1. Default risk

Even if the mortgagee is a bank, the borrower will still have default risk when applying for a real estate mortgage loan. Default risk includes forced default and rational default. Forced default means that the borrower is forced to default due to insufficient payment ability due to some reasons of his own. This means that the borrower has the willingness to repay, but does not have the ability to repay. Rational default means that the borrower defaults on his own initiative. Equity theory holds that in a perfect capital market, a borrower can make a decision whether to default or not simply by comparing the unique equity in his house with the size of his mortgage debt.

2. Liquidity risk

There are some risks in real estate mortgage loans, including liquidity risk. Liquidity risk refers to the risk that short-term deposits and long-term loans are difficult to realize. Today, the liquidity risk of real estate mortgage loans is reflected in the fact that my country's housing loans mainly come from provident funds and savings deposits. The savings deposits absorbed by banks are short-term deposits, generally only three to five years, while housing mortgage loans are long-term loans.

3. Business cycle risk

Business cycle risk is relatively rare and refers to the risk arising from the repeated fluctuations in the overall level of the national economy. Compared with other industries, real estate The industry is more sensitive to economic cycles.

4. Interest rate risk

I believe everyone knows that interest rate risk refers to the risk that changes in loan interest rates bring to the value of a bank's assets. Interest rate risk is determined by the capital structure of its business of short-term deposits and long-term loans. Fluctuations in interest rates will cause losses to banks whether they rise or fall. If interest rates rise, the interest rates on housing mortgage loans will also increase, which may increase the borrower's loan repayment pressure. The higher the loan amount and the longer the loan period, the greater the impact, thereby increasing the risk of default.

What information is needed for a real estate certificate mortgage loan?

Situations when a real estate certificate mortgage loan is required

1. There are problems with capital turnover in the business;

3. When the repayment ability is insufficient;

4. Relatives and friends at home need large sums of money due to illness;

5. Entrepreneurship, investment, etc.

House mortgage involves a large amount of funds, and the specific materials that need to be prepared are:

1. House title certificate.

2. Identity cards, household registers, marriage certificates, income certificates, etc. of both the applicant and the couple. If you are unmarried, only your own materials are required.

3. Other financial proof materials can be provided as supplements; such as bank statements, vehicle driving licenses, etc.

4. If the house belongs to a minor, a birth certificate is also required.

5. If you still have a mortgage, you need to provide the loan contract and the next bill.