Ontario Bans Notices Of Security Interest For Consumer Goods

Energy schemes are prevalent in Ontario, and often involve door-to-door salespersons asking to inspect homeowners' water heaters, furnaces, HVAC systems, and other equipment.

These tactics usually target vulnerable senior citizens who are persuaded to enter into exploitative loan agreements with private lenders to finance the purchase or lease of various fixtures and equipment on very onerous terms.

These schemes usually involve the registration of Notices of Security Interest ("NOSIs"), also known as fixture filings, on title to the residential property to secure the fixture loans. The homeowner is often unaware that the registration has even occurred until they are about to sell or remortgage the property. Some homeowners are later induced to take out increasingly larger mortgage loans secured against their homes, to pay off the NOSIs, often at predatory rates and from related entities.