The appellant mortgagor appealed a summary judgment granting the respondent mortgagee possession of his residential property.
The mortgagee claimed the mortgage was in default because the mortgagor failed to remit GST and employee tax deductions to the CRA for his business, resulting in a CRA lien on the property.
The Court of Appeal allowed the appeal, finding that whether unremitted GST constitutes a default under the standard charge terms of a residential mortgage is a novel issue of first instance that requires a full trial.
The Court also found a genuine issue for trial regarding whether the mortgagor had put the mortgage into good standing under s. 23 of the Mortgages Act by tendering the outstanding principal and interest.
