Overview:
The case involved an application by Innovation Federal Credit Union (the "Credit Union") for leave to commence a foreclosure action against the homeowners, Toews and Montpetit. The application was ultimately dismissed as the homeowners rectified their mortgage defaults.

Legal Issue:
The key issue was whether the Credit Union could continue its foreclosure action after the homeowners remedied the mortgage default by paying the arrears.

Background:
The homeowners had entered into a mortgage with the Credit Union in 2021 for $193,600 with monthly payments of $971.71. By October 2023, they defaulted, owing $4,858.55. However, they consistently made efforts to pay off arrears, reducing the outstanding amount to $971.71 by June 2024. The Credit Union sought leave to monitor payments, which the court rejected.

Legal Analysis:
The court noted that under The Land Contracts (Actions) Act, 2018 and The King’s Bench Act, a mortgagor can cure defaults before foreclosure proceedings begin. Since the homeowners had brought their mortgage current, there was no actionable breach, and the application was dismissed. The court emphasized that monitoring payments post-default was not a proper judicial purpose.

Costs Awarded:
The application was dismissed without an award of costs, as pre-leave costs are not typically granted. However, the court retained discretion to impose costs in future cases involving chronic defaults.