Acceleration Clause

An Acceleration Clause is part of a load agreement that, if the borrower breaches certain conditions, will require them to pay back the full remaining amount immediately.

These conditions — beaches of contract — are usually to do with defaulting on mortgage payments, but can be to do with transfer or sale of the property.

The lender is not obliged to enforce the Acceleration Clause, but its existence acts as a safety net to protect the lender in case of default of payments.

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Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au