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How does refinancing your home work

how does refinancing your home work

Refinancing Mortgage in China

Posted on February 8, 2015

The Personal Mortgage Loan Refinancing    is a loan offered  to the borrower who has an outstanding personal housing loan in  another commercial bank,  for the purpose of  terminating and prepayment  of such existing loan.

Mortgage Features

1. The loan term is up to 30 years.

2. Interest rate is the rate of the same class and for the same period prescribed by PBOC, adjustable upwards or downwards according to particular circumstances, and not less than 85% of the corresponding benchmark rate.

3. The loan amount should not exceed the outstanding loan the borrower owes to the original lender.

4. Title deed of the housing unit.

5. Property sale (presale) contract or purchase agreement.

6. Housing sales invoice (for new housing) and certificate of deed

tax payment.

7. Personal housing loan contract made between the borrower and the original lender and the loan note.

8. Statement of the outstanding personal housing loan and records of monthly mortgage payments.

9. Documents on interim guarantee provided by the borrower.

10. Other documents required by ABC.

Repayment Options

ABC offers customers many options for repayment: straight line repayment, reducing balance method, equal increments (decrements), and fixed rate increments (decrements).

Mortgage contraction Borrowers who have outstanding personal housing loans at ABC may apply for contraction of the term or partial or full prepayment of their loans.

Mortgage transfer: The borrower resells the housing unit serving as collateral within the term of the personal loan, and the new purchaser applies to ABC for a loan to finance his/her purchase of that housing unit serving as collateral.

Category: Credit

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