Section 8 of the Interest Act (Canada) prevents a lender from charging a higher rate of interest on default of a mortgage than was charged before the mortgage went into default.  The section includes fines, lump sum bonuses, late payment charges, default fees, and similar charges intended to penalize a borrower who makes late payments or who defaults.  The purpose of section 8 is to protect borrowers from aggressive lending practices that will prevent them from repaying their loans.

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