Common use of Effect of a later agreement Clause in Contracts

Effect of a later agreement. 12.12.2.1 An agreement changing the mortgage doesn't pay off the loan or make the loan into a new loan, but merely changes the terms of the mortgage (and there's no novation). The changes become part of the mortgage. For example, the loan continues even if it has a different type of mortgage product. Except where the agreement provides otherwise, the terms of the mortgage continue and apply to the loan as changed, and all security secures the loan as changed. If interest that's owing is treated as part of the loan under the agreement, that doesn't impair our priority. The agreement adds to our rights and doesn't take away or lessen a right that we have and we reserve those rights. 12.12.2.2 Where the agreement extends the term of the loan, it changes the date of the mortgage to the effective date of the agreement. This means that, if section 10 of the Canada Interest Act or a similar law gives you a right to prepay with a prepayment charge of three months' interest, you don't have that right until five years after the new date. Section 10 of the Canada Interest Act and similar laws don't apply to a mortgage given by a corporation.