Short Title
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 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 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 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 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.
note
Federal laws of Canada reproduced under the Reproduction of Federal Law Order (SI/97-5); not the official version. Source: Justice Laws Website.