SCOTIA MORTGAGE CORPORATION

2344017 (07/05)

SM C SCHEDULE A

(Closed M ortgage)

to a M ortgage or Charge (the " mortgage" ), covering residential property containing not more than 4 dw elling units made betw een

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and SCOTIA M ORTGAGE CORPORATION dated

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Paying off a mortgage before the maturity date.

Although w e expect you to pay back your mortgage according to the payment schedule, you may pay off some, or the entire mortgage early based on the type of mortgage you have. If w e later agree to change or extend the terms of the mortgage, these prepayment provisions w ill not apply to the new or extended term. The terms used in this schedule have the same meaning as in the mortgage.

Closed M ortgage

Providing all your mortgage payments are up to date, you may increase your payments, or pay off some of your mortgage early in one of the w ays listed in the chart below. These options apply to partial prepayments only. The options are available each year and cannot be saved to use in a later year. Each year is defined as the 12-month period starting on the Interest Adjustment Date (IAD) or the anniversary of that date. If your mortgage term is less than 12 months, these options are available in each term.

PREPAYM ENT OPTIONS

How

1 * by paying an extra regular mortgage payment (principal, interest and taxes)

2. * by paying up to 15% of the original principal amount of your mortgage

W h en

What it means

on any regular payment date during the year

at any time (excluding day prepaid in full), sum total not to exceed the yearly maximum

your principal mortgage balance w ill be reduced by that amount

3. by increasing your regular mortgage payment by up to 15% of the principal and interest payment set for the term of the mortgage

once each year of the term of your mortgage

* Only items 1 & 2 qualify for the M iss a Payment option

M iss a Payment? Option You may miss any scheduled payment as long as you have prepaid an amount equal to the amount of the payment you intend to miss in this term, and your mortgage is not in default. You cannot how ever, miss your mortgage credit insurance premium, if applicable. Extra payments or prepayments may not be used to miss a payment if this mortgage is assumed by a subsequent purchaser.

Prepayment costs

When you prepay some, or the entire principal of your mortgage, you w ill incur prepayment costs unless the partial prepayment is in accordance w ith the Payment Options chart. The costs depend on w hen you make your prepayment. There are tw o calculation periods based on the term of your mortgage: closed period and open period. You can how ever, reduce these costs if you supply a replacement mortgage as described on the reverse.

During the closed period you may only prepay your entire mortgage if you have entered into a good faith arms length sale of the mortgaged property and if you pay the penalties set out below.

DETERM INING YOUR CLOSED/ OPEN PERIODS

Term of mort gage

Closed Period

Calculat ion Periods Open Period

6 month 1 year 2 year 3 year 4 or 5 year t erm 7 year t erm

CM HC* insured 7 year conventional

not CMHC* insured

First 3 mont hs First 3 mont hs First year First 2 years First 3 years First 3 years

First 5 years

Last 3 mont hs Last 9 mont hs Last year Last year Last year or 2 years Last 4 years

Last 2 years

* CM HC ref ers t o Canada M ort gage and Housing Corporat ion

? Registered Trademarks of The Bank of Nova Scotia. Scotiabank acts as agent of Scotia M ortgage Corporation, a w holly ow ned subsidiary.

QUEBEC

Closed Period During the closed period, the cost to pay off some, or the entire principal amount of your mortgage early, is the higher of (A) or (B), plus a reinvestment fee. That fee is dependent on the length of time you have had the mortgage: (A) 3 mont hs' int erest cost s at t he mort gage rat e on t he amount you w ant t o pay (B) t he int erest rat e diff erent ial. This means t he diff erence bet w een your exist ing mort gage

int erest rat e and t he int erest rat e current ly charged f or a mort gage similar t o yours f or t he remaining t erm of t he loan. (This is a mort gage w hich has a t erm t hat is t he next short est t o t he remaining t erm of your exist ing mort gage.) The cost is calculat ed on t he amount you w ish t o prepay. If you pay off your mortgage within the first year after the Interest Adjustment Date, the reinvest ment f ee is $500. In t he second year t he f ee is $400 and $300 in t he t hird year. There is no fee if you have had the mortgage for more than 3 years.

Open Period In the open period, the cost to pay off some, or the entire principal amount of your mortgage early is 3 months' interest costs at the mortgage rate on the amount you want to pay.

Reduce Early Payment Costs w ith a Replacement M ortgage You can reduce t he cost s of paying off your ent ire mort gage early if you concurrent ly provide us w it h a qualif ying replacement mort gage f or an equal or great er amount t han your exist ing mort gage. If you do, t hen in t he closed period of your mort gage t erm, your cost is t he lesser of (C) or (D). In no event w ill your prepayment cost s be less t han zero. (C) int erest rat e diff erent ial. This means t he diff erence bet w een your exist ing mort gage

int erest rat e and t he int erest rat e current ly charged f or a mort gage similar t o yours f or t he remaining t erm of t he loan. (This is a mort gage w hich has a t erm t hat is t he next short est t o t he remaining t erm of your exist ing mort gage.) The cost is calculat ed on t he amount you w ish t o prepay. (D) t he int erest rat e diff erent ial bet w een your exist ing mort gage rat e and t he int erest rat e of t he replacement mort gage f or t he remaining t erm of t he loan. The cost is calculat ed on t he amount you w ish t o prepay. We may f urt her reduce t he cost by a minimum of $300, depending on t he amount by w hich t he replacement mort gage exceeds t he amount of your exist ing mort gage. We w ill also w aive t he reinvest ment f ee. In t he open period of your mort gage t erm, your cost is t he lesser of (C) or (D) above, or (E). In no event w ill your prepayment cost s be less t han zero: (E) 3 mont hs' int erest cost s at your exist ing mort gage rat e. We may also reduce t his cost by a minimum of $300 as not ed above. Portable M ortgage As long as w e agree in w rit ing, you may t ransf er your exist ing mort gage balance t o a new home or you may combine your exist ing balance w it h addit ional f unds and, depending on t he remaining t erm of t he exist ing mort gage, obt ain an ext ended t erm. The int erest rat e on t he replacement mort gage w ill be a blending of t he rat e you w ere paying on t he f unds t ransf erred f rom your exist ing mort gage and t he rat e applicable t o t he t erm of t he replacement mort gage and/or addit ional amount .

Continuing Liability Unless you prepay t he balance of t he principal amount ow ing, you must cont inue t o make your regular mont hly mort gage payment s.

2344017 (07/05)

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