What are the benefits of a home mortgage loan? There are so many advantages!

For users who have real estate in their name, mortgage loans are a channel to obtain large amounts of funds. Many people think that mortgage loans are unreliable, so what are the benefits of home mortgage loans? Let’s find out together.

1. The interest rate is relatively low

Because the borrower provides the property as collateral, the lending institution takes relatively less risk and is more willing to give the borrower a lower interest rate.

Compared with other loan methods, it can save a lot of interest expenses and the repayment pressure is not that great.

2. Longer loan period

Compared with car mortgage loans, etc., the period of real estate mortgage loans is relatively long. Each bank is different. For loans using real estate mortgages, the loan period is generally 10-20 years, and the longest period can be up to 30 years.

3. The loan amount is higher

Since houses are fixed assets with high value, the amount the bank can provide is naturally much higher than other loan methods. The real estate mortgage loan amount can reach up to 70% of the appraised value of the property, usually 50%, which can solve the borrower's difficulty in obtaining a large loan.

4. The approval rate is relatively high

Mortgaging your house to a bank or private lending institution will definitely reduce the risk of lending. Because of this, in terms of other requirements, It will be relatively loose.

5. Flexible repayment methods

Generally, there are one-time principal and interest repayment method (especially refers to loans with a term of less than one year and one year), equal principal method and equal principal and interest method. Law.

6. Early repayment is possible

Before the loan matures, the borrower can pay off part or all of the loan in advance. However, according to the loan contract, an application must be submitted to the bank in advance. After approval by the bank, repayment must be made at the designated accounting counter.

The pros and cons of taking a house mortgage loan

The pros and cons of a house mortgage bank loan

1. Advantages of a house mortgage loan

1. Interest rate Relatively low. Due to the existence of collateral, housing mortgage loan interest rates are low, generally 10%-30% higher than the base interest rate. Relatively speaking, this advantage is obvious.

2. The loan period is longer, and the maximum loan period is 30 years, but the sum of the borrower’s age and the loan period shall not exceed 70 years.

3. The loan amount is relatively high. The loan amount is usually 50%-70% of the appraised value of the house, with a higher limit of 15 million yuan. Specifically, the mortgage rate for commercial housing can be as high as 70%; for office buildings and shops, the mortgage rate can be as high as 60%; and for industrial plants, the mortgage rate can be as high as 50%. Basically, it can meet the capital needs of the majority of borrowers.

4. The approval rate is relatively high. Mortgaging your house to a bank will definitely reduce the risk of lending to the bank, so the requirements in other aspects will be relatively relaxed. Borrowers only need to have a stable job and good credit to obtain a loan. Generally, banks do not have high requirements on the borrower's income level and salary payment form. (The form of cash disbursement requires self-storage records within half a year)

5. You can use other people’s houses as mortgage. Even if there is no real estate in the borrower's name but the borrower has the ability to repay the loan, he or she can use the real estate in the name of a relative or friend as collateral, provided that the mortgagor must issue a statement agreeing to the mortgage and the mortgagor must be at least 65 years old. It can be processed within the limit.

6. Flexible repayment methods. Different from the method, borrowers have a wider choice of repayment methods. Generally, there are one-time principal and interest repayment method (especially refers to the loan with a term of less than one year and one year), the equal principal method and the equal principal and interest method.

7. Mortgage once and use it repeatedly. Now many banks have launched a one-time mortgage and revolving loan method for houses. Take Bank of China's personal revolving mortgage loan as an example. It only requires users to go through the house mortgage procedure once, and it can support borrowers to borrow revolvingly within the credit limit and borrow at any time. Follow-up operations. Similar products from other banks are similar.

8. The borrower can repay the loan in advance. Before the loan maturity date, the borrower can pay off part or all of the loan in advance. However, according to the loan contract, an application must be submitted to the bank in advance. After approval by the bank, repayment must be made at the designated accounting counter.

After the loan is settled, the borrower should present his or her valid identity document and the loan settlement certificate issued by the bank to receive the legal certificate and relevant supporting documents held by the bank, and go to the original mortgage registration department with the loan settlement certificate to handle the mortgage registration cancellation procedures. .

2. Disadvantages of housing mortgage loans

1. Not all houses can be used as mortgages. Considering the problem of realizability of houses, banks usually stipulate that the mortgage period of the house should be about 25 years, and the house area should be greater than 50 square meters. In addition, most banks temporarily do not accept the purchase of affordable houses that are less than 5 years old, houses with small property rights, houses that cannot provide a house purchase contract, houses with unpaid loans, purchased public houses under agreement, centrally-owned houses that cannot provide listing certificates for centrally-owned houses, and leased houses. Factory buildings, office buildings, etc.

2. House appraisal requires the borrower to pay a certain appraisal fee, but the price is generally around 500 yuan.

3. There is a risk of the collateral being confiscated. When a borrower wants to repay but is unable to do so, he or she will inevitably face the risk of the collateral being confiscated. But how can we turn the crisis around? This requires you to understand the market first. When the real estate market price rises, the borrower can transfer the house to pay off the loan, recover the cost and earn a certain profit; when the real estate market price drops, the borrower can pass on the losses even if he defaults.

4. The lending speed is slow. Relatively speaking, mortgage loans are relatively slow due to the cumbersome application process. Generally speaking, it takes about a month after the borrower applies for a loan before the bank can disburse the loan.

What are the advantages of real estate mortgage loans?

Real estate mortgage loan is a common loan method. Although it is complicated at first, it is the preferred method for large loans. Compared with credit card loans, real estate mortgage loans can obtain better amounts and have low interest rates. In addition, what are the other advantages of real estate mortgage loans?

1. The expected annual interest rate is relatively low. Since the borrower has provided real estate as collateral, the risk that the bank has to bear has also dropped a lot. The risk that the lending institution has to bear is relatively small, and it is more willing to give the borrower a lower expected annualized interest rate;

< p>2. The loan period is longer. Compared with car mortgage loans, etc., the term of real estate mortgage loans is relatively long. , using real estate mortgage loans, the credit period is generally 10-20 years, and the longest credit period can reach 30 years;

3. The loan amount is relatively high. It is generally about 10 times the monthly income, but the real estate mortgage loan amount can be up to 70% of the appraised value of the real estate, which can solve the borrower's difficulty in obtaining a large loan.

4. The approval rate is relatively high. Mortgaging your house to a bank will definitely reduce the lending risk for the bank. Because of this, the requirements in other aspects will be relatively relaxed. The borrower only needs to have a stable job and good credit to obtain a loan. Generally, banks do not have high requirements on the borrower's income level and salary payment form. (The form of cash disbursement requires self-storage records within half a year)

5. Can use other people’s houses as collateral. Even if there is no real estate in the borrower's name but the borrower has the ability to repay the loan, the borrower can also use the real estate in the name of a relative or friend as collateral, provided that the mortgagor must issue a statement agreeing to the mortgage and must meet the age of the mortgagor. You must be under 65 years old to apply.

6. Flexible repayment methods. Different from the method, the borrower has a wider choice of repayment methods. Generally, there are one-time principal and interest repayment method (especially refers to the loan with a term of less than one year and one year), the equal principal method and the equal principal and interest method.

7. Mortgage once and use it repeatedly. Nowadays, many banks have adopted the method of one-time mortgage of houses and revolving loans. Take Bank of China’s personal revolving mortgage loan as an example. It only requires the user to apply for a house mortgage once, and it can support the borrower to borrow revolvingly within the credit limit and borrow at any time. Follow-up operations. Similar products from other banks are similar.

8. Repayment can be made in advance. Borrowing money when the loan is due can be used to pay off part or all of the loan in advance. However, according to the loan contract, an application must be submitted to the bank in advance. After approval by the bank, repayment must be made at the designated accounting counter. After the loan is settled, the borrower should present his or her valid identity document and the loan settlement certificate issued by the bank to receive the legal certificate and relevant supporting documents collected by the bank, and then go to the original mortgage registration department with the loan settlement certificate to apply for mortgage registration cancellation. formalities.

Finally, borrowers are reminded that although real estate mortgage loans can obtain loans with higher amounts and lower interest rates, the procedures are relatively complicated and borrowers need to weigh and consider based on their actual situation.

Advantages and Disadvantages of Mortgage Loans

When people encounter financial difficulties, some people will choose it because they do not need collateral; others will choose mortgage loans. Because you have collateral, it is easy to get a loan, but many people are still not fully aware of the advantages and disadvantages of mortgage loans. So, today I’ve compiled the following for you.

1. Advantages of mortgage loans

1. Higher loan amount

Mortgage assets generally have a relatively large value. Judging from the situation in our country, the vast majority of enterprises use real estate as mortgage, and a few use fixed assets such as machinery and equipment as mortgage at the same time as real estate. There are also very few companies that use the entire company's net assets as collateral. This is all because the value of the mortgaged assets must match the amount of the loan, and among the various assets of a company, there are often huge investments in fixed assets such as housing, land, or projects under construction, which can meet the requirements of the mortgage loan.

Some individuals will use their cars as collateral for loans. No matter what kind of asset it is, it is directly proportional to the loan amount. In terms of loan amounts, mortgages are much higher.

2. The expected annualized interest rate of the loan is low

Because there is sufficient collateral, the borrower's expected annualized interest rate is lower. This low expected annualized interest rate is greatly reduced. costs to the borrower.

3. Long loan term

The term of a mortgage loan can be long or short, it can be one year or 20 years. In this way, borrowers will have more choices, and they can choose the one that suits them according to their own circumstances.

4. During the mortgage period, the property rights of the mortgaged assets still belong to the borrower

The mortgagor only gives the mortgagee the power to deal with its assets if the mortgagee cannot repay on time to ensure that Recovery of Loans. Therefore, during the mortgage period, the property owner can still use all its assets normally.

2. Disadvantages of mortgage loans

1. High loan threshold

Take house mortgage loans as an example. Not all houses can be used as mortgages. Considering the problem of realizability of the house, banks usually stipulate that the age of the mortgaged house should be about 25 years, and the house area should be greater than 50 square meters. The purchase of affordable houses less than 5 years old, houses with small property rights, houses that cannot provide a house purchase contract, houses with unpaid loans, etc. are all within the restricted scope.

2. The process is complex and costly

For common mortgage loans, house appraisal requires certain fees, such as appraisal fees, notary fees, mortgage registration fees or insurance premiums, etc. You need to pay a car value appraisal fee for a car loan. If you don't pledge the car, you need to pay a GPS installation fee and a rental fee, and you need to pay a handling fee. The whole process is complicated and costly.

3. Risk of collateral being confiscated

When a borrower wants to repay but is unable to do so, he will inevitably face the risk of collateral being confiscated. However, it is also called an unsecured loan, or a credit loan. It does not require any collateral. It only requires proof of identity, proof of income, proof of address and other materials. If you apply for a loan from a bank, the bank will issue the loan based on the individual's credit situation. ?

What are the advantages of real estate mortgage loans?

Many people use real estate as mortgage when buying a house because they do not have enough funds. This can reduce the pressure caused by buying a house. It is now quite popular. . So what are the advantages of real estate mortgage loans? Let’s take a look with the editor below.

1. The loan amount is higher

Because the value of the house is relatively high and it is a fixed asset, the amount of the loan from the bank is much larger than other loans. For example, if a lender needs to lend a large amount of money, it only needs to provide the bank with a high-value property as collateral.

2. Low loan threshold

Low loan threshold is a great advantage of real estate mortgage. No matter what occupation you are engaged in, whether you are a business operator or even a freelancer, as long as you get a loan If the purpose is reasonable and a house can be provided to the bank for mortgage, then the chance of the loan being approved is relatively high. Other types of loans not only have more requirements, but are also not easy to review, especially the personal credit reference is very strict. For example, if you use a vehicle to get a loan, because the vehicle is a chattel mortgage, its requirements will be higher.

3. The loan period is longer

If you use a house mortgage to get a loan, the loan period will be longer, usually 10 to 20 years, and the longest may even be 30 years.

For lenders, it can increase the length of loan use and reduce the pressure of repayment at the same time. Because real estate is used as collateral, the mortgage bank's risk will be smaller.

4. Loans are widely used

There are relatively few restrictions on using real estate as collateral, and it is legal for consumption, business, etc. When borrowing from a bank, the bank will clearly understand the purpose of the loan. For example, the loan cannot be used for stock trading or other high-risk investment activities.

5. There are many repayment methods

Using real estate as a mortgage loan, there are many repayment methods available to the lender, such as equal principal and interest and equal principal. Investors can choose a loan method that suits them.

Editor’s summary: The above is the relevant explanation about the advantages of real estate mortgage loans. I hope it can be helpful to the majority of friends.