If the family is not short of money, has little monthly payment pressure, or is buying a house for investment, it is recommended to choose a 20-year loan term. Firstly, the interest will be relatively small, and secondly, the loan can be paid off as soon as possible. ; If the home buyer is purchasing a home for self-occupation, marriage, childcare, or retirement, it is recommended to choose a 30-year loan term. Because this is a watershed moment in life, there are a lot of potential expenses, especially for families with children or even second children, education expenses and childcare expenses are each a huge expense. At this time, it is best for us to reduce the monthly payment pressure as much as possible and balance expenditures in all aspects while maintaining the quality of life.

What factors affect the loan period?

1. Property nature

The property property is one of the factors that affects the loan period, such as commercial housing and commercial and residential buildings. The maximum loan period for dual-use houses shall not exceed 10 years, while for private property transfer houses and auction houses, the bank stipulates that the maximum loan period shall not exceed 20 years.

2. Age of the house

When a home buyer applies for a mortgage, the age of the house also has a great impact on the loan term. Generally speaking, if the property is over 20 years old, it is very easy to be rejected by the bank. It is easier to apply for a loan for a newer property, and the loan period will be longer.

3. The borrower’s financial strength

When applying for a provident fund loan, home buyers should note that banks will have stricter requirements for high-income people. Therefore, high-income people need to pay special attention when applying for provident fund loans. Generally, the higher the deposit amount, the shorter the loan period, which is often overlooked.

What should you pay attention to when buying a house with a mortgage loan?

1. Request the loan amount

Before taking a loan, you must calculate the amount of loan required. The loan amount does not include the down payment, which is paid in advance. Generally speaking, the higher the down payment ratio, the shorter the payment period, and the lower the monthly supply pressure. The basic loan amount is the total house price minus the down payment. In addition, various taxes such as deed tax and value-added tax must be taken into consideration.

2. Choose a good mortgage loan bank

With the development of the real estate market, many banks have developed products for home purchase loans. Home buyers can shop around to see which one has more favorable policies and is more suitable for them, and choose a suitable loan bank based on the actual situation.

3. Choose the correct repayment method

Generally speaking, there are two repayment methods: one is equal amounts of principal and interest, and the other is equal amounts of principal. Both methods have advantages and disadvantages. Lenders need to choose the appropriate repayment method based on their own circumstances.

4. The information provided to the bank must be true

When a home buyer applies for a bank loan, the bank will generally require the lender to provide corresponding proof of economic income. Home buyers should provide genuine proof of personal employment, position and recent financial income. If the lender provides false documentation, this will cause the bank to reduce its trust in you and affect the loan.