Insurance Home Loan - Part 3

Validity and acceptance deadlines

After negotiating the conditions of the mortgage with your banker, it publishes a credit offer. Its validity, the time limits and terms of acceptance or waiver of the offer are regulated by law.

The loan offer validity period: 30 days

The mortgage contract offer is sent to you by the Bank by mail. It shall not be returned by hand to hand.

The offer is valid at least 30 days following its receipt by the borrower. During this time, the Bank must maintain unchanged the terms of its offer.

The loan offer acceptance period: 10 days

Receipt of the supply of credit, the borrower has a minimum period of 10 days of reflection. You can give your acceptance after expiry of that period. That the loan offer can be signed and returned only from the 11th day. The day of the receipt of the offer does not count within the time limit.

To express your acceptance, you sign and date the offer and you return it by mail to the Bank. To verify compliance with the period for acceptance of 10 days, this is the date of the postmark which is taken into account.

Cancellation of the loan for non-conclusion of the real estate transaction: 4 months

The loan contract is accepted provided that the real estate transaction funded by this appropriation (acquisition, construction or work) is itself entered into, within a period of 4 months. If at the end of these 4 months, the purchase contract is signed, the credit agreement is automatically cancelled. The borrower is no longer bound by the loan.

This minimum period of four months may be extended by the parties, buyer and seller.

Suspensive condition of credit: 1 month

The compromise or the promise of sale has a suspensive condition of funding by the purchaser, when it finances its purchase by credit.

This condition precedent is valid for at least a month from the signing of the preliminary contract of sale. This period may be extended by the parties or be extended to the expiry of the minimum period.

You have in practice a minimum month to find the loan. If the Bank you are denied credit, the sale is cancelled. The sum paid at the signing of the promise of sale, usually 10% of the selling price is refunded to you.

Waive the benefit of this clause, pay attention to the consequences

You can waive the benefit of the suspensive condition by appending a handwriting in the preliminary contract of sale.
But attention to the consequences of this waiver. If you need a loan, you won't be able to benefit from the protective provisions of the Act. If you do not get the loan you need to abandon your purchase, you must pay to the seller the sum paid to the signing of the agreement for sale.