Houses are a very important part of most families. Without special circumstances or investment, most people will not choose to use their properties as mortgage loans. So, how many years can a personal real estate mortgage be borrowed? What are the risks of applying for a real estate mortgage loan? The editor below will take you to understand.
How many years can a personal real estate mortgage be loaned?
Generally, the maximum term of a personal real estate mortgage loan cannot exceed 30 years, but the loan term of a real estate mortgage loan is linked to the borrower's personal situation. . In addition, the term of a real estate mortgage loan is also closely related to the type of property. If it is a commercial mortgage loan, the loan term must not exceed 5 years. If it is a housing loan, the maximum loan term must not exceed 30 years.
What are the risks of applying for a real estate mortgage loan?
1. Default risk
There is a risk of default when applying for a real estate mortgage loan. This risk mainly includes being forced to default. and rational breach of contract. The so-called forced default refers to the passive behavior of the borrower. Forced default due to the ability to pay means that the borrower has the willingness to repay but does not have the ability to repay. Rational default refers to the borrower's own initiative. Breach of contract.
2. Liquidity risk
Liquidity risk is the risk that short-term deposits and long-term loans are difficult to realize. It is the first principle for every bank to ensure asset quality. Housing loans in our country mainly come from provident funds and savings deposits. Savings deposits are short-term deposits, usually only three to five years, while housing mortgage loans are long-term loans.
3. Economic cycle risk
Economic cycle risk refers to the risk arising from the repeated fluctuations in the overall level of our country’s economy. Compared with other industries, real estate has a significant impact on the economy. Cycles have higher sensitivity.
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