Buying a new house with a bank loan is stipulated by the People's Bank of China to buy insurance. The name of insurance is personal loan mortgage home insurance, which is a special kind of property insurance. The insurance company will return the remaining loan to the bank if the borrower (i.e. the borrower) is unwilling to repay the loan after the main guarantee house is damaged due to an insurance accident.

After 2004, various localities upgraded mortgage insurance to comprehensive mortgage insurance, referred to as "comprehensive mortgage insurance" or "mortgage insurance", and added repayment guarantee clauses: when the borrower dies, is disabled or loses repayment ability due to accidental injury, the insurance company will repay the remaining loan principal.