Description

A loan granted to the borrower to finance the purchase of the second-hand residential/commercial house.

Handling Guide

Requirements on Applicant

The applicant of the commercial house loan shall:

•  Be a natural person with full civil capacity, and hold valid local ID card or other ID documents;

•  Own rvalid certificates of local residence in the city of the handling bank with age below 55;

•  Be creditworthy with steady income;

•  Have the ability to pay the down payment that meets 30% (or higher) of the purchase price;

•  Open personal settlement account with the bank;

•  Meet other requirements prescribed by the bank.

Requirements on the Second-hand House

•  The second-hand house holds clear title with the certificate of ownership examined and ratified by the real estate authority and the certificate of land use right issued by the land administrative sectors.

•  The second-hand house shall meet listing requirements prescribed by the competent authority and is available to circulate in the house markets.

•  The real property that to be served as mortgage shall locate in urban areas of the handling bank and shall have strong cashability. The property value shall be appraised by the real estate appraisal agency designated by the bank.

•  The age of the residential second-hand house shall not exceed 10 years, and the commercial second-hand house 15 years.

•  The second-hand house is not listed in the municipal building demolition and reform plan.

•  No dispute on the title to the second-hand house: joint owners commit to sale and renters agree to move out.

•  No sales agreement with restrictive transfer conditions is signed between the borrower and the seller if the house is of house-reformed type.

•  The house shall meet other conditions required by the bank.

Line, Period and Rate

•  The commercial house loan can cover up to 70% of the appraised value from a real estate appraisal agency recognized by the bank.

•  Up to 20 years for second-hand residential house, and up to 10 years for second-hand commercial house.

•  In the case of loans within 1 year, the loan rate is contracted with no split of period upon rate adjustment.

•  For loans beyond 1 year, the loan rate is negotiated annually, and new rate will be quoted from Jan 1 of the next year if any rate adjustment occurs.

Repayment

Two repayment manners are available for loans within 1 year,

•  One-off repayment of the lump-sum principal and interest, and

•  Monthly/quarterly interest installment and principal and interest of the last period upon due.

For loan with period beyond 1 year, the repayment mode is negotiable in accordance with relevant regulations of the bank.