What does a mortgage loan mean?

A mortgage loan refers to a loan business based on mortgage housing. If you want to get a mortgage loan, you can first consult the bank that handles the loan for relevant information, and then choose Real estate, apply for a mortgage loan, sign a house purchase contract and mortgage contract, and finally handle mortgage registration.

Legal Basis

Article 42 of the "Law of the People's Republic of China on Commercial Banks"

The borrower shall repay the principal and amount of the loan on time. Interest.

If the borrower fails to repay the guaranteed loan when due, the commercial bank shall have the right to require the guarantor to repay the loan principal and interest or receive priority repayment of the collateral in accordance with the law. Real estate or equity acquired by a commercial bank due to the exercise of mortgage or pledge rights shall be disposed of within two years from the date of acquisition.

If the borrower fails to repay the credit loan when due, he shall bear the responsibility according to the contract.

The word "mortgage" is originally a local dialect and is more common in Hong Kong, Macao and Taiwan regions of China. Since the late 1980s, it has gradually appeared in mainland my country from south to north. Except for the Hong Kong Special Administrative Region, there is no mortgage requirement in Chinese law. Before Hong Kong returned to the motherland, Hong Kong's mortgage regulations were divided into broad and narrow definitions. A mortgage in a broad sense refers to any form of pledge (a pledge is a mortgage of movable property) and a mortgage; a mortgage in a narrow sense refers to the transfer of real estate to the name of the lender, and then the real estate is transferred back to the borrower (mortgagor) after the loan is paid off. under the name. There are certain differences between the mortgages stipulated in the "Urban Real Estate Management Law" and the "Security Law" and the mortgages in Hong Kong. That is, the definition of mortgages in these two laws is conditioned on the non-transfer of possession. "Mortgage" has two meanings: real estate mortgage and installment payment. Refers to a type of loan issued by a bank to a natural person with full capacity for civil conduct to purchase a self-occupied house, using the purchased property as collateral as a guarantee for repayment of the loan, and repaying the principal and interest of the loan on a monthly basis. They are divided into personal housing commercial loans (referred to as commercial loans) and personal housing provident fund loans (referred to as provident fund loans). Specifically, a mortgage loan means that a home buyer obtains a loan from a bank using the purchased building as collateral. The home buyer pays the bank in installments in accordance with the repayment method and period specified in the mortgage contract; the bank charges interest at a certain interest rate. If the lender defaults, the bank has the right to seize the home.

What is a mortgage loan?

A mortgage loan refers to a type of loan business in the form of a mortgage. For example, a home mortgage loan is a personal home loan business in which the home buyer uses the home purchased as a mortgage and the real estate company where the home is purchased provides a periodic guarantee. The so-called mortgage means that the mortgagor transfers the property rights of the house for mortgage, and the beneficiary serves as the guarantor for the loan repayment. After the mortgagor repays the loan, the beneficiary immediately transfers the property rights of the house involved to the mortgagor, and the mortgagor enjoys the right to use it during the process.

Mortgage loan application procedures

The specific procedures for home buyers to apply for real estate mortgages are as follows:

(1) If buyers who choose real estate want to obtain real estate mortgage services, they must You should focus on understanding this aspect when choosing a property. When home buyers learn from advertisements or introductions from salespeople that mortgage loans are available for some projects, they should further confirm whether the properties developed and constructed by the developers are supported by banks to ensure the smooth acquisition of mortgage loans.

(2) When applying for a mortgage loan, after confirming that the property of your choice is supported by the bank’s mortgage, the home buyer should learn from the bank or the bank’s designated law firm about the bank’s regulations on the mortgage loan support for the home buyer. Prepare relevant legal documents and fill in the "Mortgage Loan Application Form".

(3) After signing the house purchase contract, the bank receives the legal documents related to the mortgage application submitted by the house buyer. After reviewing and confirming that the house buyer meets the conditions for the mortgage loan, it will issue the buyer a loan consent notice or a mortgage loan commitment letter. . Home buyers can sign a "Commercial Housing Pre-sale and Sales Contract" with the developer or its agent.

(4) After signing the real estate mortgage contract, the buyer signs the house purchase contract and obtains the proof of payment of the house payment, and signs the "Building Mortgage Loan Contract" with the developer and the bank with the relevant legal documents prescribed by the bank. Clarify the mortgage loan amount, term, interest rate, repayment method and other rights and obligations.

(5) Mortgage registration, insurance house buyers, developers and banks should go to the real estate management department to handle mortgage registration and filing procedures with the "Building Mortgage Loan Contract" and the house purchase contract. For off-plan properties, mortgage changes must be registered after completion. Under normal circumstances, because the mortgage loan period is relatively long, banks require home buyers to apply for life and property insurance in order to prevent loan risks. When a home buyer purchases insurance, the bank should be listed as the first beneficiary. The insurance must not be interrupted during the loan performance period, and the insurance amount must not be less than the total value of the mortgage. The insurance policy is handed over to the bank until the loan principal and interest are repaid.

(6) Open a special repayment account. After signing the "Building Mortgage Loan Contract", the home buyer shall, in accordance with the contract, open a special repayment account at a financial institution designated by the bank and sign a letter of authorization. , authorizes the institution to pay the bank's loan principal, interest and arrears related to the mortgage loan contract from the account. The bank confirms that the home buyer meets the mortgage loan conditions and fulfills the obligations stipulated in the "Building Mortgage Loan Contract". After completing the relevant procedures, the loan will be transferred to the developer's bank supervision account at the bank at one time as the purchase price of the home buyer.

What does home mortgage mean?

Hello, a mortgage loan refers to a credit behavior in which the applicant applies for a loan from the bank to pay for the house for the purpose of purchasing a house, and then repays the loan to the bank in installments over a certain period of time, and the bank charges interest at the same time. For example, a housing mortgage loan is a personal housing loan business in which the home buyer uses the house purchased as a mortgage and the real estate company where the house is purchased provides a periodic guarantee. The so-called mortgage means that the mortgagor transfers the property rights of the house for mortgage, and the beneficiary serves as the guarantor for the loan repayment. After the mortgagor repays the loan, the beneficiary immediately transfers the property rights of the house involved to the mortgagor, and the mortgagor enjoys the right to use it during the process.

What is a mortgage loan?

Mortgage loan means that the home buyer uses the property rights of the purchased house as collateral, and the bank pays the house payment to the developer in advance. After that, the home buyer pays the principal and interest to the bank in monthly installments. The bank mortgage ratio is usually The ratio ranges from 50% to 80%, and the term ranges from 1 year to 30 years.

It is divided into first-hand house mortgage and second-hand house mortgage. First-hand property mortgage loan means that when the applicant (house buyer) purchases a property from a real estate developer, he or she pays the down payment first, and the rest is borrowed from the bank, and uses the equity of the purchased property as collateral to repay the principal and interest in installments. A second-hand property mortgage loan means that when the borrower (house buyer) purchases a house from the seller that has full legal property rights (real estate certificate has been obtained) and can be put on the market, he or she pays the down payment first, and the remaining part is financed by a bank loan. The real estate equity is used as a mortgage and the principal and interest are repaid in installments. The lender's loan period is that the sum of the borrower's age and the loan term cannot be greater than 60 years.

Mortgage loans are a common phenomenon in current home purchase contracts and play a vital role in promoting the development of real estate. It should be noted that the approval of mortgage loans requires compliance with relevant conditions. On the one hand, banks must The personal income of the party concerned will be reviewed and proof of income needs to be provided. If it is found after the review that the party concerned cannot afford the mortgage loan, the bank will generally not grant the loan, that is, it will not approve it.

What does a mortgage loan mean?

A mortgage loan refers to a credit behavior in which the applicant applies for a loan from the bank to pay for the house for the purpose of purchasing a house, and then repays the bank loan in installments according to a certain period of time. At the same time, the bank charges a certain amount of interest.

How to apply for a mortgage loan as an individual

1. Loan application: After confirming that the property you choose is supported by a bank mortgage, the home buyer should inquire about the bank or the bank’s designated law firm. Regarding the regulations for home buyers to obtain mortgage loan support, prepare relevant legal documents and fill out the "Mortgage Loan Application".

2. Sign a house purchase contract: The bank receives the legal documents related to the mortgage application submitted by the house buyer. After reviewing and confirming that the house buyer meets the conditions for the mortgage loan, the bank will issue a loan consent notice or a mortgage loan commitment letter to the house buyer. . Home buyers can sign a "Commercial Housing Pre-Sale Contract" with the developer or its agent.

3. Sign a building mortgage contract: After signing the house purchase contract and obtaining the proof of payment of the house payment, the home buyer shall sign a "Mortgage Loan Contract" with the developer and the bank with the relevant legal documents specified by the bank. Loan amount, term, interest rate, repayment method, etc.

4. Handle mortgage registration and insurance: Home buyers, developers and banks should go to the real estate management department to handle mortgage registration and filing procedures with the "Mortgage Loan Contract" and the house purchase contract.

5. Open a special repayment account: After signing the "Mortgage Loan Contract", the home buyer will open a special repayment account at a financial institution designated by the bank according to the contract and sign a letter of authorization. Authorizes the institution to pay loan principal, interest and arrears due to the bank and mortgage loan contract from the account.

What does it mean to buy a house with a mortgage?

Since many people are buying a house for the first time, they are not clear about many concepts. So what does it mean to buy a house and get a mortgage? PChouse will take you to learn more about it.

A home purchase mortgage means that the mortgagor mortgages the house he plans to purchase to the bank, and the bank issues a loan based on the current value of the house. The mortgagor needs to repay the principal and interest of the loan in accordance with the provisions of the contract, and then the bank will return the mortgaged house. If the mortgagor defaults, the bank will seize the mortgaged house.

Mortgage refers to using real estate and other physical assets or securities, contracts, etc. as collateral to obtain a bank loan and pay off the principal and interest in installments according to the contract. After the loan is repaid, the bank returns the collateral. Mortgage means that the mortgagor transfers the property rights of the property for mortgage, and the beneficiary serves as the repayment guarantee. After the mortgagor repays the loan, the beneficiary immediately transfers the property rights of the house involved to the mortgagor, and the mortgagor enjoys the right to use it during the process.

That’s it for the introduction to what a house mortgage loan is.