The plaintiff brought a motion for summary judgment against the defendants for a debt owed under two private mortgages.
The defendants argued that the interest terms contravened sections 6 and 8 of the Interest Act because interest was prepaid and deducted from the advance, allegedly creating a blended mortgage.
The court found no genuine issue requiring a trial, holding that the mortgages were clearly interest-only and that the interest rate increase was triggered by the passage of time, not default.
Summary judgment was granted in favour of the plaintiff.
