service is cancelled are calculated using the following formula

R = A × ((n - m) ÷ n)

in which

R = the amount to be refunded or credited

A = the amount of the charges

n = the period between the imposition of the charge and the time when the services were, before the cancellation, scheduled to end

m = the period between the imposition of the charge and the cancellation.

Default Charges

Default charges to recover costs

22 If a borrower fails to make a payment when it becomes due or fails to comply with an obligation under the mortgage, in addition to interest, the mortgage lender may impose charges for the sole purpose of recovering any of the following costs that are reasonably incurred:

(a) the cost of legal services required to collect or attempt to collect the payment;

(b) expenses incurred to realize on a security interest taken under the mortgage or to protect such a security interest, including the cost of legal services required for that purpose;

(c) expenses incurred to process a cheque or other payment instrument that the borrower used to make a payment under the mortgage but that was dishonoured.

Advertising

Advertising—mortgage for a fixed amount

23 An advertisement of a mortgage for a fixed amount must meet all of the following requirements if it includes a representation about the interest rate or the amount of any payment or of any charge other than interest:

(a) the advertisement must also include the APR and the term of the mortgage;

(b) the APR must be provided at least as prominently as the representation and in the same manner as the representation, whether visually or aurally, or both;

(c) if the APR or the term of the mortgage is not the same for all mortgages to which the advertisement relates, the advertisement must be based on an example of a mortgage that fairly depicts all those mortgages and is identified as a representative example of them.

Advertising—line of credit

24 An advertisement of a mortgage that secures a line of credit must meet all of the following requirements if it includes a representation about the annual interest rate or the amount of any payment or of any charge other than interest:

(a) the advertisement must also include the annual rate of interest on the date of the advertisement and any initial or periodic charges other than interest;

(b) the information required by clause (a) must be provided at least as prominently as the representation and in the same manner as the representation, whether visually or aurally, or both.

Advertising—interest-free periods

25 An advertisement of a mortgage must meet all of the following requirements if it includes a representation, express or implied, that a period of the mortgage is free of any interest charges:

(a) the advertisement must indicate whether interest accrues during the period and is payable after the period;

(b) the information required by clause (a) must be provided at least as prominently as the representation, if it was express, or in a prominent manner, if it was implied;

(c) if interest does not accrue during the period, the advertisement must also disclose any conditions that apply to the forgiving of the accrued interest and the APR, or the annual interest rate in the case of a mortgage that secures a credit card or line of credit, for a period when those conditions are not met.

Purchasing Insurance

Disclosure of information if borrower required to purchase insurance

26 (1) A mortgage lender that requires a borrower to purchase insurance and offers to provide or arrange the insurance must at the same time clearly disclose to the borrower in writing that the borrower may purchase the required insurance through any insurer who may lawfully provide that type of insurance.

(2) A mortgage lender may reserve the right to disapprove on reasonable grounds an insurer selected by the borrower, and if that is the case, the disclosure required by subsection (1) must state that the mortgage lender reserves that right to disapprove.

The current consolidation of the Cost of Borrowing Disclosure Regulations made under the Mortgage Regulation Act includes all of the following regulations:

The following regulations are not yet in force and are not included in the current consolidation:

*See subsection 3(6) of the Regulations Act for rules about in force dates of regulations.

Note: Only regulations that are specifically repealed and replaced appear in this table. It may not reflect the entire history of regulations on this subject matter.

N.S. Regulation	In force date*	How in force	Royal Gazette Part II Issue
125/2020	Nov 1, 2021	date specified (date that Act comes into force on proclamation)	Oct 9, 2020

N.S. Regulation	In force date*	How in force	Royal Gazette Part II Issue

ad. = added am. = amended	fc. = fee change ra. = reassigned		rep. = repealed rs. = repealed and substituted
Provision affected		How affected
..........................................................

	Note	Effective date
1	Original text does not include any other subsections in Section 25. Subsection 25(1) redesignated as Section 25 for the purposes of this consolidation.	Nov 1, 2021

N.S. Regulation	Title	In force date	Repealed date

Cost of Borrowing Disclosure Regulations	N.S. Reg. 125/2020
Mortgage Regulation Act
Note: The information in these tables does not form part of the regulations and is compiled by the Office of the Registrar of Regulations for reference only.