According to Article 25 of the Measures for the Administration of Personal Housing Loans, if real estate is used as collateral, the borrower shall go through the insurance formalities at home or entrust the lender to handle it. During the mortgage period, the insurance policy shall be kept by the lender.
Article 26 During the mortgage period, the borrower shall not suspend or cancel the insurance for any reason. During the insurance period, if the damage beyond the scope of insurance liability is caused by the fault of the borrower, the borrower shall bear all the responsibilities.
Extended data:
Detailed process of buying a house with mortgage loan
1, select real estate
If property buyers want to get mortgage services, they should focus on this aspect when choosing real estate. When buyers learn in advertisements or through the introduction of sales staff that some projects can apply for mortgage loans, they should further confirm whether the real estate developed and built by developers has obtained the support of banks to ensure the smooth acquisition of mortgage loans.
2. Loan application
After confirming that the property you choose has bank mortgage support, buyers should learn about the bank's regulations on obtaining mortgage support from the bank or the law firm designated by the bank, prepare relevant legal documents, and fill out the mortgage application.
3. Sign a house purchase contract
After receiving the relevant legal documents of the mortgage application submitted by the buyer, the bank will issue a loan consent notice or a mortgage loan commitment letter to the buyer after confirming that the buyer meets the mortgage loan conditions. Property buyers can sign the "Pre-sale Sales Contract of Commercial Housing" with developers or their agents.
4. Sign the house mortgage contract.
After signing the purchase contract and obtaining the payment voucher, the purchaser signs the Building Mortgage Loan Contract with the developer and the bank with the relevant legal documents stipulated by the bank, so as to specify the amount, term, interest rate, repayment method and other rights and obligations of the mortgage loan.
5. Apply for mortgage registration and insurance.
Property buyers, developers and banks hold building mortgage loan contracts and purchase contracts to the real estate management department for mortgage registration and filing procedures. If the auction house is delivered, the mortgage registration shall be changed after completion. Usually, due to the relatively long term of mortgage loans, banks require buyers to apply for life and property insurance to prevent loan risks.
When purchasing insurance, the buyer shall list the bank as the highest beneficiary, and shall not interrupt the insurance during the loan performance, and the insurance amount shall not be less than the total value of the collateral. Before the loan principal and interest are paid off, the insurance policy is handed over to the bank.
6. Open a special repayment account
After the house mortgage loan contract is signed, the buyer opens a special repayment account in the financial institution designated by the bank according to the contract, and signs a power of attorney to authorize the institution to pay the loan principal and interest and arrears related to the mortgage loan contract from this account. The bank is confirming that the buyers meet the mortgage loan conditions and fulfill the obligations stipulated in the building mortgage loan contract.
After going through the relevant formalities, the loan will be transferred to the bank supervision account opened by the developer in the bank at one time, and will be used as the personal housing loan business guaranteed by the purchaser's purchase price in stages.
Baidu Encyclopedia-Measures for the Administration of Personal Housing Loan
Baidu encyclopedia-mortgage loan