It can happen. About the only thing that a bank CANNOT change in their contracts is the facility limit of the amount owing. A bank/lender would be incredibly loathe to do it, but they can.
The Code of Banking Practice and Consumer Credit Code (under a fairness test) may also prevent the lender charging an exit fee in the event that the loan was called in, so personally, I wouldn't 'bank' on the exit fees all coming in...
This is para 36.6 from a memorandum of Common provisions. It's the rules and regulations that sit behind the Mortgage document that you would have signed when you took out your loan - It's a State Law document that doesn't differ from bank to bank.... :
"The bank may demand all or any part of the amount owing and may exercise its rights even if any orders, drafts...... ...other instruments and engagements (whether negotiable or not) are still current, in circulation, outstanding or not then due."
Put simply, the bank may demand any or all of the amount owing (ie your loan) even if it is not yet due.
RHG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
