Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
50% - Moderately

Due-on-sale Clause

Synonyms:condition, fine print, payment, transaction
Filed Under: financial-banking, legal-contracts, mortgages
Tags: banking, clause, contract, legal, mortgage

Definition of due-on-sale clause

due-on-sale clause
1. A mortgage condition or clause that states the loan must be paid in full when the property is sold. Commonly used in reverse mortgage lending.

Related Terms and Acronyms:

  • closing date (cloda)   The date a buyer takes possession of a property title.
  • conditional sale (C/S)   An agreement between the buyer and seller in where certain conditions must be met before the property sale can be finalized.
  • mortgage (mtg)   A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • reverse mortgage   A loan that allows an older homeowner to convert built-up equity into cash. The loan comes due when the owner dies, sells the house or moves out.

Search the Glossary

Try Our Mortgage Calculator
Do you ever doubt the mortgage advice your bank manager gives you? You'd better, because they're looking at their own bottom line when they tell you to refinance and lock in for longer. Use our mortgage calculator to examine their claims, and find out if what they say is really in your best interest.
Mortgage Rates
Check out how we stack up against our competition and compare our mortgage rates.
Mortgage Rates
Compare Today's Best Rates
We have nothing to hide and that's why we post all of Canada's current mortgage rates for you to compare. We strive to maintain our spot at the top of that list each and every day with the best mortgage rate available.
Compare Rates