Is mortgage loan a farmer loan? What are the requirements for application?

Nowadays, when people are short of money, the first thing they think of is to ask for a bank loan. Especially when buying a house or a car, they like to use mortgage loans to repay the loan. So, are mortgage loans farmers’ loans? What are the requirements for application?

1. Is mortgage loan a farmer’s loan?

Mortgage loans are not farmer loans. It refers to a loan business conducted in the form of mortgage. For example, a housing mortgage loan is a personal housing loan business in which the buyer uses the purchased house as collateral and the real estate company of the purchased house provides a phased guarantee. Mortgage refers to the mortgagor transferring the property rights of the house to the mortgage. The beneficiary, as the loan repayment guarantor, immediately transfers the property rights of the house to the mortgagor after the mortgagor repays the loan. The mortgagor enjoys the right to use the house during the process.

2. What are the requirements for applying for a mortgage loan?

1. Borrower requirements

(1) Natural persons aged 18-60 (Hong Kong, Macao, Taiwan and foreign nationals are also accepted)

(2) Have a stable job, stable income, and the ability to repay the loan principal and interest on time

(3) The borrower’s actual age plus the loan application period should not exceed 70 years old

2. Information required:

(1) Original and three copies of the applicant’s and spouse’s ID card and household registration (if the applicant and spouse are not registered in the same household, a separate marriage certificate is required).

(2) The original copy of the purchase agreement.

(3) An original and a copy of the advance payment receipt for 20% or more of the room rate.

(4) Documents proving the applicant’s family income and related assets, including pay slips, personal income tax returns, income certificates issued by employers, bank deposit receipts, etc.

(5) A copy of the developer’s payment account number.

3. Materials that the borrower should provide:

(1) Identity cards and household registration books of both spouses; non-local residents need temporary residence permit and household registration book.

(2) Two copies of marriage certificate, divorce certificate or court judgment, or certificate of singleness.

(3) Proof of income (in the format specified by the bank).

(4) A copy of the business license of the employer (with official seal).

(5) Proof of credit: including academic certificates, other real estate, bank statements, large-denomination certificates of deposit, etc.

(6) If the borrower is a corporate entity, it must also provide a business license that has undergone annual inspection, a tax registration certificate, an organization code certificate, corporate articles of association, and financial statements.

4. Special circumstances

Documents required for foreigners to purchase a property:

(1) Taiwanese: Mainland Travel Permit (Taiwan Compatriot Permit), Household Registration Certificate (to prove marital status), Beijing Housing Purchase Approval Form, and Mortgage Notarization Certificate (to entrust the processing of later collection of property deeds and mortgage registration).

(2) Hong Kong citizens: Hong Kong identity card, marriage certificate, mortgage notarization (for entrusting the processing of later collection of property title and mortgage registration).

(3) For Koreans: notarized Chinese translation of passport, notarized Chinese translation of name, notarized Chinese translation of household register (to prove marital status), and notarized mortgage certificate (for entrustment to handle subsequent collection of property title and mortgage registration).

(4) Other nationalities: notarized Chinese translation of passport, notarized Chinese translation of name, notarized Chinese translation of marriage certificate, and notarized mortgage certificate (for entrustment to handle the subsequent collection of property deeds and mortgage registration).

Generally speaking, mortgage loans are not farmer loans, but a type of loan business conducted in the form of mortgages, which is generally used when buying a house. When applying, the borrower must be over 18 years old, have a stable job, stable income, and the ability to repay. There are benefits for entrepreneurs who need loans in 2020!