The plaintiff mortgagee brought a motion for summary judgment seeking foreclosure without a reference on a mortgage securing approximately $104,985.53.
The parties agreed on the outstanding balance but disputed the applicable interest rate under a series of unconventional mortgage extension agreements that referenced a dollar amount per day rather than a percentage.
The court held that the agreements did not clearly establish an agreed interest rate and therefore s. 3 of the Interest Act applied, fixing the rate at 5 percent per annum.
The court also assessed substantial indemnity costs but reduced the amount claimed as modestly excessive under Rule 57.01 of the Rules of Civil Procedure.
Judgment for foreclosure was granted with interest calculated at the statutory rate.
