Background Facts:

• Robert Allen Panteluk defaulted on a matured residential mortgage held by Innovation Federal Credit Union.

• As of December 13, 2024, the outstanding mortgage balance was $79,051.39, which included $563.92 for fire/property insurance paid by the Credit Union.

• The Credit Union applied for an order nisi for foreclosure, seeking to recover the full amount, including the insurance cost.

Legal Issues:

• Whether the insurance cost could be included in the mortgage balance for redemption purposes.

• Whether including such costs violated The King’s Bench Act, SS 2023, c 28 and The Limitation of Civil Rights Act, RSS 1978, c L-16.

Court’s Findings:

• The court ruled that only “arrears in default” could be included in the mortgage balance, excluding the insurance cost.

• It cited s. 10-11 of The King’s Bench Act, which limits redemption payments to amounts due under the mortgage.

• It referenced Home Equity Mortgage Corporation v. Matycio, 2018 SKQB 283, reinforcing that mortgagees cannot add incidental costs to the redemption amount.

Final Judgment & Award:

• The redemption amount was reduced to $78,487.47 after removing the insurance charge.

• Innovation Federal Credit Union was granted leave to submit a revised order nisi for foreclosure.

This decision clarified that insurance costs paid by mortgagees cannot be added to redemption amounts, protecting borrowers from inflated foreclosure balances.