Personal lending products (lines of credit, personal loans and mortgages)

Transaction fees

Transactions made directly from the line of credit:

Notwithstanding the foregoing, if you choose to perform transactions directly in your line of credit, the usual bank account transaction fee will be charged to your line of credit.

The main transaction fees are described in Section G “Other Fees” in the Summary.

However, other fees may apply depending on the type of transaction. These fees are described in the fee guide provided to you when your account is opened. These fees are subject to change.

Special transactions

You can obtain advances under your line of credit by carrying out certain transactions (such as online transfers) in your line of credit account at no additional charge, or through specific transactions (such as cheques, transfers to another person and debit card purchases) for an additional fee.

Details on these special transactions and applicable fees are outlined in the Fee Guide for Personal Banking Solutions.

Annual fee

You must pay the following annual fee:

$12.00 per year, payable in 12 monthly instalments of $1 charged to your line of credit each month on your statement date.

(…) The client undertakes to pay the periodic payment to the Bank no later than twenty-five (25) days after the date of issue indicated on the account statement sent to the client.

(…) The client authorizes the Bank to automatically deduct from transaction account No. (…) an amount equal to the periodic payment and/or any other amount owed to the Bank from time to time, on the 26th day of each calendar month (…)

Each month, you must make a minimum payment within 21 days of your statement date. The minimum payment is mandatory.

The minimum payment represents the accrued interest charged to your line of credit.

Your minimum payments are made by pre-authorized debit to the bank account of your choice.

Recurring optional payments

You can make recurring optional payments in the amount of your choice. Your optional payments are made each month by pre-authorized debit from the bank account you selected on the Pre-Authorized Debit form.

Your optional payments must be made within 21 days of your statement date. To pay off your line of credit faster, your recurring optional payment must be debited on the business day before, on the same day as or on the day after your minimum payment is debited. The minimum payment and the optional payment will both be debited.

If your optional payments are debited more than one business day prior to your minimum payment, the debits will be made as follows:

• If the amount of the optional payment is higher than or equal to the minimum payment amount, only the optional payment will be debited.
• If the amount of the optional payment is less than the minimum payment amount, the optional payment will be debited as scheduled, and an amount to cover the difference between the minimum payment and the optional payment will be debited on the scheduled date for the minimum payment debit.

For example:

• Mandatory minimum payment amount for June: $100
• Date of minimum payment debit: July 15
• Date of recurring optional payment debit: July 10
• Amount of recurring optional payment: $75

On July 10, the optional payment of $75 will be debited from your bank account, and on July 15, the amount of $25 will be debited to cover the amount of the outstanding minimum payment.

The conditions applicable to pre-authorized debits are set out in another document that you must sign.

Additional payments

You may make additional payments at any time and pay the balance of your line of credit in full or in part in addition to the minimum payments and recurring optional payments. These additional payments can be made through deposits to the line of credit account.

An additional payment may reduce the minimum payment amount for a period if it is made prior to the minimum payment. The same rules apply as for optional payments (…): the amount of the additional payments is in addition to the amount of the optional payments.

You can contact the National Bank Client Experience Centre (CEC) to:

• change or add a bank account for pre-authorized debits;
• set the pre-authorized debit date earlier; or
• make recurring optional or additional payments in the amount of your choice.

Transactions in a foreign currency in the account linked to the line of credit are converted into Canadian dollars as follows:

Transactions using your debit card
At the rate and by the conversion method determined by the network used. We apply a 2.5% charge to the conversion rate used by this network. The conversion takes place no later than the date we post the transaction to your account.

Transactions made by cheques drawn on your account
At our exchange rate when the cheque is converted. Our exchange rate is available at nbc.ca/exchangerate. In addition to the exchange rate, we apply a 3% charge on the converted amount.
Fees will also apply for each cheque drawn on your account in a foreign currency. For more information, please refer to Section 7. Fee Guide.

You must verify your statements within 30 days

You must verify all the information on your statement. You must notify us of any errors or irregularities in your statement information within 30 days of the date of each statement.

You will not be able to dispute the information contained in a statement if you do not notify us of any errors or irregularities within this 30-day period. At the end of this period, the information contained in your statement is considered final and accurate, with the exception of errors and irregularities reported to us within this period and unauthorized payments and deposits made by endorsements.

The Bank may change the amount of the periodic payment on notice to the client and reserves the right to demand, at any time, repayment of the principal in whole or in part.

The Bank reserves the right to amend the provisions hereof at any time by means of a simple notice sent to the client, without prejudice to the Bank’s right to notify the client of changes to the prime rate of the personal line of credit in the manner set forth herein.

These fees (administration/transaction fees) […] may be modified without notice.

We can:

• change the amount of the annual fee
• change the interest rate and fees
• add new fees

We will then send you a notice 30 days prior to the effective date of the change stating:

• the new or amended clause in your agreement
• the old version of the amended clause
• the effective date of the change

We can also:

• increase the amount of the minimum payments, including by adding new amounts to your minimum payments
• modify the nature and terms of the optional services and special transactions offered, including fee amounts
• change the way you can access your line of credit, as well as cancel or suspend your right to obtain new advances
• reduce your credit limit
• change the way you make your payments and the date of your payments
• apply for a bond or security to secure your obligations under your line of credit
• make any other changes to this agreement

If the amendment results in an increase in your obligations or a reduction in our obligations, you have the right to refuse the amendment and cancel the agreement, without charge or penalty. You must send us a notice within 30 days of the effective date of the amendment in order to benefit from this right.

We will send you a 30-day notice prior to the effective date of the amendment stating the information in clause 6.1. This notice will state your right to refuse the amendment and cancel the agreement without charge or penalty, if applicable.

Your line of credit is provided at our sole discretion. We may terminate your line of credit in the following situations:

• If you do not provide us with additional information about your personal financial situation when requested by us
• For a Student Line of Credit:
  • if you are no longer a student
  • if you fail to provide us with annual proof of your enrolment as a full-time or part-time student
• At any time

We will then send you a notice in writing and, unless we are exempted by law, a statement of account. You must repay the balance of your line of credit, including interest, within 30 days of receiving this notice.

If we choose to terminate your right to use the line of credit, we can exercise all our remedies.

You cannot deduct amounts from your minimum payments (no set-off)

Even if we owe you, you cannot reduce your minimum payments or ask that the debt be used to pay off your line of credit. Any amount you owe under this agreement must be paid in full. In other words, no set-off or deduction is possible.

Transfer of this agreement

You cannot transfer your rights under this agreement to another person, nor can you have your obligations to us assumed by another person. If you wish to do so, you must first ask for our consent.

We can refuse your application for good reason, such as if the person you want to transfer your rights to does not meet our credit requirements.

• Withdrawals (including for bill payments) or transfers at the counter: $2.00

• Withdrawals, transfers, withdrawals for bill payments: $2.50/transaction
• Bill payment service: $2.00/bill

• Additional copy of a monthly statement: $3.25
• Statement produced manually: $40.00/hour, minimum $20.00

Additional copy of your monthly account statement

• Each one-time request for an additional copy: $5.00
• Each additional copy sent monthly: $3.25

Fee for processing a notice of sale for unpaid taxes: $150.00

Cancellation fee (discharge)

• Quebec and Alberta: free
• Other provinces: $179.50

Document review fees and fees to prepare resolutions/powers of attorney for a mortgage discharge

• Alberta and Quebec: Free
• British Columbia: $75
• Other provinces: $100

Fees to prepare and register a mortgage discharge (Ontario only)

• Fees to prepare a discharge: $100
• Fees to prepare and register a discharge, including registration costs: $300

Foreign currency transactions are converted into Canadian dollars as follows:

Transactions using your debit card
At the rate and by the conversion method determined by the network being used. We apply a 2.5% charge to the conversion rate used by that network. The conversion takes place no later than the date we post the transaction to your account.

Cheques drawn on your account
At our exchange rate when the cheque is converted. Our exchange rate is available at nbc.ca/exchangerate. In addition to the exchange rate, we will apply a 3% charge on the converted amount.
Fees will also apply for each cheque drawn on your account in a foreign currency. For more information, please refer to Section 7. Fee Guide.

You must verify your statements within 30 days

You must verify all the information on your statement. You must notify us of any errors or irregularities in your statement information within 30 days of the date of each statement.

You will not be able to dispute the information contained in a statement if you do not notify us of any errors or irregularities within this 30-day period. At the end of this period, the information contained in your statement is considered final and accurate, with the exception of errors and irregularities reported to us within this period and unauthorized payments and deposits made by endorsements.

We can:

1. increase or decrease the overall credit limit
2. increase or decrease the difference applicable in the calculation of the annual interest rate
3. modify the fees indicated in this agreement
4. add new fees
5. increase the amount of the payments, including by adding new amounts to your minimum payments
6. change the way you can access your line of credit, as well as cancel or suspend your right to obtain new advances
7. change the way you make your payments and the date of your payments

We will then send you a 30-day notice prior to the effective date of the change.

End of your line of credit

Our right to terminate your line of credit
Your line of credit is provided at our sole discretion. This means we can terminate your line of credit at any time. You will then be required to pay the balance of your revolving credit as well as interest and fees.

Your right to terminate your line of credit
You can terminate your line of credit by contacting us at the number indicated on line 1 of the Cost of Borrowing Disclosure Statement. We will then close your line of credit account and cancel the debit cards and cheques that can be drawn on the account. You will be required to pay the balance of your revolving credit as well as interest and fees.

The applicable conditions and our recourse after the line of credit ends
Interest and fees will continue to accrue until the full balance of your revolving credit is paid as well as all amounts owed. Advances in the form of term loans will no longer be tied to the line of credit. The applicable terms such as the interest rate, term and payment conditions will continue as stated in the loan agreement.

If you do not pay the full balance of your revolving credit, pay all the amounts owed, or if we choose to terminate your right to use the line of credit, we may exercise all our remedies, including those resulting from a security or mortgage.

If we owe you an amount (no set-off)

Even if we owe you an amount, you cannot reduce your payments or ask that the debt be used to pay down your line of credit. Any amount you owe under this agreement must be paid in full. In other words, no set-off or deduction is possible.

The following situations also constitute a default under this agreement:

• A default under the term loan agreement for an advance in the form of a term loan
• A default under the demand loan agreement for a loan to build, renovate or otherwise improve your mortgaged property
• If you do not meet your obligations under another agreement with us

Transfer of this agreement

You cannot transfer your rights under this agreement to another person, nor can you have your obligations to us assumed by another person. If you wish to do so, you must first ask for our consent.

We can refuse your application for good reason, such as if the person you want to transfer your rights to does not meet our credit requirements.

National Bank prime rate + 7% per year

The interest rate varies with changes in the prime rate. The interest rate will be automatically adjusted on the date of each change in the prime rate.

The National Bank prime rate is the annual interest rate announced by National Bank publicly from time to time, which is used to determine the interest rates on demand loans National Bank grants in Canadian dollars in Canada. For current information on our prime rate, please refer to nbc.ca/primerate.

Since your rate is variable, it is reviewed at a certain frequency:

• If your payments are monthly, your interest rate will be reviewed on each payment date.
• If your payments are weekly or every 2 weeks, your rate is reviewed every 4 weeks.

Administration fees for a loan transferred to another financial institution

• Quebec: Free
• Nova Scotia and Prince Edward Island: $25.00
• Other provinces: $300.00

• Change in payment frequency during the term: $50.00 or $75.00
• Change in payment type (if applicable): $40.00

• Change in payment frequency (applicable only from the 2nd request): $50.00

• Statement produced manually $40.00/hour, minimum of $20.00

• Fee for processing a notice of sale for unpaid taxes: $150.00
• Fee for a copy of a previously issued statement: $10.00

• Quebec and Alberta: no charge
• Ontario: $179.50 or $395.00 (depending on the agreement)
• British Columbia: $75.00
• Manitoba: $225.00
• New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, Saskatchewan: $395.00
• Partial discharge: $250.00

Document review fees and fees to prepare resolutions/powers of attorney for a mortgage discharge

• Alberta and Quebec: Free
• British Columbia: $75
• Other provinces: $100

Fees to prepare and register a mortgage discharge (Ontario only)

• Fees to prepare a discharge: $100
• Fees to prepare and register a discharge, including registration costs: $300

The payment amount is fixed for the entire term, with the exception of the last payment, which may be lower. The portion of the payment allocated to interest varies according to the interest rate applicable to the loan.

We reserve the right to change the amount of your payment if the interest rate on your loan increases and your payment no longer allows the loan to be repaid within the term […]. In such a case, we will send you a notice containing the new terms and conditions applicable to your loan.

(Variable-rate loan)

YOUR STATEMENT

When and where your statement is sent
We send your statement once a year to your last known address on file.

Content
Your statement details the payments made during the statement period and provides you with information on the interest rate applicable to your loan as well as your loan balance. You can also see the impact of the change in the interest rate on your loan in your payment schedule.

Other fees

• Account handling fee $0.00
• Fee for returned or declined payment/late payment $65.00
• Statement produced manually $40.00/hour, min. $20.00
• Administration fees, including fees for services, transactions and any other activity related to the loan $XX.XX
• Personal property security – Discharge fee (full discharge or release) $0.00
• Personal property security – Release fee (partial) $0.00

Other fees (not included in the cost of borrowing)

• Fee for a copy of a previously issued statement or change notice $10.00

(Fixed-rate loan)
Unless the Bank makes a request for payment in advance, the borrower agrees to pay the loan in full upon death or in any of the following cases of default:

1. The borrower fails to make the required payments.
2. The borrower is insolvent, becomes bankrupt or makes a proposal under the Bankruptcy and Insolvency Act or similar legislation.
3. The bank account(s) or registered account(s) held by the borrower at the Bank are seized through government legal or administrative proceedings.
4. If the security given to the Bank ceases to be in force or if the borrower is in default by virtue of a real estate mortgage.
5. For an RRSP loan, if the borrower closes or requests the transfer of all or part of the RRSP to which the borrowed amount was contributed.

(Variable-rate loan)
The borrowed amount may be partially or fully repaid without penalty at any time prior to maturity.

You agree to pay the loan in full in accordance with this agreement. The entire loan will be immediately payable if any of the following defaults occur:

1. Your death.
2. You fail to make the required payments or any other obligation under the agreement.
3. Your insolvency, bankruptcy or proposal under the Bankruptcy and Insolvency Act or similar legislation.
4. You are in default under the mortgage agreement or if the security given to the Bank is no longer in effect.
5. As part of a loan application or the agreement, you make a statement that is misleading or inaccurate.
6. The bank account(s) or registered account(s) you hold at the Bank are seized through government legal or administrative proceedings.
7. In the case of an RRSP loan, you request to close or transfer the RRSP to which the borrowed amount was contributed.

(Fixed- and variable-rate loans)

Non-compliance with loan conditions

You are in default when:

• You do not pay an amount on the date it is due.
• You do not comply with the obligations set out in this agreement, or in the guarantee agreement, if applicable.
• One of the statements made in this agreement or at the time of the loan application is incorrect.
• You do not meet your obligations under another agreement with us.
• You become insolvent or bankrupt or wind down your business.
• If applicable, you sell, assign, mortgage, lease or dispose of any personal property given as security without our prior written consent.
• If applicable, the movable property given as collateral is destroyed, lost or concealed outside the province or territory where it is expected to be located for a period of more than 30 consecutive days.
• If applicable, the movable property given as collateral is seized or is subject to recourse by a creditor, receiver or any person performing similar functions.

(Variable-rate loan)

To the extent permitted by law, the Bank may, at its sole discretion, amend or supplement any provision contained in this document if a written notice setting out the changes is mailed to you at your last known address within at least 30 days. If within 30 days of the notice being mailed, you have not repaid your variable-rate personal loan, we will consider that you have accepted the changes described in the written notice.

(Fixed- and variable-rate loan)

We may change the fees in this agreement or add new fees by providing you with 30 days’ notice. You agree to pay these fees on the transaction date at the rate applicable at the time.

If we owe you an amount (no set-off)

Even if we owe you, you cannot reduce your payments or ask that the debt be used to pay your debt in full.

Any amount you owe under this agreement must be paid in full. In other words, no set-off or deduction is possible.

Assignment of this agreement

We may, without your consent, assign to any person the amounts due to us under the loan, with or without the benefit of the rights set out in this agreement.

Furthermore, you may not transfer our rights under this agreement, including by subrogation (Quebec), without our prior written consent. In addition, you may not assign your rights under this agreement without our prior written consent.

This agreement is legally binding on our successors and assigns, as well as on your heirs and legal representatives.