This kind of loan is actually a loan method in which the debtor (mortgagor) legally transfers the property ownership to the creditor (mortgagee) to obtain a loan. During this period, if the debtor fails to repay the loan principal and interest on schedule, the creditor has the right to dispose of the collateral and get priority compensation.
This loan method can reduce the loan risk of creditors and provide the most effective guarantee for creditors to recover their loans.
The use of mortgage loan in housing credit is based on the security, liquidity and profitability of bank operating funds.
Because the borrowers of this kind of housing loan are mostly individual residents, and it is impossible for banks to clearly understand the financial strength and credibility of borrowers, which increases the risk of bank loans, and mortgage loans provide creditors with effective protection to recover loans just under the condition of high loan risk.
Therefore, most banks use mortgage loans when granting housing loans to individual residents.
Extended data:
Housing loan processing requirements:
Housing requirements:
1. The property right of the house shall be clear, meet the listing and trading conditions stipulated by the state, and can be traded in the real estate market without other mortgage;
2. The age of the house (calculated from the date of completion of the house) and the loan period cannot exceed 40 years;
3. Mortgaged houses are not included in the local urban reconstruction and demolition plan, and there are real estate licenses and land certificates issued by real estate departments and land management departments;
The Lender requires:
China citizens who have a fixed residence in China, a fixed residence in a local town (or a valid certificate), have full capacity for civil conduct and meet the following conditions may apply for individual comprehensive consumption loans.
1, has a proper occupation and a stable income source, and has the ability to repay the loan principal and interest on schedule;
2. No illegal acts and bad credit records;
3. Being able to provide effective rights pledge guarantee recognized by the bank or legal and effective real estate as mortgage guarantee or a third-party guarantee with compensatory ability;
4. Open a personal settlement account of China Industrial and Commercial Bank, and agree that the bank will deduct the loan principal and interest from its designated personal settlement account;
5. Other conditions stipulated by the bank. ?
Reference source: Baidu Encyclopedia-Personal Housing Loan
Reference source: Baidu Encyclopedia-Housing Mortgage Loan