1. The following definitions apply in these Regulations.

“borrower”

“borrower” means a person who obtains a residential mortgage. (emprunteur)

“institution”

“institution” means any of the following:

• (a) a bank, as defined in section 2 of the Bank Act;

• (b) an authorized foreign bank, as defined in section 2 of the Bank Act;

• (c) a retail association, as defined in section 2 of the Cooperative Credit Associations Act;

• (d) a company, as defined in subsection 2(1) of the Insurance Companies Act;

• (e) a society, as defined in subsection 2(1) of the Insurance Companies Act;

• (f) a company, as defined in section 2 of the Trust and Loan Companies Act. (institution)

“insurer”

“insurer” includes a government agency that provides mortgage insurance to an institution. (assureur)

“mortgage insurance”

“mortgage insurance” means an insurance policy or a guarantee against default on a residential mortgage. (assurance hypothécaire)

“point of service”

“point of service” means a physical location at which an institution issues or initiates the issuance of a residential mortgage through a natural person. (point de service)

“residential mortgage”

“residential mortgage” means a loan made in Canada on the security of residential property that has four or less residential units. (hypothèque résidentielle)

2. These Regulations do not apply in respect of an institution that has obtained mortgage insurance from an insurer if neither the institution nor any of its affiliates charges borrowers an amount for that insurance.

3. Any information that is required to be disclosed by an institution under these Regulations must be disclosed in language, and presented in a manner, that is clear, simple and not misleading.

4. Every institution that provides residential mortgages to borrowers and charges them an amount for mortgage insurance must

• (a) maintain and make available at each of its branches or offices and at each of its points of service where residential mortgages are offered in Canada and on each of its websites through which residential mortgages are offered in Canada, the information in respect of mortgage insurance referred to in sections 5 and 6, paragraphs 7(a), 8(a) and 9(a) and subparagraphs 10(a)(i) and (b)(i) for each insurer with which it has entered into an arrangement to receive payments or benefits;

• (b) provide to customers and to the public, on request, the information referred to in sections 5 and 6 and paragraphs 7(a), 8(a) and 9(a) and subparagraphs 10(a)(i) and (b)(i) for each insurer with which it has entered into an arrangement to receive payments or benefits; and

• (c) provide to each borrower that the institution charges for mortgage insurance, in a separate document, at or before the time that they enter into the mortgage agreement,

  • (i) the information referred to in sections 5 to 10 as it applies to that particular borrower,

  • (ii) the total of the amounts referred to in paragraphs 7(a), 8(c) and 9(c) and subparagraphs 10(a)(iii) and (b)(iii) as they apply to that particular borrower, and

  • (iii) the total of the percentages referred to in paragraphs 7(b), 8(b) and 9(b) and subparagraphs 10(a)(ii) and (b)(ii) as they apply to that particular borrower.