Mortgage loan is a way for the buyer (mortgagor) to borrow money from the bank (mortgagee). That is, the buyer takes the purchased property as collateral, signs a mortgage contract with the bank, and repays the loan to the bank on schedule by taking the way of not transferring ownership as a guarantee. Interest must be paid on this loan. After the buyer (mortgagor) pays off the principal and interest to the bank according to the contract, he can recover the collateral-"house ownership certificate" and "land use certificate". In other words, before the buyer pays off the loan, he doesn't really own the ownership of the house he bought. If the loan is not repaid on time, the bank can handle it according to law.

Mortgage loan is a popular way to sell real estate in the world. Although it is different from mortgage loan in nature, it achieves the same goal in "restraining house ownership" to ensure debt performance (installment payment and timely repayment).

Measures for the administration of mortgage loans

In order to better support the development of agriculture, countryside and farmers, build a new socialist countryside, increase the types of loans and ensure the safety of loans. In order to safeguard the legitimate rights and interests of both borrowers and lenders, these measures are formulated in accordance with the relevant provisions of the state.

Article 1 Mortgage loan is a loan method that the borrower is willing to use his own property or the property of a third party as a guarantee when borrowing from the company. When the borrower fails to repay the loan principal and interest at maturity, the company has the right to dispose of its collateral as repayment of the loan principal and interest and related expenses.

Article 2 A mortgage loan contract shall be signed on the basis of equal consultation in accordance with the relevant provisions of the State.

Article 3 Scope of collateral: fixed assets (such as houses and other above-ground buildings, vehicles, machinery and equipment, etc.) with use value according to law; Materials or property that can be circulated or transferred.

Enjoy the national preferential policies to buy housing mortgage, the mortgage amount is limited to the mortgagor's share of the proceeds; An enterprise legal person with an operating period may not mortgage a house beyond the operating period;

Where a house with land use years is used as mortgage, the mortgage period shall not exceed the remaining years after deducting the used years from the used years stipulated in the land use right transfer contract. Where a house is mortgaged, the right to use the state-owned land within the occupied area of the house shall be mortgaged at the same time.