Common use of Term of Loan Clause in Contracts

Term of Loan. There is a minimum term on the Loans of 5 years. The maximum term is normally 35 years. For interest only loans where the Borrower is using a pension plan as the relevant repayment mechanism to repay the loan at maturity, the maximum term is extended to 57 years to reflect the long-term nature of pension plans. For such pension-linked loans, if the property is a leasehold and the lease has 55 or fewer years unexpired as at the date of completion of the mortgage, the maximum term is 25 years. Otherwise, the maximum term on a leasehold property may not exceed the unexpired residue of the term of the relevant lease.

Term of Loan. There is a no minimum term on the Loans of 5 yearsLoans. The maximum term is normally 35 years. For interest only loans where the Borrower is using a pension plan as the relevant repayment mechanism to repay the loan at maturity, the maximum term is extended to 57 years to reflect the long-term nature of pension plans. For such pension-linked loans, if the property is a leasehold and the lease has 55 or fewer years unexpired as at the date of completion of the mortgage, the maximum term is 25 years. Otherwise, the maximum term on a leasehold property may not exceed the unexpired residue of the term of the relevant lease.

Term of Loan. There is a minimum term on the Loans of 5 years. The maximum term is normally 35 years. For interest only loans where the Borrower is using a pension plan as the relevant repayment mechanism to repay the loan at maturity, the maximum term is extended to 57 years to reflect the long-term nature of pension plans. For such pension-linked loans, if the property is a leasehold or long lease and the lease has 55 or fewer years unexpired as at the date of completion of the mortgage, the maximum term is 25 years. Otherwise, the maximum term on a leasehold or long lease property may not exceed the unexpired residue of the term of the relevant lease.