9 Jul

Mortgage Terms: Can a bank cancel your mortgage after it is registered?

General

Posted by: Leonore Claypool

Who owns your home?  If you have a mortgage then you and the bank are partners.   After the mortgage papers are signed and it is regisetered at the land titles office they still have a lot of say about your home.  In fact, those terms and conditions really matter.   A retired school teacher living in Sudbury, Ontario found out the hard way.

Robert Mc Ilvenna was told by a federal court judge that the Canadian Human Rights Commission did not err in dismissing his discrimination claim against Scotia for calling in his mortgage – despite his status as a licensed medical marijuana grower. The homeowner/mortgagee, Robert McIlvenna alleged that the only reason for the demand was “because the Bank has learned that there is cannabis growing on the property.” McIlvenna alleged the growing of approved medical marijuana was taking place because his son’s disabilities required the drug’s use.

The bottom line is that Scotiabank exercised its contractual right to call the mortgage because McIlvenna had violated terms which affected the value of the home and the equity position. And the bank won.  See article http://business.financialpost.com/2013/06/26/scotiabank-pulls-mortgage-from-medical-marijuana-user/  So the moral of the story is don’t assume you have full rights to your home because as long as you have a mortgage your bank is your partner.  Know and understand the mortgage terms and conditions.  Every bank, credit union and mortgage company has a unique set of contract terms and conditions.