TERMS & CONDITIONS
These Terms and Conditions form an integral part of the Sunlite Mortgage Corporation Loan Agreement which shall collectively be referred to asthe “Agreement”. In this Agreement: “you” and “your” refer to the
Borrower. Where there is a Co-borrower named, the same terms refer to the Borrower and the Co Borrower and all obligations under this Agreement shall be joint and several. “Us”, “We” and “Our” refer to Sunlite Mortgage Corporation
and its authorized personnel, agents, contractors, designates, subsidiaries or assigns. Unless otherwise agreed to and authorized by us in writing, all payments due under or in connection with this Agreement shall be due to Sunlite Mortgage Corporation and will commence on the First Payment Date. You hereby agree to make all payments provided for herein when due.
1.Acceptance - This Agreement is subject to approval by us. We reserve the rightto decline this Agreement at any time prior to advancing the Loan Amount. Ifwe do not acceptthe Agreement, we will send you notice of our
decision to the Broker/Agent that submitted the application to us and we will have no further obligation to you. Ifwe accept the Agreement, we will require you to complete the Identity Verification (instructions to be provided) after which
wewill credit the Loan Amount to your bank account.
2. Collateral - You acknowledge thatthe purpose ofthis Loan is to invest in orrefinance your investment in chattels for and fixtures attached to the property located atthe Address on the front page ofthis Agreement. You
acknowledge that this Loan is secured by all fixtures attached to the property located atthe Address on the front page ofthis Agreement, including but not limited to (as applicable) the furnace, the air conditioner, roof, light fixtures,
central vacuum, water softener, all the windows and all the doors, which are owned by you (“Fixtures”). Furthermore, you acknowledge that this Loan is secured by all moveable personal property, or chattels, owned by the loan applicants and
located at the Address on the front page ofthis Agreement, including but not limited to the stove, fridge, patio furniture, washing machine, dryer or other movable personal property which are owned by you (“Chattels”). Collectively, the
Fixtures and the Chattels are the Collateral for this Loan (“Collateral”), and you acknowledge that we may register security interests in the Collateral, including a Notice of Security Interest against the Address and a Personal Property
Security Interest under the Personal Property Security Act for each person on the front page ofthis Agreement.
3. Payments, Fees & Default Charges - You agree to pay us the Total Obligation by making Twice Monthly Payments on the 1st and 15th of each month during the Repayment Term, along with the Balance Owing at End of Twice
Monthly Payments to be paid at the same time as the final Twice Monthly Payment. The Repayment Term ofthis Agreement will start and interest will begin to accrue on the Loan Advance Date and continue throughout the entire Repayment Term. The
interest that will accrue between the Loan Advance Date and the First Payment Date is shown as item 9 in the Loan Disclosure Statement, and that amount will be retained by us and has been added to the Total Amount Financed (Loan Balance),
meaning that compound interest is charged on this Partial Month Interest amount. If any payment is dishonoured during the Repayment Term, you agree to pay a $150.00 returned payment charge in addition to the amount that was rejected and an
additional fee of $25.00 ifwe mail you a reminder of your dishonoured payment. Repeated payments that are dishonoured during the Repayment Term will result in additional fees for each subsequent payment that is dishonoured or reminder mailed to
you by us. Any amounts past due are also subject to an overdue interest rate of 0.093485% per day, compounded monthly, (39.998% effective annual rate) without further notice. Your obligation to pay in full all amounts due under this Agreement
is absolute and unconditional under all circumstances and is not subject to abatement, reduction or set-off for any reason. Each payment you make will be applied first to any outstanding fees, second to accrued interest and third to principal
due, fourth to any outstanding costs and the balance, if any amount is remaining, to reduce the Loan Balance. On default, all moneys received by us may be applied to the obligations then owing by you as we, in our sole discretion, may
determine. All applicable taxes will be in addition to all applicable payments. Ifwe fund you a higher loan amount than the loan amount requested you agree to repay the difference to us. You may call our customer service department, at
(647)-643-0024 to obtain information such as the first payment date, payout balance and other contract terms. We may charge an administrative fee, payable twice monthly by you.
4. Pre-Authorized Debit (PAD) - The following terms will apply to your PAD: (a) you hereby authorize us to debit the bank account identified on the cheque you delivered to us for all Payments required to be made under
this Agreement; (b) you acknowledge that this PAD is personal; (c) the account will be debited on the 1st and 15th business day of each month; (d) this authority shall remain in effect until 30 days after you give us written notice to cancel
it; (e) you have certain recourse rights if any debit does not comply with this paragraph. For example, you have the right to receive reimbursement for any debit that is not authorized or is not consistent with the terms ofthis PAD Agreement
(To obtain more information on your recourse rights, contact your financial institution or visit https://www.payments.ca/ .): (f) you can obtain more information about your right to cancel (including a sample cancellation form) and about your recourse
rights, from your financial institution or at https://www.payments.ca/ ; (g) you hereby waive your right to receive pre-notification of the amount of the PAD and agree that you do not require advance notice of the amount of PADs before a debit is
5. Joint and Several - If more than one person signed this Loan Agreement as Borrower and Co-Borrower, the obligations set out in it are joint and several and can be enforced against either or both of you (irrespective
of which one of you provides a PAD and/or Collateral). Each of the Borrower and Co-Borrower are entering into this Agreement as a principal and not as a guarantor or other surety. Where the Borrower is married, each Spouse/Common Law Spouse
must complete the Loan Agreement as Borrower or Co-Borrower. A Spouse/Common Law Spouse means a resident person who is legally married to the Borrower and continuously resides with the Borrower or who is not married to the Borrower but is
living in a conjugal relationship and has been continuously residing with the Borrower.
6. Lending Fee - The Lending Fee disclosed in this Agreement is earned and kept by us as at the Loan Advance Date. When applicable, any commission paid to a third party who assisted with the loan application will be
paid by us out of your Lending Fee. We will not pay a contingent or incentive commission. The loan disclosure will always assume no commission is paid.
7. Security Registration - You hereby grant us a security interest in the Collateral as security for payment of the amounts owing by you to us under this Agreement. The attachment of security interest has not been
postponed. You grant us the right to register a security interest under this Agreement against you and against title to the lands where the Collateral is to be located. We will charge a registration fee to register our security interest. Unless
prohibited by law, you waive your right to receive a copy of such registration where required and you appoint us as your lawful attorney for registration and receipt of notice. If we are requested to postpone our security interest at any time
to another lender during the Repayment Term of the Agreement, we will charge a postponement fee to either approve or decline such a request. We will also charge a discharge fee to discharge our security interest under this Agreement once you
have paid us all amounts owing under the Agreement.
8. Insurance - You must keep the Collateral and the Address insured against loss or damage and you give us the right to receive proceeds of all insurance covering the Collateral in the event that the Collateral is
damaged, lost or destroyed. You may purchase the insurance from any insurer who may lawfully provide the required insurance and you may purchase the insurance directly from the insurer or through an agent of your choice. The loss, destruction
or damage of the Collateral does not exclude you from making Payments unless the insurance proceeds paid to us satisfy in full the Loan Balance then owing.
9. Default - You will be in default under this Agreement if any or the following occurs: a) should you move from the Address or sell the property; b) you fail to pay any amount under this Agreement when due; c) you fail
to keep the Collateral free from new registered mortgage charges and all liens including but not limited to liens due to municipal, personal and excise tax arrears and other security interests, except those in our favour; d) you become
bankrupt, or insolvent or file for bankruptcy or insolvency; e) the Collateral is damaged, destroyed or lost; f) you breach any obligation under this Agreement or a related agreement with us or any mortgage agreement associated with the
property located at the Address on the front page of this Agreement; or g) you provide us with untrue, inaccurate, incorrect or misleading information and/or confirmations. If during the Repayment Term we are required to issue a notice of
default, you agree to pay a notice of default fee in each instance.
10. Suitability - This Agreement may result in you having a higher Gross Debt Service (“GDS”), Total Debt Service (“TDS”) ratio and other factors than a mortgage that would follow Residential Mortgage Underwriting
Practices and Procedures (the “Guideline”) setting out the expectations of the Office of the Superintendent of Financial Institutions Canada (“OSFI”) for prudent residential mortgage underwriting, and is applicable to all federally-regulated
financial institutions (“FRFIs”) that are engaged in residential mortgage underwriting and/or the acquisition of residential mortgage loan assets in Canada. Since this loan has more flexibility you may be at risk of financial hardship due to a
reduced amount ofcash flow and / or disposable income and/or collateral than you would have had if you had taken a mortgage with lower payments, fees, and / or if you had fewer monthly obligations or more stringent qualifications for approval.
In turn, you confirm that the terms of this Agreement are suitable for your specific needs, circumstance and situation and that you understand the risk of this loan including the risk and consequences of falling into arrears or default during
and/or at the end of the Loan Repayment Term. You confirm that the information you provided to us is full, true, accurate, correct and not misleading and does not omit any fact that would make it misleading. Furthermore, you confirm that there
have been no and you do not anticipate any material changes in income, credit score, Collateral or liabilities thereby allowing us to accurately calculate the appropriate GDS, TDS and loan to value ratio in assessing the risk of default or loss
and your ability to repay the loan without default.
11. Remedies - If you are in default under this Agreement, we may do one or more of the following: i) terminate this Agreement and require you to immediately pay us the remaining Loan Balance and all other amounts due
under this Agreement together with any other administrative costs or fees incurred by us to collect amounts due by you; ii) add to your Total Obligation any default charges specified herein; iii) sue you for what you owe; iv) take possession of
the Collateral according to applicable law; and (v) exercise any other remedy available to us, whether at law, in equity or otherwise. Where we have taken possession of the Collateral, you will be sent the required written notice which will
explain how you may regain possession of the Collateral. If you do not do so, we will be entitled to dispose of the Collateral at a public or private sale, or at an auction. Where deficiency has resulted from such a sale, we may commence legal
proceedings for recovery of the deficiency, if permitted by applicable law. We may charge you all reasonable costs we incur (including but not limited to legal costs, collection agency costs, applicable taxes and incremental internal costs) in
collecting or attempting to collect a payment you owe under this Agreement and/or to enforce our security under this Agreement or to protect the Collateral taken in security if you are in default under this Agreement. In addition to the rights
specified here, we also have all rights, remedies and powers of a secured party under the Personal Property Security Act, and under other relevant legislation. All remedies are cumulative and not alternative.
12. Prepayment - You shall have the right to repay the Loan in whole or in part, at any time without penalty. Any partial pre-payment shall not reduce the Monthly Payment Amount. If you prepay the Loan Balance in full
at any time, you shall be entitled to any refund or credit from us on the cost of borrowing as may be required by, and calculated pursuant to, applicable law.
13. Electronic Version of this Agreement - We will retain a copy of this Agreement in electronic form only. You agree that a facsimile and/or an imaged copy is enforceable in a court of law.
14. Assignment - We may assign, at our sole discretion at any time and without the consent of or notice to you, as and by way of security or absolutely, all or any portion of our right, title and interest in this
Agreement, the Collateral described herein and in the pre-authorized or other payment authorization granted by you, including as security for Loan or other financing arrangement; for purposes of this section, “we” shall include any such
assignee (“Assignee”). You hereby consent to the delivery by us to any prospective Assignee of such information, including personal information, concerning you as may be in our possession. You may not assign this Agreement without our prior
15. No Waiver - No waiver or delay by us from taking action for any reason under any provision of this Agreement shall constitute a waiver of any other provision, nor shall any waiver by us of any provision of this
Agreement constitute a continuing waiver unless otherwise expressly provided. To the extent allowed by law, we may take other action not described in this Agreement and by doing so we will not lose our rights under this Agreement.
16. Extension & Renewals - If the Amortization Term is longer than the Repayment Term, we have the option, upon sixty (60) days prior written notice to you, to offer to renew this Agreement at the end of the Loan Term
on the same Terms and Conditions as set out herein. If we choose to offer to renew your Loan, we will provide you with (1) the final date of the existing Repayment Term, (2) the new Total Amount Financed, the new Repayment Term, (4) the new
Amortization Term, (5) the new Annual Fixed Interest Rate, (6) the new Annual Percentage Rate, (7) the new Total Twice Monthly Payment, (8) the new Total of All Twice Monthly Payments, (9) the new Balance Owing at End of the Repayment Term
(Extension & Renewals), (10) the new Total Obligation, (11) the new Total Cost of Borrowing for the new Repayment Term, (12) the new Administrative Fee, and (13) the Renewal Fee. If we send you the notice, you continue to have the right to
repay the remaining Loan Balance at the end of the Repayment Term. If we send you the notice and you have not paid the Balance Owing at the End of the Repayment Term, you will be deemed to accept our offer to extend and you agree to pay a
Renewal Fee as disclosed in the notice.
17. Miscellaneous - This Agreement will be governed by the laws of the Province of Ontario and the federal laws of Canada applicable therein. This Agreement contains the entire agreement between you and us. You
authorize us to correct any clerical errors to the Loan Agreement or Loan Disclosure Statement without your acknowledging same.
18. Consent to Disclosure and Sharing of Personal Information and Credit Investigation - You authorize us and our assigns to use and
disclose your personal information above to confirm your identity, to evaluate your creditworthiness, to administer this Agreement, to perform internal statistical analysis, to assign or securitize any amounts payable by you under this
Agreement, for any reason as deemed necessary by us at our sole discretion, or as otherwise required or permitted by law. You hereby authorize us to conduct financial and credit investigations for purposes of approval, administration and
enforcement of this Agreement or any judgment obtained by us as a result of any default hereunder and to obtain any information required from any source and each source is hereby authorized to provide such information to us. This includes but
is not limited to us obtaining information from any credit or depository facility. We may obtain such information at any time before or during the Term or after termination of the Agreement in the event any monies remain owing to us. This
includes PFS One Corporation (our wholly owned subsidiary with the trade name Sunlite Mortgage and registered as a Mortgage Brokerage and Mortgage Administrator with FSRA #12898 and #13066 respectively). This clause shall survive the
Repayment Term or termination of this Agreement. This clause shall survive if we decline your loan application. You agree to receive communications from us containing exclusive events, product and service updates and promotions. All matters