Mortgage Insurance Regulations
made under Section 15 of the
Housing Supply and Services Act
S.N.S. 2022, c. 36
N.S. Reg. 60/2023 (effective March 31, 2023)
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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Citation
Definitions
Amalgamation of First Fund and Second Fund to form Mortgage Insurance Fund
Mortgage insurance fee
Application of regulations
Mortgage Insurance Fund monies
Use of Mortgage Insurance Fund on default
Interest credited to Mortgage Insurance Fund
No adverse effect
Citation
1 These regulations may be cited as the Mortgage Insurance Regulations.
Definitions
2 In these regulations,
“Act” means the Housing Supply and Services Act;
“Corporation” means Housing Nova Scotia;
“Department” means the Department of Municipal Affairs and Housing;
“First Fund” means the First Mortgage Insurance Fund continued under the First
Mortgage Insurance Fund Regulations made under the Housing Act;
“Minister” means the Minister of Municipal Affairs and Housing;
“Mortgage Insurance Fund” means the Mortgage Insurance Fund referred to in
Section 3;
“Second Fund” means the Second Mortgage Insurance Fund continued under the
Second Mortgage Insurance Fund Regulations made under the Housing Act.
Amalgamation of First Fund and Second Fund to form Mortgage Insurance Fund
3 The First Fund and the Second Fund are continued, as a special purpose fund within the
meaning of the Finance Act, and are hereby amalgamated to form the Mortgage
Insurance Fund.
Mortgage insurance fee
4 (1) The Minister may levy a mortgage insurance fee not exceeding 3.36% of the
principal amount of any mortgage loan payable by a borrower when the regulations
apply.
(2) If the Minister levies a mortgage insurance fee under subsection (1), the entire
amount of the mortgage insurance fee becomes payable when 1 of the following
occurs:
(a) the first advance is made to the borrower, if the mortgage involves multiple
advances; or
(b) the entire principal amount of a mortgage is advanced to the mortgagor, if
the mortgage does not involve multiple advances.
(3) The mortgagor may use a portion of the mortgage funds to make the payment
under subsection (2).
(4) If the Minister levies a mortgage insurance fee under subsection (1), the Minister
must pay the mortgage insurance fee into the Mortgage Insurance Fund.
Application of regulations
5 (1) These regulations apply to mortgages in favour of the Corporation and the
Department made pursuant to a loan made under any of the following statutes:
(a) the Act;
(b) the Housing Nova Scotia Act;
(c) the former Housing Act.
(2) These regulations continue [to] apply to mortgages referred to in subsection 5(1)
after the Minister or the Minister’s assignee, or the Corporation or its assignee,
assigns its rights and obligations in a mortgage referred to in subsection 5(1) to a
third party in order for the borrower to secure a loan from the third party to
purchase or construct housing units to be used for the purposes referred to in
Section 2 of the Act.
Mortgage Insurance Fund monies
6 (1) The monies in the Mortgage Insurance Fund must be held on behalf of the
Minister and may be invested by the Minister in accordance with the Finance Act.
(2) Income earned on the First Fund and the Second Fund must be credited to the
Mortgage Insurance Fund.
Use of Mortgage Insurance Fund on default
7 If a mortgage referred to in Section 5 insured under these regulations is in default, losses
incurred as a result of the default may be charged to the Mortgage Insurance Fund.
Interest credited to Mortgage Insurance Fund
8 Interest accrued on the insurance fee may be credited to the Mortgage Insurance Fund
annually at the provincial borrowing rate as advised by the Minister of Finance and
Treasury Board on March 31 of each fiscal year.
No adverse effect
9 The repeal of the First Mortgage Insurance Fund Regulations and the Second Mortgage
Insurance Fund Regulations made under the Housing Act does not adversely affect the
First Fund or Second Fund or any outstanding loan made, guaranteed or insured under
those regulations.
The following regulations are not
yet in force and are not included in the current consolidation: