The appellant mortgagee appealed a motion judge's decision finding that a mortgage commitment's interest rate provision breached section 8 of the Interest Act.
The provision increased the interest rate from 8.25% to 18% in the final month of the term unless the mortgage was renewed or discharged.
The Divisional Court allowed the appeal, holding that the interest rate increase was triggered by the passage of time rather than default, and therefore did not violate the Interest Act.
The appellant was awarded judgment reflecting the 18% interest rate for the final month and thereafter, along with costs.
