Even if the mortgagee is a bank, there are default risks for the borrower to handle the real estate mortgage loan, including compulsory default and rational default. Compulsory breach of contract refers to the borrower's forced breach of contract due to his own reasons and insufficient ability to pay, which shows that the borrower is willing to repay, but unable to repay. Rational breach of contract refers to the borrower's active breach of contract. According to the equity theory, in a perfect capital market, the borrower can only make a decision whether to breach the contract by comparing the unique rights and interests in his house with the size of mortgage debt.

2. Liquidity risk

There are certain risks in real estate mortgage loan, including liquidity risk, which refers to the risk that short-term funds and long-term loans are difficult to realize. Nowadays, the liquidity risk of real estate mortgage loan is reflected in the fact that housing loans in China mainly come from provident fund and savings deposits. Savings deposits absorbed by banks belong to short-term deposits, generally only three to five years, while housing mortgage loans belong to long-term loans.

3. Business cycle risk

Economic cycle risk is relatively rare, which refers to the risk caused by periodic fluctuations in the overall level of the national economy. Compared with other industries, the real estate industry is more sensitive to the economic cycle.

4. Interest rate risk

As we all know, interest rate risk refers to the risk brought by the change of loan interest rate level to the value of bank assets. Interest rate risk is determined by the capital structure of its short-term deposit and long-term loan business, and the fluctuation of interest rate will bring losses to banks whether it rises or falls. If the interest rate rises, the interest rate of housing mortgage loans will also increase, which may increase the repayment pressure of borrowers. The higher the loan amount, the longer the loan term and the greater the impact, thus increasing the risk of default.