The defendant mortgagor defaulted on her mortgage and the plaintiff mortgagee obtained default judgment and a writ of possession.
The mortgagor subsequently sought to refinance and challenged the amounts claimed by the mortgagee in its discharge statement, arguing that the default judgment estopped the mortgagee from claiming additional fees and that the fees were unreasonable or offended the Interest Act.
The court held that the default judgment did not merge the mortgage covenants, allowing the mortgagee to claim additional fees.
However, the court reduced several administrative and legal fees, disallowed a three-month termination bonus, and fixed the total amount required to discharge the mortgage at $376,661.51.
