General Disclosure Regulations
made under Section 90 of the
Mortgage Regulation Act
S.N.S. 2012, c. 11
N.S. Reg. 124/2020 (effective November 1, 2021)
amended to N.S. Reg. 215/2022 (effective November 1, 2022)
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
General Disclosure Requirements
Written disclosure
Disclosure based on estimate or assumption
Clarity of disclosure, acknowledgment, consent
Disclosures by Mortgage Brokerages to Borrowers
Application of Sections 7 to 10
Prescribed contents, timing and manner of disclosure
Criteria for determining most suitable mortgage loan
Recommendation and assessment
Ensuring initial cost of borrowing disclosure
Disclosures by Mortgage Lenders or Mortgage Brokerages to Private Investors
Application of Sections 12 to 14
Disclosure to private investor about mortgage
Disclosure to private investor with respect to mortgage renewal
Deadlines for Disclosures to Investors
Deadline for disclosure by mortgage lender or mortgage brokerage
Deadline for disclosure by mortgage administrator
Citation
1 These regulations may be cited as the General Disclosure Regulations.
Definitions
2 In these regulations,
“Act” means the Mortgage Regulation Act;
“disclosure” means a disclosure of information required to be provided or
disclosed under the Act or its regulations;
“Form 1—Mortgage Brokerage Disclosure” means Form 1—Mortgage Brokerage
Disclosure as prescribed in the Forms Regulations made under the Act;
“Form 2—Mortgage Brokerage Recommendation and Assessment” means Form
2—Mortgage Brokerage Recommendation and Assessment as prescribed in the
Forms Regulations made under the Act;
“Form 4—Investor Disclosure Statement” means Form 4—Investor Disclosure
Statement as prescribed in the Forms Regulations made under the Act;
“Form 5—Investor Renewal Disclosure” means Form 5—Investor Renewal
Disclosure as prescribed in the Forms Regulations made under the Act.
General Disclosure Requirements
Written disclosure
3 (1) Every disclosure must be in writing.
(2) If a borrower consents in writing, in paper or electronic form, to receiving
disclosures in electronic form, the disclosures referred to in Sections 7 and 9 may
be provided to and returned by the borrower in an electronic form that the
borrower can retrieve and retain.
(3) If a private investor consents in writing, in paper or electronic form, the disclosures
required by Sections 12 and 13 may be provided to and returned by the private
investor in an electronic form that the private investor can retrieve and retain.
Disclosure based on estimate or assumption
4 (1) A disclosure may be an estimate or may be based on an assumption if, when the
disclosure is made,
(a) the actual information to be disclosed cannot be known; and
(b) the estimate or assumption is reasonable.
(2) If a disclosure is an estimate or is based on an assumption, the disclosure must
include a statement to that effect.
Clarity of disclosure, acknowledgment, consent
5 Every disclosure, consent or acknowledgment required by the Act or its regulations must
be
(a) expressed in plain language that is clear and concise; and
(b) presented in a manner that is logical and is likely to bring to the attention of
the borrower, lender or investor the information that is required to be
conveyed.
Disclosures by Mortgage Brokerages to Borrowers
Application of Sections 7 to 10
6 Sections 7 to 10 apply to every mortgage brokerage that is required by Section 31 of the
Act to act in the best interests of a borrower.
Prescribed contents, timing and manner of disclosure
7 (1) For the purposes of clause 32(1)(a) of the Act,
(a) the information contained in Form 1—Mortgage Brokerage Disclosure is
prescribed as the information that a mortgage brokerage is required to
provide to a borrower; and
(b) a completed Form 1—Mortgage Brokerage Disclosure must be provided to
a borrower before the mortgage brokerage provides any services to the
borrower.
(2) Before providing any services to a borrower, a mortgage brokerage must receive
and retain a copy of the Form 1—Mortgage Brokerage Disclosure that is signed
and dated by the borrower.
Criteria for determining most suitable mortgage loan
8 The assessment criteria set out under the heading “Assessment Criteria” in Form
2—Mortgage Brokerage Recommendation and Assessment are prescribed as the criteria
that a mortgage brokerage is required by clause 32(1)(b) of the Act to use in determining
a suitable mortgage loan for a borrower.
Recommendation and assessment
9 The information set out in Form 2—Mortgage Brokerage Recommendation and
Assessment is prescribed as the information that is required by clause 32(1)(c) of the Act
to be contained in a written assessment of the determination of a suitable mortgage that
must be provided by a mortgage brokerage to a borrower.
Ensuring initial cost of borrowing disclosure
10 A mortgage brokerage must ensure that an initial disclosure statement of the cost of
borrowing to be provided to a borrower by a mortgage lender in accordance with the
Cost of Borrowing Regulations made under the Act has been provided to a borrower by
or on behalf of the borrower’s mortgage lender within the time period prescribed in those
regulations.
Disclosures by Mortgage Lenders or Mortgage Brokerages to Private Investors
Application of Sections 12 to 14
11 Sections 12 to 14 apply to every mortgage lender dealing with a private investor and
every mortgage brokerage that is required by Section 33 of the Act to act in the best
interests of a private investor.
Disclosure to private investor about mortgage
12 (1) A mortgage lender or mortgage brokerage must provide each private investor with
all of the following information and documents for any investment in a mortgage
that the mortgage lender or mortgage brokerage presents for the consideration of
the private investor:
(a) a completed Form 4—Investor Disclosure Statement signed by 1 of the
following:
(i) an authorized representative of the mortgage lender,
(ii) a mortgage broker authorized by the mortgage brokerage;
(b) for an investment in an existing mortgage, a copy of the mortgage;
(c) a copy of any appraisal of the property completed in the previous 12 months
and available to the mortgage lender or mortgage brokerage;
(d) if an appraisal of the property as described in clause (c) is not available,
documentary evidence of the value of the property other than an agreement
of purchase and sale;
(e) a copy of any agreement of purchase and sale for the property entered into
in the previous 12 months and available to the mortgage lender or mortgage
brokerage, together with copies of all related schedules, amendments and
waivers;
(f) documentary evidence of the borrower’s ability to meet the mortgage
payments;
(g) a copy of the borrower’s application for the mortgage and of any document
submitted in support of the application;
(h) for a new mortgage, documentary evidence of any down payment made by
the borrower for the purchase of the property;
(i) a copy of any agreement that the private investor may be asked to enter into
with the mortgage lender or mortgage brokerage;
(j) for an investment in an existing mortgage, a certificate of insurance or other
documentary evidence confirming the insurance coverage for the property;
(k) all additional information that an investor of ordinary prudence would
consider to be material to a decision about whether to lend money on the
security of the property or to invest in the mortgage.
(2) A mortgage lender or mortgage brokerage must obtain the private investor’s
written acknowledgment that the mortgage lender or mortgage brokerage has
disclosed the information and documents required by this Section.
Disclosure to private investor with respect to mortgage renewal
13 (1) A mortgage lender or mortgage brokerage must provide each private investor with
all of the following information and documents for any renewal of a mortgage that
the mortgage lender or mortgage brokerage presents for the consideration of the
private investor:
(a) a completed Form 5—Investor Renewal Disclosure, signed by 1 of the
following:
(i) an authorized representative of the mortgage lender, or
(ii) a mortgage broker authorized by the mortgage brokerage;
(b) a copy of any appraisal of the property completed in the previous 12 months
and available to the mortgage lender or mortgage brokerage;
(c) a copy of any agreement of purchase and sale for the property entered into
in the previous 12 months and available to the mortgage lender or mortgage
brokerage, together with copies of all related schedules, amendments and
waivers;
(d) a certificate of insurance or other documentary evidence confirming the
insurance coverage on the property;
(e) all additional information that an investor of ordinary prudence would
consider to be material to a decision about whether to renew the mortgage.
(2) A mortgage lender or mortgage brokerage must obtain the private investor’s
written acknowledgment that the mortgage lender or mortgage brokerage has
disclosed the information and documents required by this Section.
Deadlines for Disclosures to Investors
Deadline for disclosure by mortgage lender or mortgage brokerage
14 (1) Except as provided in subsection (2), a disclosure of information required by the
Act or its regulations to be made by a mortgage lender or a mortgage brokerage to
an investor must be made at least 2 business days before the earliest of the
following events:
(a) the mortgage lender or mortgage brokerage receives money from the
investor;
(b) the mortgage lender or mortgage brokerage enters into an agreement to
receive money from the investor;
(c) the mortgage lender enters into an agreement to enter into the mortgage or
the investor enters into an agreement to purchase, exchange or sell the
mortgage;
(d) the money is advanced to the borrower under the mortgage;
(e) the investment completion date.
(2) If an investor consents in writing, in paper or electronic form, to receiving a
disclosure after the deadline set out in subsection (1), the disclosure may instead be
made
(a) no later than 1 business day before the earliest of the events set out in
subsection (1); or
(b) if the investor has received legal advice, at any time before the earliest of the
events set out in subsection (1).
Deadline for disclosure by mortgage administrator
15 (1) Except as provided in subsection (2), a disclosure of information required by the
Act or its regulations to be made by a mortgage administrator to an investor must
be made at least 2 business days before the mortgage administrator and the investor
enter into a mortgage administration agreement for the mortgage.
(2) If an investor consents in writing, in paper or electronic form, to receiving a
disclosure about a mortgage after the deadline set out in subsection (1), the
disclosure may instead be made
(a) no later than 1 business day before the mortgage administrator and the
investor enter into a mortgage administration agreement for the mortgage;
or
(b) if the investor has received legal advice, at any time before the mortgage
administrator and the investor enter into a mortgage administration
agreement for the mortgage.