What is the maximum rate and duration of the loan?

Repayment term of a loan agreement

Repayment term of a loan agreement

The repayment term of a loan agreement can range from 5 to 35 years when it is subscribed.

A scale determines the ceiling rates that the PC loan can not exceed. This scale varies between the duration of the loan and the type of fixed or revisable rate. Beyond these capped rates, the global effective rate (APR) that includes the nominal loan rate and the costs related to the implementation of the financing must not exceed the usury threshold.

The ceiling rates of the fixed rate loan

The ceiling rates of the fixed rate loan

Scale updated at 01/11/2017

  • Repayment period of up to 12 years: 3.10%
  • Repayment period between 12 years and 15 years: 3.30%
  • Repayment period between 15 years and 20 years: 3.45%
  • Repayment period greater than 20 years: 3.55%

The ceiling rates of the adjustable rate loan

The ceiling rates of the adjustable rate loan

  • Repayment period between 5 years and 35 years: 3.10%

Specific case of the adjustable rate loan: At its subscription, the loan agreement (PC) has a maximum duration of 35 years. The revision of the rate may result in an extension of the loan repayment period, this extension shall not exceed 5 years, nor increase the total loan period beyond 35 years. The borrower will be released from the settlement of any financial charges that will exceed this limit.

 

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