Funny Mortgage Clauses?

[Grimloq69]

Hi guys,

I just got a letter of offer from a bank for a mortgage but there are some weird clauses. I wanted to know if these are normal?

(a) The Borrower’s placement of adequate deposits in the Account for payment of initial 12 monthly instalments of the Loan upon acceptance of this Letter of Offer.

(b) The Property shall be owner-occupied for the full tenor of the Loan. The Bank reserves the right to recall and/or cancel the Loan immediately if, at any time the Mortgagor rents out, sublets, licenses or parts with possession of the Property without the Bank’s prior written consent.

 

[Spock]

Hi guys,

I just got a letter of offer from a bank for a mortgage but there are some weird clauses. I wanted to know if these are normal?

(a) The Borrower’s placement of adequate deposits in the Account for payment of initial 12 monthly instalments of the Loan upon acceptance of this Letter of Offer.

(b) The Property shall be owner-occupied for the full tenor of the Loan. The Bank reserves the right to recall and/or cancel the Loan immediately if, at any time the Mortgagor rents out, sublets, licenses or parts with possession of the Property without the Bank’s prior written consent.

I may be wrong but I think (b) may be possible if the bank is offering you a lower rate than what they have advertised. It is mainly because they deem your loan as lower risk if it is owner-occupied rather than being used as an investment.