House down payment loans are not a new term nowadays. Especially with the continuous soaring of house prices and the repeated increase in the proportion of house down payment, insufficient down payment has become a stumbling block for many home buyers. Therefore, some financial institutions have launched down payment loan services.

What is a down payment loan? To put it simply, if you buy a house and the down payment is not enough, they will lend you the money to make up the down payment, which is a down payment loan.

1. Types of down payment loans

It is understood that there are two types of down payment loans: secured and unsecured.

Secured down payment loans are designed for improvement-oriented home buyers: home buyers want to sell their existing house and buy a new one, but the time between selling their own house and paying the down payment for a new house is limited. It may not be possible to get it right. When the short-term memory is short of down payment funds, they will mortgage their existing house in exchange for the down payment of the new house.

The unsecured down payment loan is: no collateral, relying solely on "more stringent review" to provide house buyers with a loan of 200,000 to 300,000 for the down payment of a house - according to the current minimum for buying a first home Calculated with a 20% down payment, the leverage ratio for home purchase is 1:5. If the down payment loan accounts for half of the ratio, the leverage ratio for home purchase is enlarged to 1:10.

2. Is a down payment loan a "subprime mortgage"?

It is understood that there are three types of institutions that issue down payment loans to house buyers: First, developers or real estate agencies, through Self-operated Internet financial platforms provide down payment loan services to home buyers; second, developers or real estate agencies cooperate with third-party Internet financial institutions, with the former providing the down payment loan needs for home purchases, and the latter providing capital loans; third, independent Internet financial institutions Provide loan services.

The premise for this model to continue is that housing prices continue to rise. Once the property market declines, the probability of home buyers abandoning their homes and defaulting will increase. From this perspective, the idea of ??down payment loans is indeed close to "subprime mortgages".

Considering that in actual operation, real estate agencies may have the motivation to "package" the qualifications of lenders for the sake of successful transactions, and the lenders themselves may also conceal their true financial capabilities. This involves risks Not too big.

3. Down payment loans are extremely risky

Down payment loans allow many people to enter the property market with low down payment or even zero down payment, which magnifies the leverage of real estate investment. Most of the down payment loans on the market are products launched by some non-bank financial institutions or P2P online lending platforms. However, it is difficult for the personal information of loans from these institutions to be entered into the central bank's credit reporting system in a timely manner, which makes it difficult for banks to understand the true identity of the person who is taking the loan to buy a house. It is impossible to accurately judge whether a borrower has the ability to repay based on his or her debt situation. The increase in mortgage loan users will inevitably lead to a decline in the quality of bank mortgages and an increase in loan default rates.

For borrowers, the potential risks are very high. The characteristics of short down payment loan period and high interest rate put the borrower's repayment pressure very high. Coupled with the monthly payment of the mortgage loan, the double loan repayment pressure increases the cash flow pressure of the repayer, and the real estate transaction itself has a transaction cycle. The characteristics of long-term and large uncertainties are far less convenient and flexible than stock trading, and it is difficult to change hands and realize cash in the short term.

If the house price does not rise to the expected price, the final income may not be enough to pay the loan interest and transaction taxes.

Many of the funds for down payment loans are advanced from real estate agencies, and are eventually passed on to investors through P2P and other products. If house prices fall and cause losses to home buyers and they are unable to repay the loan, home buyers will usually first If you choose to return the bank loan, the safety of the investor's principal cannot be guaranteed.

Therefore, regulatory authorities will require commercial banks to strictly review housing loan applications. If the down payment funds come from highly leveraged financing loans, they should not issue loans.

Taking a down payment loan to buy a house will undoubtedly increase the cost of buying a house and increase the repayment pressure for home buyers. Therefore, it is best to make a scientific assessment of your current and expected future financial situation before deciding whether to buy a house in this way.