Definition

1  For the purpose of this regulation, unless the context otherwise requires, "dependent" means a person under the age of 18 years and includes a person over the age of 18 years who is permanently disabled from employment, or who is in full attendance at a learning institution, and is financially dependent on the mortgagor.

 Amount of leasehold mortgage loan

2  For the purpose of section 8 of the Home Conversion and Leasehold Loan Act, the total amount to be advanced under a loan by way of leasehold mortgage shall not exceed $30 000.

[am. B.C. Reg. 470/81, s. 2.]

 Term of leasehold mortgage

3  The term of

(a) a leasehold mortgage, or

(b) a renewal of a leasehold mortgage

shall be 5 years.

[en. B.C. Reg. 560/79, s. 1.]

 Specified interest rate of leasehold mortgage loan

4  Subject to the limitation contained in section 6 (2) of the Home Conversion and Leasehold Loan Act, the specified interest rate

(a) in a leasehold mortgage shall be 10% per annum, and

(b) in a renewal of a leasehold mortgage shall be 12% per annum.

[en. B.C. Reg. 560/79, s. 2; am. B.C. Reg. 470/81, s. 3.]

 How interest rate is to be set

5  The eligible interest rate in a leasehold mortgage shall be as set by the Mortgage Eligibility Committee for each mortgage at a rate that results in the payments to be made by the mortgagor, on the mortgage, on the lease and on the real property taxes, not exceeding in the aggregate an amount equal to 25% of the income of the mortgagor's family, as determined by the Mortgage Eligibility Committee; but the rate shall not be less than 5% per annum.

 Review on anniversary date

6  Notwithstanding that the leasehold mortgage may not have reached full term, the Mortgage Eligibility Committee may review the family income of the mortgagor on the third anniversary date of the mortgage and every third year thereafter where the mortgage is renewed, and set a new, higher, eligible interest rate on the mortgage.

 If leasehold mortgagor assigns lease

7  (1)  Subject to subsection (2), where a leasehold mortgagor assigns his lease or otherwise disposes of his interest in the lease or mortgage, he must repay to the minister the difference between the amount due calculated at the specified interest rate and the amount due calculated at the eligible interest rate, plus the amount of any deferral of payments under the lease; but where there is no default in payments under the mortgage or the lease, the mortgagor may deduct the lesser of one third of the difference between the calculated amounts plus the deferral amount, or an amount that is equal to $25 times the number of months that the mortgagor occupied the mortgaged property, from the interest adjustment date of the mortgage to the date of assignment or disposition.

(2)  Notwithstanding subsection (1), where the interest of the leasehold mortgagor in the lease or mortgage is transferred to a co-lessee or co-mortgagor or pursuant to a transmission as defined in the Land Title Act, the Mortgage Eligibility Committee may require the mortgagor or his personal representative to repay the amount referred to in subsection (1).

[am. B.C. Reg. 470/81, s. 4.]

 If mortgagor ceases to occupy property

8  Where the mortgagor, during the term of the mortgage or a renewal thereof, ceases to occupy the mortgaged property and allows the property to be occupied by another person for consideration, the specified interest rate and not the eligible interest rate shall apply to the mortgage for the period of the mortgagor's absence.

 Amount of conversion mortgage loan

9  For the purposes of section 8 (2) (b) of the Home Conversion and Leasehold Loan Act, the total amount to be advanced under a loan by way of conversion mortgage shall not exceed $12 000 in respect of the first eligible residence and $6 000 for each eligible residence after the first.

[am. B.C. Reg. 470/81, s. 5.]

 Term of conversion mortgage

10  The term of a conversion mortgage shall be 5 years.

 Specified interest rate of conversion mortgage loan

11  (1)  Where the conversion mortgage is a first financial charge on the property to be mortgaged, the specified interest rate shall be 8% per annum.

(2)  Where the conversion mortgage is a second financial charge upon the property to be mortgaged, the specified interest rate shall be 9% per annum.

(3)  For the purposes of this section a mortgage or grant made under the Provincial Home Acquisition Act shall be deemed not to be a financial charge.

 Amendment, renewal or extension of time for payment

12  No amendment, renewal or extension of time for payment of the first mortgage and no advances of additional sums thereunder shall be made without the written approval of the Mortgage Eligibility Committee, and upon any such amendment, renewal or extension of time for payment taking place without such approval, the second mortgage becomes due and payable. If further funds are to be advanced against a first mortgage then the second mortgage automatically becomes due and payable.

[en. B.C. Reg. 4/75.]

 Amounts advanced for applications after Sept. 9, 1976

13  Notwithstanding section 9, for purposes of section 8 (2) (b) of the Home Conversion and Leasehold Loan Act, where an application has been received after September 9, 1976, the amounts to be advanced under a loan by way of a conversion mortgage shall not exceed $15 000 in respect of the first eligible residence and $9 000 for each eligible residence after the first.

[en. B.C. Reg. 490/76; am. B.C. Reg. 470/81, ss. 5, 6.]

 Amounts advanced for applications after Nov. 30, 1981

13.1  Notwithstanding sections 9 and 13, for the purposes of section 8 (2) (b) of the Home Conversion and Leasehold Loan Act, where an application is received on or after the day this section comes into force, the amount to be advanced under a loan by way of a conversion mortgage shall not exceed $25 000 for each new eligible residence.

[en. B.C. Reg. 470/81, s. 7.]

 Specified interest rate for application after Sept. 9, 1976

14  Notwithstanding section 11, where an application is received after September 9, 1976,

(a) where the conversion mortgage is a first financial charge on the property to be mortgaged, the specified interest rate shall be one percentage point less than the interest rate for insured loans under the National Housing Act (Canada) as at the date the application is received by the Department of Housing, and

(b) where the conversion mortgage is a second financial charge on the property to be mortgaged, the specified interest rate shall be the interest rate for insured loans under the National Housing Act (Canada) as at the date the application is received by the Department of Housing.

[en. B.C. Reg. 490/76.]

 Specified interest rate for application after Nov. 30, 1981

14.1  (1)  Notwithstanding sections 11 and 14, where an application is received on or after the date this section comes into force the specified interest rate shall be

(a) where the conversion mortgage is a first financial charge on the property to be mortgaged, the greater of

(i)  14% per annum, or

(ii)  an interest rate 7% per annum less than the interest rate being charged by Canada Mortgage and Housing Corporation for direct loans under the National Housing Act (Canada), and

(b) where the conversion mortgage is a second financial charge on the property to be mortgaged, the greater of

(i)  15% per annum, or

(ii)  an interest rate 6% per annum less than the interest rate being charged by Canada Mortgage and Housing Corporation for direct loans under the National Housing Act (Canada).

(2)  Notwithstanding subsection (1) and sections 11 and 14, where, on the coming into force of this section, a mortgagor is paying a conversion mortgage made under the Act and bearing an interest higher than 14% per annum in the case of a first financial charge on the property mortgaged, or 15% per annum in the case of a second financial charge on the property mortgaged, the specified interest rate shall on and after the coming into force of this section be reduced to 14% per annum in the case of a first financial charge and 15% per annum in the case of a second financial charge.

[en. B.C. Reg. 471/81, s. 1.]

 If government is registered owner of leasehold mortgage

15  Where the government is the registered owner of a leasehold mortgage and the mortgagor becomes the registered owner of a right to purchase the mortgaged land by instalments, the instalments shall be included for the purpose of determining whether the mortgagor is entitled to the eligible interest rate under section 5 of this regulation.

[en. B.C. Reg. 321/79.]