Terms and Conditions

For Personal Banking customers

CAP Terms and Conditions for requests July 1 2020 – September 30th, 2020

You agree to the following terms and conditions:

 

DEFINITIONS

The following definitions apply to these Terms and Conditions:

“Eligible” refers to any individual qualified to participate in the Customer Assistance Program (CAP) for COVID-19. You may not be Eligible if your Loan is 90 or more days in arrears, in which case you should contact Scotiabank for further information.

“You” refers to an Eligible customer of The Bank to whom a loan and/or credit facility is granted and includes any co-borrowers and/ or guarantor(s) of any such facilities. 

“Applicable Period” means from July 1st, 2020 to September 30th, 2020 inclusive.

“Loan” means Mortgages and Real Estate Secured Loans, Scotia Plan and Auto loans and all other types of personal loans we granted to you including, without limitation, bridging loans.

“Deferred Amount” means the accrued interest, principal and insurance (as applicable) associated with your Loan that has been deferred and not paid during the Deferral Period.

“We” “The Bank” or “Scotiabank” mean, as applicable The Bank of Nova Scotia and its branches and subsidiaries and affiliates operating outside of Canada including, but not limited to, its agencies and branches in Antigua, Guyana, Scotiabank (Bahamas) Limited, Scotiabank (Barbados) Limited, Scotiabank (Belize) Ltd., Scotiabank & Trust (Cayman) Ltd, Scotiabank (Turks and Caicos) Ltd., and Scotiabank Trinidad and Tobago Limited and The Bank of Nova Scotia Jamaica Limited.

ELIGIBLITY

1.            You represent and warrant that all information provided to Scotiabank in connection with your Loan deferral request is correct and true.

2.            You have asked Scotiabank to defer your regular Loan payment(s) (consisting of principal and interest) and insurance premium (as applicable) due and payable under your Loan(s).  Requests for participation in this program shall only be accepted by the Bank during the Applicable Period.

3.            Your request has to be approved.  Once it is approved, your payments will be deferred for a period of one (1) month, and may be extended at the discretion of the Bank, or until your loan maturity date, whichever comes first (“the Deferral Period”).

4.            The Deferral Period commences with effect from the date you confirmed your participation in this CAP program.

5.            Your automatic loan payments will recommence at the end of the Deferral Period. During the Deferral Period, if you have asked Scotiabank to defer your automatic loan payments and would like to make a payment to your loan, you may visit your branch and make a non-standard principal payment.

6.            You acknowledge that insurance premiums related to the Loan, if applicable, will also be deferred   and will be collected after the Deferral Period.   Your insurance coverage will continue with the same coverage and amounts as provided in your Certificate and Schedule of Insurance during the Deferral Period.  Please review your Certificate of Insurance for full details about your creditor insurance coverage.

7.            During the Deferral Period, the following will apply:

a.     For Scotia Plan Loans and Auto Loans

i.       During the Deferral Period, interest will continue to accrue on the full principal balance of the Loan.

ii.     For loans maturing after December 31st, 2022, the accrued interest from the Deferral Period (together with any deferred insurance premium amount, where applicable) will be paid over a 24-month period starting January 2021, or deferred accrued interest and insurance premium amount, where applicable, may be repaid via lumpsum at any time prior to this period. The maturity date will be extended by the number of deferred payments and principal payments will be made each month until the new maturity date.

iii.    For loans maturing earlier than December 31st, 2022, the accrued interest over the Deferral Period (together with any deferred insurance premium amount where applicable) will be payable as a lump-sum on or before loan maturity. The maturity date will be extended by the number of deferred payments and principal payments will be made each month until the new maturity date.

iv.   There will be no interest on deferred interest

v.     For customers whose payments are made as a deduction at source or salary deduction, arrangements will have to be made by you to cover your increased payment over the 24-month period. Please contact us to settle proposed arrangements.

b.    For Mortgages and Real Estate Secured Loans including Home Builder Loans

i.         During the Deferral Period, interest will continue to accrue on the full principal balance of the Loan.

ii.        For loans maturing after December 31st, 2022, the accrued interest from the Deferral Period (together with any deferred insurance premium amount, where applicable) will be paid over a 24-month period starting January 2021, or deferred accrued interest and insurance premium amount, where applicable, may be repaid via lumpsum at any time prior to this period. The maturity date will be extended by the number of deferred payments and principal payments will be made each month until the new maturity date.

iii.      For loans maturing earlier than December 31st, 2022, the accrued interest over the Deferral Period (together with any deferred insurance premium amount where applicable) will be payable as a lump-sum on or before mortgage discharge. The maturity date will be extended by the number of deferred payments and principal payments will be made each month until the new maturity date.

iv.      There will be no interest on deferred interest.

v.       For Home Builder Loans, deferred interest is payable in full at the end of the Deferral Period

8.            Subject only to the changes set out above, all other terms and conditions and provisions of Your original contract with the Bank for the Loan remain in effect, and that the above changes to the terms and conditions of your Loan are not intended to invalidate any interest in or any security, right, charge or lien that the Bank holds for the security granted, nor is it intended to affect any of the Bank’s rights for the recovery of any amounts owing under any original contract with the Bank for your Loan.

You also agree to execute any further or supplemental document or instrument required to preserve those rights should they be requested by the Bank.

9.            Except as set out in these terms and conditions, all provisions of your Loan or Mortgage (including those in your personal credit agreement, charge and any renewals), continue to apply. 

10.          By submitting your deferral request, you certify that:

·         You consent to the collection, use, disclosure and storage of your personal information by Scotiabank in accordance with our Privacy Policy

Please see below examples of how Interest is calculated

Example 1 – On January 2021, the remaining term on your loan is greater than 24 months

To see how it all works let’s consider for example a 60 months loan of $10,000 with 48 months to go.

 

LOAN SUMMARY

Loan amount

$10,000.00

Annual interest rate

10.00%

Loan period in years

5

Number of payments per year

12

Start date of loan

6/15/2019

Scheduled payment

$212.47

Scheduled number of payments

60

Actual number of payments

60

Total early payments

$0.00

Total interest

$2,748.23

Loan Maturity Date

6/15/2024

·         The customer is adhering to the CAP program and will skip scheduled payments for July 15, 2020.

·         The new maturity date of the loan will now be July 15, 2024 (extended by 1 month)

As of June 15, 2020 the outstanding principal on the loan is $8,377.32 and no more payments will be required to service the loan for the next 1 month.

During the 1 months the loan will accrue $54.87 in interest.

Starting January 2021, the $54.87 of accrued interest will be evenly split by 24 and this will be added to your next 24 scheduled monthly payment. – So we will be adding $54.87/24 = $2.29 to each of your scheduled monthly payments which now will be $214.76 as detailed below:

Scheduled Monthly Payment:                                       $212.47

Monthly Installment of Deferred Interest Amount:              $2.29

New Scheduled Monthly Payment:                                             $214.76

After the Deferred Interest Amount is been paid off, (starting January 2023), your scheduled payment will revert to $212.47 for the remainder of your term.

Here is a timeline to recap the changes of your required loan payments relative to this example:

From

To

Scheduled Payment

Note

Before enrollment

Jun 15, 2020

$212.47

Original Scheduled payment – Already made

Jul 15, 2020

Aug 15, 2020

$0

Deferred Period

Sept 15, 2020

Dec 15, 2020

$212.47

Original Scheduled payment

Jan 15, 2021

Dec 15, 2022

$214.76

New Scheduled Payment

Jan 15, 2023

Maturity

$212.47

Original Scheduled payment

 

 

Example 2 – On January 2021, the remaining term on your loan is less than 24 months

To see how it all works let’s consider for example a 60 months loan of $10,000 with 12 months to go.

 

LOAN SUMMARY

Loan amount

$10,000.00

Annual interest rate

10.00%

Loan period in years

5

Number of payments per year

12

Start date of loan

6/15/2016

Scheduled payment

$212.47

Scheduled number of payments

60

Actual number of payments

60

Total early payments

$0.00

Total interest

$2,748.23

Loan Maturity Date

6/15/2021

·         The customer is adhering to the CAP program and will skip scheduled payment for July 15, 2020.

·         The new maturity date of the loan will now be July 15, 2021 (extended by 1 month)

As of June 15, 2020 the outstanding principal on the loan is $2,416.75 and no more payments will be required to service the loan for the next one (1) month.

During the one (1) month the loan will accrue $20.14 in interest. – This amount will be due by the end of the term of the loan and is payable anytime without penalty through the life of the loan.

If you decide to pay this interest at the end of the loan, the final loan payment looks as below:
Scheduled Monthly Payment:       $212.47

Accrued Interest:                               $20.14
Final Loan Payment:                        $232.61

Here is a timeline to recap the changes of your required loan payments relative to this example:

From

To

Scheduled Payment

Note

Before enrollment

Jun 15, 2020

$212.47

Original Scheduled payment – Already made

Jul 15, 2020

Aug 15, 2020

$0

Deferred Period

Jul 15, 2020

Maturity*

$212.47

Original Scheduled payment

* A one-time payment of $20.14 is required to be made at any time prior to maturity

By submitting your deferral request, you certify that: 

a.       There are no mortgages, encumbrances, executions or other liens registered on title to the property subject to the Mortgage since the registration of the Mortgage other than those in favour of Scotiabank; and 

b.       All borrowers (if more than one) or guarantors (if any) under the Loan(s) have consented to this payment deferral and you agree that in the event of any dispute by other borrowers or guarantors, about benefits granted under this program based on your request to defer payments, that you are liable for the amounts deferred and agree to indemnify the bank against any such claims