A home loan contract is the document that governs the terms of your home loan, defines essential conditions such as “default” and defines your debt obligation. Most of the time, when obtaining a policy authorization for your home loan, you can conclude the signing of this document as a simple formality before the money is transferred to your account. However, once you have signed the home credit contract, you are bound by the terms and conditions and you are required to fulfill all the financial consequences mentioned in it. So don`t just look at interest rates on home loans, read the whole deal before signing on the polka dot lines. If you understand the ins and outs of your home loan clauses, make sure you are sure and aware of what you can expect as soon as your home loan agreement expires. If you want more advice on starting a new home loan, why not come to your local BOQ subsidiary and chat with one of our credit experts today? Lenders often contain clauses that may ask you for an additional guarantee if your home, which is used as collateral, takes value relative to the home loan content. Be vigilant to protect yourself from such clauses before signing the home credit contract. In such a situation, the lender may raise your interest rates or defer your fixed interest rate to a variable rate in a few years or due to exceptional circumstances. To avoid any surprises in the future, be sure to read these clauses carefully and know when interest rates on residential loans will change. If you arrive in a gale of cash, like a work bonus, wouldn`t it be great if you could put this towards the repayment of your home loan a little earlier? This is what is known as advance of a home loan. Lenders can often ask borrowers to provide additional collateral to secure outstanding home loans. This is when they feel that there is a risk due to a drop in the price of real estate or the deterioration of the property, for example.
A mortgage contract is a contract between a borrower (called mortgagor) and the lender (which is called the mortgage lender) that creates a right of bet on the ground to ensure repayment of the loan.