What Information Must Be Included in the Initial and Ongoing Interest Rate Adjustment Notices?

Both the initial and the ongoing interest rate adjustment notices must include:

  • The date of disclosure or notice

  • An explanation referring to the loan being adjustable and that the interest may change during the term of the loan

  • The effective date of the adjustment and future adjustments, or any other changes to the loan terms on such date

  • The current and new interest rates

  • The current and new payments, including the date when the first payment is due

  • An explanation of how the interest rate is to be determined, including the formula used in making the adjustment

  • An explanation of the limits on the interest rate or payment increases

  • An explanation of how the new payment amount is determined

  • The prepayment penalty and its conditions

  • Contact information of the servicer

  • A brief explanation of the alternatives to paying the loan at the new rate (refinancing, selling the property, renegotiating, forbearance)

  • Housing counselling information