A home loan contract is an official document drafted when an individual takes a loan from a bank or a financial institution in order to buy a home. The contract states the loan amount, the interest rate to be paid annually and the time period in which the borrower has to repay the loan amount.
Sample Home Loan Contract
Home Loan Contract Number: Ju41
Date of registering the contract: 14th of April 2011
This home loan contract has been drafted between Noel Jones referred to as the borrower and residing at:
41 Just Chill Road
New Lee New Pee 4125
And Bank of Loan referred to as the lender with main branch located at:
41 Very Hot Road
New Lee New Pee 4136
The total loan amount taken is $500000 which the borrower promises to repay in ten years. For the loan taken the borrower agrees to pay an annual interest rate of 10 percent.
Terms and conditions in the contract:
- The borrower has to pay a monthly installment of $1000. He has to make the payment on the 1st week of every month. He has to pay the amount by check or he can do an online transfer from his savings account.
- In case of three consecutive default in making payment, the lender can cancel the contract after which the borrower has to pay the complete loan amount with the outstanding interest amount.
In acceptance to the above terms and conditions, find the signature of both the parties below:
Signature of the borrower: Signature of the lender:
Noel Jones John Woo
(Manager, Bank of Loan)