If the applicant is purchasing a first home, a down payment of 30% or more of the house price is generally required.

The following is the calculation method for buying a house loan:

1. Equal principal and interest repayment method: monthly monthly payment = [loan principal × monthly interest rate × (1 + monthly interest rate)^ Number of repayment months〕÷〔(1+monthly interest rate)^Number of repayment months-1〕

2. Monthly interest payable = loan principal×monthly interest rate×〔(1+monthly interest rate) ^Number of repayment months-(1+monthly interest rate)^(Repayment month serial number-1)〕÷[(1+monthly interest rate)^Number of repayment months-1]

3. Monthly dues Principal repayment = loan principal × monthly interest rate × (1 + monthly interest rate) ^ (repayment month serial number - 1) ÷ [ (1 + monthly interest rate) ^ number of repayment months - 1 ]

Total Interest = number of repayment months × monthly payment - loan principal.

The total price of the house must not exceed the actual repayment ability. Although you need to spend tomorrow's money to buy a house today, the overdraft amount must be controlled within the effective solvency. The total purchase price of an ordinary home buyer should not exceed 6 times the annual household income, and the monthly repayment should not exceed 60% of the monthly income.

The smaller the down payment required, the better. The down payment for home buyers must not be less than 20% of the total house price. The larger the loan amount applied for, the smaller the down payment amount. By choosing a small down payment, you can use the rest of your funds for something else. Therefore, if a home buyer has extra savings and other better options, he or she can choose a smaller down payment, because the other payments may be greater than the loan interest.

The repayment period needs to be appropriate. The shorter the borrowing period, the lower the monthly payments. You should choose the repayment period based on your future income and expenditure and your stage of life. For the same loan amount, choosing a ten-year repayment period will cost more per month than choosing a twenty-year term, but the total repayment required will be less than that of a twenty-year term.

Legal basis:

"Personal Housing Loan Management Measures"

Article 4

The loan recipient should have full capacity for civil conduct natural person.

Article 5

The borrower must meet the following conditions at the same time:

1. Have a permanent urban residence or valid residence status;

2. Have a stable career and income, good credit, and the ability to repay the principal and interest of the loan;

3. Have a contract or agreement to purchase a house;

4. Those without housing subsidies. No less than 30% of the total price of the house purchased shall be used as the down payment for the house purchase; if there is a housing subsidy, 30% of the personal share shall be used as the down payment for the house purchase;

5. Approved by the lender Assets are used as mortgage or pledge, or a unit or individual with sufficient repayment capacity is used as a guarantor;

6. Other conditions stipulated by the lender.