Term Deposit F.A.Q.

MCAN welcomes term deposit applications through approved deposit agents and directly from individuals for registered and non-registered products. MCAN Mortgage Corporation ("MCAN") is a member of the Canada Deposit Insurance Corporation (CDIC), and a member of the Federation of Canadian Independent Deposit Brokers (FCIDB).

If you are interested in purchasing a term deposit or in becoming an approved deposit agent, kindly contact our Customer Service Department by telephone at 1-800-387-9096 or by e-mail at termdeposits@mcanmortgage.com.

What is a term deposit?

A term deposit is virtually identical to a Guaranteed Investment Certificate (GIC). It is an instrument issued to borrow funds, and backed by the general creditworthiness of the corporation issuing it. No property is pledged as collateral for a term deposit. Term deposits are available in both a Registered form (RSP) and a non-Registered form.

Are MCAN term deposits eligible for CDIC deposit insurance?

Yes, MCAN is a licensed deposit-taking institution and is a member of the CDIC. Our term deposits are insured pursuant to the standard terms of coverage set out by CDIC, up to $100,000 per account. For more information, please consult this brochure or contact CDIC at 1-800-461-2342 or our Customer Service Department at 1-800-387-9096.

Is there a minimum dollar amount required for term deposit purchases?

Yes, MCAN has a minimum dollar amount, which varies by term. Our minimum amount for a short term term deposit (less than 1 year) is $10,000.00. Our minimum amount for a long-term term deposit (1 year and greater) is $5,000.00.

What does non-redeemable mean?

All MCAN term deposits are non-redeemable prior to maturity. This means that they cannot be cashed in early.

Does MCAN offer to hold a rate on term deposit purchases?

Generally, no. Registered funds (RSP) that are being transferred from another deposit-taking institution are eligible for a 30-day rate hold, from the date that the application is completed. MCAN does not provide a rate hold on non-registered funds. The rate received will be the rate on the day the funds are received by MCAN.

How can I make a deposit?

What happens to my term deposit at maturity?

All registered funds are placed into a Daily Interest Savings Account at maturity until renewal instructions are received. Renewal instructions can be sent via mail, fax, or e-mail. All non-registered funds are remitted via post-dated cheque prior to maturity. These cheques may then be cashed, or re-deposited with MCAN.

How can I contact your Customer Service Department?

You can contact our Customer Service Department by phone, fax, e-mail and mail. Our Customer Contact Centre is open from 8:00 AM to 6:00 PM Monday through Friday. Their phone number is 1-800-387-9096. Their fax number is 1-877-821-0710. Our e-mail address is termdeposits@mcanmortgage.com. Our mailing address is:

    MCAN Mortgage Corporation
    Term Deposit Administration
    200 King Street West, Suite 400
    Toronto, ON M5H 3T4

How can I resolve a complaint?

Step 1 – To resolve any complaint, contact MCAN’s client service centre at 1 800 387-9096.

Step 2 – If the matter is not handled to your satisfaction by the client service representative, you may bring the matter to the attention of MCAN’s Ombudsman by writing:

    MCAN Mortgage Corporation
    Attention: Ombudsman
    Suite 400, 200 King St W
    Toronto, ON M5H 3T4

Step 3 – If the foregoing has not resolved your complaint, you may write the Ombudsman for Banking Services and Investments at:

    P.O. Box 896
    Station Adelaide
    Toronto, ON M5C 2K3
    Toll free telephone: 1-888-451-4519
    Toll free fax: 1-888-422-2865
    E-mail: ombudsman@obsi.ca
    Web site: http://www.obsi.ca

What are the terms and conditions of MCAN’s term deposits?

The terms and conditions for MCAN’s term deposits as they appear on our confirmation are as follows: This is a confirmation of the issue on the books of MCAN Mortgage Corporation (the “Corporation”) of a Term Deposit issued on the Issue date, in the name of the Holder (“Holder”) named under Registration, for the Principal Sum, bearing interest at the Interest Rate, for the Term and maturing on the Maturity Date, each as set forth on the face of this Confirmation. No physical term deposits are ordinarily issued by the Corporation.

The Principal Sum of a term deposit will be repaid by the Corporation, with interest to the date of payment, on the Maturity Date or prior thereto upon the death of the Holder, at the option of the Holder’s legal representative upon presentation to the Corporation of appropriate documentation in form satisfactory to the Corporation; provided however, that this prepayment option shall not be applicable if this Confirmation identifies the Holder as being Non-Resident Tax Exempt.

If Interest Payment is stated to be monthly, the monthly payments will be paid to the Holder on the same date as the Issue Date in each month, commencing the calendar month following the month of issue and continuing until the earlier of the Maturity Date or the date of early repayment. If Interest Payment is stated to be annually, the annual payments will be paid to the Holder commencing on the anniversary date of the Issue Date and continuing until the earlier of the Maturity Date or the date of early repayment.

Interest Payments and repayment of the Principal Sum of a term deposit will be made by the Corporation to the Holder by cheque. Payments made by cheque are deemed made upon delivery or deposit in the mail.

A term deposit and the rights of the Holder thereunder are assignable and transferable, except if the Holder is a registered tax-deferred plan or fund.

These conditions are subject to amendment, supplement or variation by further conditions, if any, referred to on the face of this Confirmation.

If there should be any discrepancies or inquiries, contact the MCAN Mortgage Corporation Services Department at 1-800-387-9096. Should the matter not be resolved to your satisfaction contact:

    Financial Consumer Agency of Canada
    Enterprise Building, 6th Floor
    427 Laurier Avenue West
    Ottawa, Ontario K1R 1B9