1. Jack obtained a mortgage from CIBC Bank to finance the purchase of his new home.  He borrowed $500,000 and the interest rate is 5.5%. The funds were advanced on October 18, 2022 and the maturity date is November 1, 2025. Jack's monthly payment of $1100 is payable on the first of each month. If Jack makes the same payment every month for 20 years, his mortgage will be paid off in full after the last payment.  

 

a) What is the term of this mortgage?  
 

b) What is the amortization period for this mortgage?
 

c) What is the interest adjustment date?
 

d) What is the date of the first monthly mortgage payment?  
 

e) Are the payments blended or non-blended? 

Q2. Leila bought a house three years ago and obtained a mortgage with ABC Bank of Canada.  At that time, she had a well paying job and could easily afford her mortgage payments.  Last year, she lost her job and in order to support herself, she arranged for another mortgage with Elmo Mortgage Lending.  She can now no longer afford her payments and is in default on both mortgages.  She also owes the Town of Aylmer $8000 for outstanding realty taxes.  The total amount now owing to ABC Bank of Canada is $390,000 and the total amount owing to Elmo Mortgage Lending is $80,000.

 

a)  Assume Elmo Mortgage Lending starts power of sale proceedings and the property is sold for $520,000. How will the proceeds be distributed?  State the exact amounts, in order of priority.
 

b)  Assume ABC Bank of Canada obtains a final order of foreclosure in a foreclosure action.  Who will own the property?  
 

c)  Assume ABC Bank obtains a final order of foreclosure in a foreclosure action. Is ABC Bank required to pay any money to the Town of Aylmer, Elmo Mortgage Lending, or Leila?  Explain your answer.  

 

Q3. Uzman wants to buy Johan's house. The purchase price is $1,000,000 and there is an outstanding mortgage in favour of TD Bank in the amount of $500,000. Uzman has $500,000 in savings to put towards the home but has been unable to find a bank or other financial institution that will lend him the money he needs to purchase the home. Explain, in detail, what options are available to Uzman for him to be able to purchase Johan's house.  

 

Q4. Sophia hired Great Garage Company to build a garage on her property in Toronto. The total contract price was $4,000. Great Garage Company obtained lumber for the garage from Lou's Lumber Limited. The lumber was delivered on October 5th, 2022, together with an invoice for $1,200, which was the total cost of the lumber supplied. Lou's Lumber Limited has still not been paid by Great Garage Company.

 

a) Can Lou's Lumber Limited sue Sophia to recover the money owing? Explain your answer.
 

b) Does Lou's Lumber Limited have any claim against Sophia's property? If so, explain, in detail, the amount of the claim and all required steps that Lou's Lumber Limited must take to protect its rights. Provide the specific dates by when Lou's Lumber Limited must take each step you identify.

 

Q5. On October 3, 2022, Carlos won his lawsuit against Farah for breach of contract and the Small Claims Court judgment awarded him damages in the amount of $15,000. Farah does not have the money to pay Carlos because she is saving up to buy a townhouse in Newmarket early next year. Referring to the appropriate legislation, discuss what Carlos should do if he wants to enforce the judgment against Francesca.