Notes to Financial Statements
Note 4: Mortgage payable
On June 23, 2010, the College received a $14.12 million mortgage from its bank to finance the purchase of office space at 101 Bloor Street West (note 12). The mortgage is being amortized over 30 years and will mature on June 30, 2020. It is secured by the property, bears interest at 5.77% and is payable in monthly instalments with the first two years being interest only and blended payments of interest and principal thereafter. Held as collateral for the mortgage are the property, a chattel mortgage and a general assignment of rents and leases.
On June 23, 2010, the College also received a $6.14 million construction mortgage from its bank to finance the building improvements (note 12). The mortgage bears interest at 5.77% and will be converted into a conventional first mortgage at the conclusion of the construction lien period and will be amortized over 30 years.
Interest expense of $614,927 (2009 – $nil) relating to the mortgage is included in operating support.