Most people use commercial loans, but the interest rate is higher than that of mortgage loans, and the cycle is short. Because these two kinds of loans have different purposes. Let's look at the difference between the two:

(1) Commercial loan is a way for buyers to borrow money from banks. Generally speaking, you use the house you bought as collateral, sign a commercial contract with the bank, take the way of not transferring ownership as a guarantee, and repay the loan to the bank on schedule. This kind of loan must pay interest. You have to pay off the principal and interest to the bank according to the contract, and then get back the mortgaged house ownership certificate and land use certificate. In other words, the ownership of the house is not yours until you pay off the loan. In case of default, the bank has the right to dispose of the house.

(2) Mortgage is just like installment payment now. You can get ownership of the house by installment. As long as you pay all the money, the house is yours. However, mortgage transactions will involve three kinds of debt relationships, one is the buyer, the other is the seller, and the third is the bank. The process is that the bank signs relevant contracts with the seller, prepays part of the expenses, and then the buyer signs a mortgage contract with the bank on the basis of this contract, and the bank pays the rest of the house purchase price to the seller. As long as the buyer pays the bank regularly until it is paid off, the mortgage process is completely over.

(3) Commercial loans are also mortgage loans, and loans must have land use certificates and house ownership certificates. The basic procedure is that the buyer obtains the property right certificate first, and then handles other property rights certificates, and holds other property rights certificates as collateral.

(4) Mortgaging under the condition that the buyer has not obtained the property right certificate. Generally, his property right certificate is used as mortgage guarantee first. After paying off the purchase price, the real estate development unit will transfer the property right to the mortgage beneficiary, and all property rights certificates will be held by the mortgagor.

Bottom line: mortgage is actually mortgaged with the house you bought, while commercial loan is mortgaged with the house you already have.

What's the difference between commercial loans and bank mortgage loans?

1, loan time is different: commercial loans are generally short-term loans, usually 9 months, not more than one year. The term of bank mortgage varies from 1 year to 30 years.

2. The complexity of the loan process is different: as long as the down payment reaches the proportion required by the bank and they have a good credit line, they can apply for commercial loans, and the application procedures are relatively simple. Bank mortgage is relatively complicated.

3. Different loan interest rates: The commercial loan interest rate is high, and the mortgage interest generated ranks first among several mortgages. The bank mortgage interest rate is relatively low.

4. Term: The sum of the age of the bank mortgage lender and the loan term cannot be greater than 60 years old. There is no such requirement for commercial loans.

Matters needing attention in the process of commercial loan:

1. Submit a loan application: When you have signed a house sales contract, you can apply for a commercial loan from the bank. Whether it is a first-hand mortgage or a second-hand mortgage, it is necessary to submit the complete materials approved by the bank to the bank for review, which is the most important step in the commercial loan process.

Mainly including ID card, household registration book, original and copy of marriage certificate; Foreign household registration needs to provide temporary residence permit or residence permit; Income certificate issued by the work unit; Sales contract, down payment invoice or receipt; Wage flow or other proof of assets in the past six months. In addition to the above five materials, different banks have different requirements for commercial loans, and other materials required by loan banks should be inquired in detail.

2. Investigation accepted by the bank: After receiving the application materials of the loan applicant, the bank will review the materials. The general review time for commercial loans is 15 working days, and the longest time shall not exceed 1 month.

During the bank investigation, the loan applicant will be asked to supplement some information according to the situation. Therefore, the loan applicant needs to keep in touch with the bank during this period.

3. Bank verification and approval: the loan bank will verify several aspects: the situation of the house, the qualification and credit status of the borrower, etc. This is an important link in the process of commercial loans. If the credit of the loan applicant is not good, it will directly lead to the failure of the loan application, so it is very important to accumulate good personal credit in life.

4. Both parties shall go through relevant formalities: the bank informs the loan applicant that after the loan is approved, it is necessary to open an account in the bank, get a debit card and sign a loan contract. At the same time, handle mortgage, guarantee, pledge, insurance and other related guarantee procedures. When signing a loan contract and handling the guarantee formalities, you must know the detailed rules in the contract in detail and make clear your rights and obligations so as to avoid unnecessary misunderstanding.

5. Bank loan: After all loan procedures are completed, the bank transfers the loan funds to the account of the real estate developer, and the loan relationship is established, and the lender repays the loan according to the regulations.