N.H.A. Maximum Interest Rates Regulations (C.R.C., c. 1107)

Short Title

1 These Regulations may be cited as the N.H.A. Maximum Interest Rates Regulations.

Interpretation

2 In these Regulations, Act means the National Housing Act.

Maximum Rate of Interest

• 3 (1) The maximum rate of interest per annum payable by a borrower in respect of a loan to be made under section 28 of the National Housing Act, as computed annually and not in advance, shall be,

  • (a) for a loan made in the period ending on June 30, 1969, 9 3/8 per cent; and

  • (b) for a loan made in an interest period commencing on or after July 1, 1969, 2 1/4 per cent plus the average yield on long-term bonds of Canada for all Wednesdays in the averaging period immediately preceding such interest period, calculated to the nearest 1/8 per cent or, if the result is equidistant from two multiples of 1/8 of one per cent, to that multiple thereof that is the lower.

• (2) In this section,

  average yield on long-term bonds of Canada

  average yield on long-term bonds of Canada means the simple arithmetic mean of the Wednesday closing midmarket yields, as computed from the yields published by the Bank of Canada, on all long-term bonds of Canada; (rendement moyen des obligations à long terme du gouvernement du Canada)

  averaging period

  averaging period means a period of four weeks ending on the last Wednesday on or before December 31st, March 31st, June 30th or September 30th; (période d’établissement de moyennes)

  interest period

  interest period means a period of three months commencing on January 1st, April 1st, July 1st or October 1st; (période d’intérêt)

  long-term bonds of Canada

  long-term bonds of Canada means marketable bonds issued by the Government of Canada payable in Canadian currency and due to mature in not less than 10 years. (obligations à long terme du Canada)

4 The maximum rate of interest payable by a borrower in respect of a loan to be made under the Act, shall be

• (a) if the loan is made under section 15, 25, 43, 45.2, 47 or 51 of the Act, 17 1/2 per cent per annum, computed semi-annually and not in advance; and

• (b) if the loan is made under section 27.5, 34.1 or 42 of the Act, 16 per cent per annum, computed semi-annually and not in advance.