Service Features Target Clients Applicant's Qualification
Loan Limit Loan Period Interest Computation How to Apply
To buy a house, you (natural person) may surrender the house you (applicant) intend to buy, or other property in your possession, or a property owned by a third party as a mortgage, or you may secure joint- liability guaranty from a third party, to apply for personal housing mortgage loans from China Merchants Bank.
Service Features
1. Payback period up to 30 years;
2. Most favorable interest rate offered;
3. Even amount monthly installments or decreasing-amount monthly installment: flexible choices and easy payback burden;
4. House purchased as mortgage, no need for extra guaranty.
Target Clients
Natural persons with full civil rights.
Applicant's Qualifications
Applicants must have valid identity proof; be capable of repaying loans and due interest in time; stable income; signed housing sales contract or pre-sales contract; assets accepted by CMB as mortgage or collateral; or have secured joint-liability guaranty from a third party with sufficient capacity of repaying principal and due interest for applicant.
For house purchased – should be structurally accomplished, land fee fully paid, all formalities secured, quality-check passed; and satisfying all conditions as required by related authorities for issuance of house property certificate or having already secured house property certificate; with ideal location and high liquidity.
Loan Limit
1. Those who intend to use the house they have purchased as mortgage for loans should surrender the full value of the house for the mortgage;
2. The loan limit usually does not exceed 80 percent of its purchase price for first-hand house;
3. For second-hand house, the object should be less than 10 years old with house property certificate and no structural defect or dispute; and the maximum loan limit should not exceed 70 percent of the current net value assessment of the mortgage, or 70 percent of the purchase price, whichever is lower.
Loan Period
1. No longer than 30 years for first-hand house;
2. No longer than 20 years for second-hand house.
Interest Computation
1. Interest rates: as per interest rates announced by People's Bank of China for the same terms, subject to variance allowed by PBOC.
2. Interest rate adjustment: adjusted every month according to the prevalent interest rates.
3. Other rules: Extension period interest rate and penalty interest rate is set according to the rules of People's Bank of China.
How to Apply
1. Application: Applicant please carries the following documents to the specified banking offices and fills in application forms:
Valid ID and marital status proof;
Mortgage/collateral proof documents, guaranty proof documents (applicable to those relying on guaranty offered by a third party)
2. Examination and Approval: The bank investigates the applicant's guaranty and credibility, examines and approves the application according to a set of rules; the bank informs the applicant the results after all the examinations.
3. Signing of Contract: Upon approval from the bank, the applicant goes through the following formalities:
Applicant applies for automobile consumption loan credibility insurance;
Applicant signs loan contract and relative guaranty contract with the bank; secure notary, insurance and mortgage/collateral registration.
4. Release of loan: After applicant finished all procedures, China Merchants Bank releases the loan to personal account of the applicant; and upon the applicant's instruction, the bank transfers the proceeds to the account of beneficiary.
