Marginal note:Restriction on charges to borrowers
418.1 (1) Subject to any regulations made under subsection (2), a bank that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the bank of the insurance or guarantee.
Marginal note:Regulations
(2) The Governor in Council may make regulations
(a) respecting the determination of the actual cost to a bank for the purposes of subsection (1);
(b) respecting the circumstances in which a bank is exempt from the application of subsection (1);
(c) respecting, in relation to insurance or a guarantee against default on a loan made by a bank in Canada on the security of residential property,
(i) the arrangements into which the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not enter, and
(ii) the payments or benefits that the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not accept from an insurer or the insurer’s affiliates; and
(d) respecting any other matters necessary to carry out the purposes of subsection (1).
(3) [Repealed, 2018, c. 27, s. 320]
- 2009, c. 2, s. 270
- 2012, c. 5, s. 35(E)
- 2018, c. 27, s. 320
- Date modified: