Name
Personal Second-hand Housing Loan (Home Builder)
Introduction
Second-hand Housing Loan is a business where Bank of China issues loan for the purchase of the second-hand housing with issued valid documents of ownership and housing seller having full disposal rights, and the loan usually has the purchased second-hand house as mortgage.
If you have not paid up the purchased housing loan, which was issued by Bank of China or other banks, you can apply to Bank of China for personal second-hand housing re-mortgage loan to make your property trade continue.
Personal second-hand housing re-mortgage loan service is a business where the borrower (the original proprietor) who has gone through housing mortgage loan service in lending bank sells the purchased housing with mortgage loan, and then the new proprietor (new borrower) will receive the secured loan from the lending bank after its examination and approval. It includes two situations: Firstly, the lender issues mortgage loan to the new borrower to pay up the mortgage loan of the original lender; Secondly, the bank and new borrowers sign borrowing contract, and change housing mortgage registration to make the new borrower bear the loan debt owed by the original borrower.
I. Qualifications for Loan
The business can be processed at outlets with levels higher than local sub-branches of Bank of China.
Borrowers applying for personal home loan shall meet the following conditions:
1. The purchased house shall meet trading conditions for the access to secondary market, have clear ownership, and both the trading parties shall enter into legal and effective housing trade contract or agreement;
2. Down payment of no less than 20% of the total second-hand housing price should be paid, and the borrower should open a personal demand deposit account with the lender;
3. Guarantees which the borrower agrees to provide the purchased second-hand housing as mortgage to the bank for the repayment of loan principal and interest, or other valid guarantees which are in line with laws and regulations and with the lender's approval;
4. Other qualifications stipulated by the lender.
II. Term of Loan
The term of Personal Second-hand Housing Loan or the said term plus the age of building shall not be over 30 years.
III. Interest rate
Interest rate of Personal Second-hand Housing Loan is set in line with the commercial loan rate at the same level and floats within such scope that is required by the People's Bank of China.
IV. Loan Quota
The highest limit of Personal Second-hand Housing Loan shall not be over 80% of the evaluated value of the purchased housing or the second-hand housing trading value(choose the lower one from these two).
V. Loans Repayment
You may choose one-off repayment of principal with Interest, matching the principal and interest repayment and matching the principal repayment, or other flexible repayment methods as agreed by Bank of China through negotiation.
After the Second-hand Housing Loan Contract comes into effect, you may make partial or whole repayment in advance if Bank of China approves and your funds resource allows.
VI. Guarantee, Insurance and Notarization of Loan
For guarantee, Personal Second-hand Housing Loan usually adopts guarantee with mortgage, pledge or local property companies as approved by Bank of China.
You or the mortgagor shall purchase property insurance for the mortgage object, with an amount not lower than the total housing price and term of insurance not shorter than term of loan.
Notarization of loans: If you have nationality of foreign countries (including Hong Kong, Macau, Taiwan, and foreigners), you shall have the Second-hand Housing Loan Contract notarized and bear the notary fees.
VII. Loan Application
Documents needed for application of personal entrusted home loan:
1. Application for Personal Second-hand Housing Loan;
2. Legal identity documents (ID cards, Hukou book, military officer certificate, Housing-Visiting Certificate for Compatriots from Hong Kong and Macau or other valid residence certificates) and their copies;
3. Certification issued by our bank for down payment of the second-hand housing purchase and copies thereof;
4. Income proof approved by the lender;
5. The Housing Trade Contract signed between the borrower (housing buyer) and the housing seller;
6. Confirmation note provided by the property co-owner for consent to mortgage the purchased housing;
7. Other materials required by the lender.
VIII. Loan Rescheduling
In event of failure to repay loan principal and related interest according to the original plan, you may apply to the lender for loan rescheduling 30 working days in advance, i.e. adjusting term of loan and amount of monthly installment. After loan rescheduling is approved, you will repay the principal and the related interests according to the new repayment schedule.
Target Customers
1. Natural person with full civil capacity.
2. Those with permanent residence in China or valid resident status together with accurate and specified address and contact methods;
3. Those with proper job and regular income, good credit standing and capability to repay loan principal and related interest on time together with certification documents on the said capability;
Process
Please contact relevant outlets at levels higher than sub-branch of Bank of China.
Kind Reminder
Since it needs plenty of documents to apply for loans; for more questions, you may feel free to contact any local outlet of Bank of China with the brand mark "Ideal Home" for counseling or call 95566.
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