Buyers : Tips

The mortgage payment protection

1. The protection: La Capitale Real Estate Network, hereinafter referred to as La Capitale, hereby guarantees the borrower, in the event that the latter shall lose his/her job, reimbursement of payments equivalent to his/her monthly mortgage payments (capital and interest only), subject to a maximum of fifteen thousand dollars ($15,000).
   
   
2. Loss of employment income: Subject to the exclusions and conditions of eligibility set out hereunder, loss of employment income shall, for the purposes hereof, mean the loss of more than 50 % of the employment income of the borrower, excluding compensation paid to elected public officials. In instances of more than one eligible borrower, coverage here-under shall apply only to that portion of total employment income lost. In the case of a building comprising more than one apartment, only the mortgage payments for the apartment occupied by the borrower shall be covered hereunder.
   
   
3. Borrower eligibility: To be eligible for coverage hereunder, the borrower must satisfy the following conditions:
   
   • - beaged between 18 and 65 years
     
     
   • - have been gainfully employed for at least twelve consecutive months in a job providing thirty (30) hours or more of work per week, at the time coverage hereunder came into force
     
     
   • - be a Canadian citizen and a Quebec resident from the date coverage hereunder came into force or have resided in Quebec for at least three (3) years
     
     
   • - be a client of La Capitale Real Estate Network or one of its franchisees, for the transaction involving the property to be mortgaged.
     
     
4. Loan eligibility: To be eligible for coverage hereunder, each loan must satisfy the following conditions:
   • - be secured through a mortgage representative duly approved by La Capitale Real Estate Network;
     
     
   • - be amortized over a period of ten (10) years or more;
     
     
   • - be granted with respect to a residential building of one (1) to fíve (5) apartments, at least one (1) of which is to be occupied by the owner at the time of the loss of income;
     
     
   • - be granted for a minimum closed term of one (1) year.
     
     
5. Exclusions: Coverage hereunder shall not apply whenever the loss of employment is due to one or other of the following:
   • - disability;
     
     
   • - voluntary resignation or retirement;
     
     
   • - pregnancy, childbirth, miscarriage;
     
     
   • - abusive use of medication, drugs or alcohol;
     
     
   • - dismissal for reason of dishonesty, fraud, conflict of interest, refusal to carry out normal job functions, voluntary inappropriate or criminal conduct;
     
     
   • - war, riot, civil uprising, nuclear accident;
     
     
   • - recurrence of circumstances known to the borrower that would have given rise to a claim hereunder in the twelve (12) month period immediately pre-ceding the coming into force hereof;
     
     
   • - labour dispute, strike, lockout;
     
     
   • - termination of employment arising from a layoff program initiated by one's employer prior to the coming into force hereof;
     
     
   • - dismissal, layoff or termination of employment for any reason whatsoever if the borrower directly or indirectly exercises control over the company employing him/her or if theborrower is related (common law spouse includ-ed) to the person who directly or indirectly exercises control over the enterprise employing him/her;
     
     
   • - borrower covered under another mortgage protection plan.
     
     
6. Effective date: Coverage provided hereunder shall take effect upon the date the deed of sale is signed before a notary.
   
   
7. Term of coverage: The maximum term of coverage shall be twelve (12) months from the date of the notarized deed, except if the loss of employment income occurs in the last three (3) months of the aforementioned term in which case the borrower shall be entitled to maximum coverage of three (3) months duration.
   
   
8. Termination of coverage: Coverage hereunder shall terminate automatically whenever the borrower recovers 75 % of his/her original employment income or at the end of the term of twelve (12) months from the date of the notarized deed, except in the event of an extension granted in accordance with the provisions of the preceding paragraph.
   
   
9. Grace period: In the event of loss of employment income, each claim for coverage hereunder shall be subject to a grace period of thirty (30) days unless the borrower submits a subsequent claim within ninety (90) days of a preceding claim. If, at the end of the grace period, employment income has been restored, no payment shall be made for the grace period. If, at the end of the grace period, employment income has not been restored, payments as provided for hereunder may begin, including payment relating to any amount due during such grace period.
   
   
10. Claims: La Capitale will only reimburse mortgage payments for which they have proof of payment onfile. Claims must be submitted to La Capitale within 60 days of the loss of employment.