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In This Volume

  • 3 (1) Interest is chargeable on the mortgage money and is payable by the borrower.
  • (2) Interest is not payable in advance. This means that interest must be earned before it is payable.
  • (3) Interest on advances or readvances of the principal amount starts on the date and on the amount of each advance or readvance and accrues on the principal amount until the borrower has paid all the mortgage money.
  • (4) Interest payable on any part of the principal amount advanced before the interest adjustment date is due and payable to the lender on the interest adjustment date.
  • (5) At the end of each interest calculation period, unpaid accrued interest will be added to the principal amount and bear interest. This is known as compound interest.