What's the difference between due-on-sale clauses and demand clauses?

Due-on-sale clauses and demand clauses are very similar, but the big difference is in when the lender can call for payment on the loan. With a due-on-sale clause, the lender can demand payment only if you are selling the house to someone else. With a demand clause, they can demand immediate payment for the loan at any point. They do not have to have a specific reason, and they can tell you that the entire balance of the loan is due. With a demand clause, the lender could force you to take a higher interest rate on a loan or risk having to repay the entire balance.