What does it mean to buy a house with a mortgage?

Mortgage to buy a house is generally understood as the abbreviation for an individual to apply for a loan from a bank to buy a house due to insufficient funds when purchasing a house.

Currently, our country encourages people to buy houses with mortgages. Generally, anyone with no major bad credit record can apply for a mortgage to buy a house.

The mortgage loan period generally ranges from 6 to 30 years, and the application is based on personal circumstances.

There are two main repayment methods for personal housing loans: the equal principal and interest repayment method and the equal principal repayment method.

In the equal principal repayment method, the principal in each repayment amount is the same throughout the entire repayment period, and the interest repaid decreases month by month; the total principal and interest decreases month by month. This repayment method has greater initial repayment pressure and is suitable for people with higher incomes or those who want to repay in advance.

In the equal principal and interest repayment method, the principal in each installment is different. The initial repayment amount is smaller, and the total principal and interest are equal every month. This repayment method has a relatively slow principal repayment speed and takes up funds for a long time, so the total repayment interest is higher than the equal principal repayment method with the same period.

Things to note before taking out a mortgage to buy a house

Avoid "impulsive" consumption and act as an afterthought.

In order to live in a new house as soon as possible, many families often overestimate their financial affordability when applying for bank mortgages. After paying the down payment and repaying the interest on the mortgage loan, the payment becomes It will appear that you are unable to do what you want, leading to a breach of contract, and if you are unable to pay overdue, you will be visited by the bank, and you may choose a passive disposal method, spending money but not being able to live in a new house.

You may wish to try this: Three months before you decide to buy a house, withdraw the down payment and first installment of the house payment from your family deposit, and deposit it into a current account. Of course, the money in this current account must not be touched within three months.

If you really do this, you will accurately measure your psychological endurance, extra-professional income-generating ability, and generally speaking, your "risk resistance ability", which is simple and effective. To be honest, you cannot calculate the kind of nervousness required during the repayment period just by counting on your fingers.

What conditions need to be met to buy a house with a mortgage loan?

1. Basic conditions for commercial housing mortgage loans

The borrower has a stable career and income, good credit, and the ability to repay the principal and interest of the loan; the house purchased is located in an urban area ( Including urban areas, counties, and large market towns) and in principle it is the borrower's current place of residence, work, and business;

A "Commercial Housing Sales Contract" has been signed with the developer. Based on the personal credit situation, and has The down payment ratio specified by the bank has been paid, with a minimum of 30 or more;

The loan amount is determined based on the borrower's credit situation, occupation, education, repayment ability, and the ability to liquidate the purchased house;

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Agree to go through the mortgage registration for the pre-purchased commercial house first, and promise to use the purchased house as a loan mortgage and re-register the mortgage after the purchased house is completed and the real estate certificate is obtained.

2. Information required

The original and 3 copies of the ID card and household register of the applicant and his/her spouse (if the applicant and his/her spouse do not belong to the same household registration, additional marriage certificates must be attached) Proof of relationship);

The "Commercial Housing Sales Contract" signed between the buyer and the company;

The original and a copy of the advance payment receipt for a price of RMB 30 or more;

Proof of income of the home buyer (provided by the bank and placed at the sales office);

If the borrower is a legal person, he must bring a valid "Enterprise Legal Person Business License" or "Institutional Legal Person License" and the legal representative's identity certificate books, financial statements, loan cards. If it is a joint-stock enterprise, it is also necessary to provide the company's technical charter and the mortgage certificate approved by the board of directors;

A copy of the developer's collection account number.

3. General Business Regulations

The loan period is generally within thirty years, and the loan maturity date cannot in principle exceed the age of the borrower (male) 65 years old and (female) 55 years old Age;

The loan interest rate shall comply with the regulations of the People's Bank of China.

If the legal interest rate is adjusted, if the term is less than 1 year, the contract interest rate will be applied and interest will not be calculated in installments; if the term is more than 1 year, the new interest rate will be implemented at the beginning of the next year;

The main mortgage repayment There are two methods: equal principal and equal principal and interest, and buyers can choose freely. The equal principal is the monthly repayment of the principal and interest, with the larger amount first and the smaller later; the equal principal and interest is the monthly repayment of the principal with interest, and the monthly repayment amount remains unchanged (interest rate adjustment changes).

What is the process of buying a house with a mortgage loan?

The first step: Before applying for a loan, the borrower should find out whether the bank provides a personal housing mortgage loan commitment letter for the building to be purchased. Then, the borrower applies for a personal housing mortgage loan and fills out the "Loan Application Approval" Form", submit the relevant materials (originals and copies of proof of down payment, sales contract, ID card, proof of source of economic income, etc.) to the lending bank

Step 2: Developer: As the guarantor of the loan, Sign and stamp the "Guarantor's Opinion" column on the loan application approval form

Step 3: Loan bank: The loan officer will review all the information and documents submitted by the loan applicant and approve them step by step

Step 4: The lending bank receives the completed documents and issues the loan according to the legally valid loan contract

Step 5: Property Rights Registration and Notary Department of the Bureau of Land and Resources: Handle the registration procedures for real estate property rights mortgage

Step 6: Notify the developer to get back the loan contract and the developer will issue proof of payment to the lending bank

Step 7: Notify the borrower to get back the loan contract, IOU, insurance policy

Step 8: The loan officer of the loan bank files the loan file

How to apply for a home purchase mortgage loan?

You can apply for a loan to buy a house, which will reduce the financial pressure. It is more common to apply for commercial loans to buy a house, but provident fund loans are more cost-effective. So how to apply for a house loan?

1. Prepare materials. The borrower needs to prepare ID card, house purchase contract, down payment receipt, income certificate, work certificate, marital status certificate and other materials;

2. Submit an application. Bring relevant materials to the bank to apply for a loan and fill out the application form;

3. Loan approval. The bank will review and approve the materials after receiving them, and determine the amount, loan period, interest rate, etc.;

4. Sign the contract. If the borrower's loan is approved, you can sign a loan contract with the bank;

5. Apply for guarantee. The borrower needs to go through the guarantee procedures and handle the housing mortgage registration;

6. Bank lending. After all procedures are completed, the bank will release the loan as soon as possible and the money will be transferred to the developer's account.

How to buy a house loan

1. Housing provident fund loan

Housing provident fund loan refers to the housing provident fund management center in various places using the funds paid by employees and their units. Housing provident fund refers to commercial banks entrusting commercial banks to issue housing mortgage loans to current employees who have paid housing provident funds and retired employees who have paid housing provident funds during their employment.

For residents who have participated in paying the housing provident fund, when purchasing a house with a loan, low-interest loans from the housing provident fund should be preferred. Housing provident fund loans are policy subsidies.

The housing provident fund loan interest rate is very low, not only lower than the commercial bank loan interest rate in the same period, but also lower than the commercial bank deposit interest rate in the same period. That is to say, there is a gap between the housing provident fund mortgage loan interest rate and the bank deposit interest rate. A spread. At the same time, the fees for housing provident fund loans are halved when handling related procedures such as mortgage and insurance.

2. Personal housing commercial loan

Personal housing commercial loan is a kind of loan that Chinese citizens apply to the bank for purchasing commercial housing. It is a self-financed loan issued by the bank using its credit funds. Business loans. Specifically refers to the housing business that a natural person with full civil capacity applies to the bank as a guarantee for repayment of the loan when purchasing a self-occupied urban home in this city, using the purchased property housing (or other guarantee methods recognized by the bank) as collateral. sex loan.

The housing provident fund loan method is limited to employees of units who have paid the housing provident fund, and there are many restrictions. Therefore, people who have not paid the housing provident fund are not eligible to apply for loans, but they can apply for personal housing guaranteed loans from commercial banks.

3. Personal Housing Portfolio Loans

Personal Housing Portfolio Loans refer to banks that simultaneously provide employees who have paid housing provident funds in full and on time when purchasing or overhauling various types of housing. A specific loan portfolio formed by provident fund personal housing loans and self-employed personal housing loans.

Portfolio loans have moderate interest rates and larger loan amounts, so they are more popular among borrowers.

Among the above three types of loans, provident fund loans have the lowest interest rates, followed by portfolio loans.

What does it mean to buy a house with a mortgage? Process of buying a house with a mortgage

The word "mortgage" is the Cantonese transliteration of the English "Mortgage". It refers to using real estate and other physical assets or securities, contracts, etc. as collateral to obtain a bank loan and pay off the principal and interest in installments according to the contract. , the bank returns the collateral after the loan is repaid.

Mortgage loan is a personal housing loan business in which the home buyer uses the home purchased as collateral and the real estate company where the home is purchased provides a periodic guarantee.

Required conditions for mortgage purchase:

1. Natural persons aged 18-60 years old (Hong Kong, Macao, Taiwan and foreigners are also acceptable)

2. Have a stable occupation , Stable income, and the ability to repay the principal and interest of the loan on time

3. The actual age of the borrower plus the loan application period should not exceed 70 years old

Mortgage house purchase process:

1. Loan application

After confirming that the property of their choice is supported by a bank mortgage, home buyers should fill in a "Mortgage Loan Application" to the bank.

2. Sign a house purchase contract

The bank receives the legal documents related to the mortgage application submitted by the house buyer. After reviewing and confirming that the house buyer meets the conditions for the mortgage loan, the bank will issue the loan to the house buyer to approve the loan. Notice or mortgage commitment letter. Home buyers can sign a "Commercial Housing Pre-sale and Sales Contract" with the developer or its agent.

3. Sign a mortgage contract

After signing a house purchase contract and obtaining proof of payment of the house payment, the buyer will sign a "Building Mortgage Mortgage Contract" with the developer and the bank with the relevant legal documents stipulated by the bank. The Mortgage Loan Contract specifies the mortgage loan amount, term, expected annualized interest rate, repayment method and other rights and obligations.

4. Handle mortgage registration and insurance

House buyers, developers and banks should go to the real estate management department to handle mortgage registration and filing procedures with the "Building Mortgage Loan Contract" and the house purchase contract.

5. Open a special repayment account

After signing the "Building Mortgage Loan Contract", the home buyer will open a special repayment account at a financial institution designated by the bank according to the contract. account and sign a letter of authorization authorizing the institution to pay the bank's loan principal, interest and arrears related to the mortgage loan contract from the account.