Personal
Housing Loan Products
Personal Housing Loans
Personal Second-hand Housing Loans
Personal Provident Fund Loans
Special Notes
Repayment Methods
China Construction Bank was the first Chinese bank to
offer personal housing loans in the mid-1980s. For almost 20 years, CCB has made a major contribution to China¡¯s
reform of its housing system and to consumers. Currently, CCB offers a wide variety of
personal housing loan products, ranging from loans for new housing
to loans for second-hand housing; from accumulation fund loans,
CCB commercial loans, to a combination of these two; from RMB loans
to foreign currency loans; from loans for residential housing to
loans for commercial, parking and office space; from loans for commercial
housing to loans for economy, reform, and pooled housing; from loans
for housing alone to loans for a combination of housing and automobile
purchase, or for a combination of housing and decoration. Derivatives on housing loans have been
offered by CCB branches for many years to meet various client needs.
Personal
Housing Loans
1. Loan Use: Personal housing loans are used to fund
purchase or major maintenance of urban housing within the mainland
of China. Currently
the major product is the ¡°mortgage plus temporary guarantee¡± personal
housing loan.
2. Target Clients: Chinese citizens who have full legal
capability, residents of Hong Kong, Macau and Taiwan who have permission
to reside in the mainland and who have full legal capability, and
foreign nationals who have permission to reside in the mainland
and who have full legal capability.
3. Eligibility: The borrower must meet the following
criteria: A. legal status; B. a stable income, creditworthiness,
and the ability to repay both principal and interest; C. a valid
contract or agreement for the purchase or major maintenance of housing,
and other documents required by CCB; D. 20% of the purchase or maintenance
price, reserved for the down payment; E. mortgaged or pledged property
acceptable to CCB; or an organization or person capable of making
payment as guarantor; F. other criteria set by CCB.
4. Loan limit: 80% of the total purchase (or maintenance)
price or valuation (the lower)
5. Loan term: 30 years maximum
6. Interest: 4.77% for loans with terms under five years
(or with terms of five years); 5.04% for loans with terms over five
years. (effective on
February 21, 2002.)
7. Required documents for loan application
An application for Personal Housing Loans;
Photocopies of identification (personal identification,
household registration book, or military officer certificate; passport,
family-visiting pass, or home-returning pass)
Acceptable statements of stable income, or other statements
of the capability to make payment;
A legal purchase (or maintenance) contract, agreement
or other documents;
A list of mortgaged property or pledged rights, along
with title to such property or rights, statement from the mortgagor
or pledgor, and report issued by an appraiser recognized by CCB
on the valuation of the mortgaged property;
The guarantor¡¯s written commitment and statement of his
or her financial capability;
CCB certificates of deposits, certificate treasury bonds,
and other securities the debtor intends to offer to CCB as pledged
rights;
A statement of self-raised funds which the debtor intends
to use for the purchase;
Photocopies of housing (pre-) sale permit, or building
property title (available housing);
If the applicant¡¯s spouse co-applies, information on
the spouse must be provided on the application, and the marriage
certificate and household registration book must be presented;
Other documents and information required by CCB.
8. Client Loan Application Process:
File an application. The client must file a written loan application with the bank,
and submit the required documents.
Sign a contract.
The loan applicant must sign a loan contract and a guaranty
contract with CCB after receiving loan approval; when necessary,
notarization, mortgage registration and insurance purchase must
be completed.
Open an account.
If the client intends to repay the loan by automatic deposit,
he or she must sign an automatic deposit agreement with the bank,
and open a savings account or credit card account specifically for
loan repayment at an outlet designated by CCB.
Meanwhile, the property seller must open a settlement account
or special deposit account with CCB.
Disburse the loan. After the loan application is approved, and the paper work
is processed, CCB will disburse the loan to the creditor¡¯s deposit
account with CCB, or to the property seller¡¯s deposit account with
CCB as a lump sum or on installments.
Make timely payment. The creditor must repay both the principal and interest according
to the payment plan and methods specified in the contract. Currently two payment methods are available,
namely automatic deposit and over-the-counter payment.
Pay off the loan. A loan may be settled before or at maturity. Loan settlement before maturity refers
to loan settlement before the due date (for loans whose principal
and interest are repaid as a lump sum) or before the due date for
the last installment (for loans paid on installments).
If repaying all loan balances before maturity, the debtor
must give CCB ten business days¡¯ notice for loan settlement.
After the loan is settled, the debtor receives a ¡°Loan Settlement
Certificate¡± from CCB and takes over the original copy of the mortgage
registration certificate and of the insurance certificate. Then he or she may present the ¡°Loan Settlement
Certificate¡± to the office where the mortgage was originally registered,
and have the registration cancelled.
For detailed information on loan interest and payment
amounts, please refer to the ¡°Payment Methods.¡±
Personal
Second-hand Housing Loans
1. Loan Use: Personal second-hand housing loans are used
to fund purchase of second-hand housing.
2. Target Clients: Chinese citizens who have full legal
capability, residents of Hong Kong, Macau and Taiwan who have permission
to reside in the mainland and who have full legal capability, and
foreign nationals who have permission to reside in the mainland
and who have full legal capability.
3. Eligibility: The borrower must meet the following
criteria: A. legal status; B. a stable income, creditworthiness,
and the ability to repay both principal and interest; C. a valid
contract or agreement for the purchase of housing; D. the seller¡¯s
indisputable title to the property whose sale must be allowed, E.
20% of the valuation or purchase price (the lower); F. security
acceptable to CCB; G. other criteria set by CCB.
4. Loan limit: 80% of the valuation or total purchase
price (the lower)
5. Loan term: 30 years maximum, and subject to the expiration
of the right to use the purchased property.
6. Interest: 4.77% for loans with terms under five years
(or with terms of five years); 5.04% for loans with terms over five
years. (effective on
February 21, 2002.)
7. Required documents for loan application
Application for Personal Housing Loans;
Photocopies of identification (personal identification,
household registration book, or military officer certificate; passport,
family-visiting pass, or home-returning pass)
Acceptable statements of stable income, or other statements
of the capability to make payment;
Legal and valid purchase contract or agreement signed
with the seller (and co-seller)
Title to the property proposed for purchase, and a written
statement of the co-seller¡¯s intent to sell the property;
Report issued by an appraiser recognized by CCB on the
valuation of the mortgaged property;
The guarantor¡¯s written commitment and statement of his
or her financial capability;
If the proposed property was previously public property
but approved for sale to a private party, a statement from the previous
owner organization of its approval and of proceeds distribution
must be provided.
List of mortgaged property or pledged rights, along with
title to such property or rights, and statement from the mortgagor
or pledgor
Statement of self-raised funds which the debtor intends
to use for the purchase;
If the applicant¡¯s spouse co-applies, information on
the spouse must be provided on the application, and the marriage
certificate and household registration book must be presented;
Other documents and information required by CCB.
8. Client Loan Process: the same as that for personal
housing loans.
9. For detailed information on loan interest and payment
amounts, please refer to the ¡°Payment Methods.¡±
Personal Provident Fund Housing Loan
1. Loan Use: CCB disburses personal housing loans out of
provident funds on behalf of institutions that manage the funds. Such loans are used to fund purchase of urban housing in the
mainland of China.
2. Target Clients: Persons who have full legal capability
and who make provident fund payment on time and in the right amount.
3. Criteria: The applicant must comply with the regulations
of institutions that manage the provident fund housing loan. He or she must also meet the following
criteria: A. legal status; B. making provident fund payment on time
and in the right amount; C. a stable income, creditworthiness, and
the ability to repay both principal and interest; D. a legal and
valid contract or agreement for the purchase or major maintenance
of housing, and other documents required by CCB; E. the minimum
self-raised funds required by the local managing institution of
the provident fund , reserved for the down payment; F. mortgaged
or pledged property or rights acceptable to CCB, or an organization
or person that is capable of loan repayment as guarantor; F. other
criteria set by the local managing institution of the provident
fund.
4. Loan Limit: set by the local managing institution
of the provident fund;
5. Loan term: set by the managing institution of the
provident fund on a case-by-case basis, subject to the maximum loan
term stipulated by the PBC.
6. Long interest: set by the PBC for provident fund housing
loans, currently at the following annual rates:
For
loans with a term under five years (or a term of five years): 3.6%;
For loans with a term
above five years: 4.05%.
7. Required Documents
When making an application, the client must provide the
following documents:
An application for the provident fund housing loan;
Identification (resident identification, household registration
book, or other identification documents)
A statement from the employer of stable income, or other
statements showing the ability to make repayment;
A legal contract, agreement or statement of approval
for the purchase;
A list of mortgaged property or pledged rights, title
to such property and rights, and a statement from the mortgagor
or pledgor;
A report issued by an appraiser acceptable to the managing
institution of the provident fund on the valuation of the mortgaged
property;
A written commitment from the guarantor and statement
of the guarantor¡¯s financial capability;
Statement of funds raised by the debtor for the purchase;
Other documents and information required by the managing
institution of the provident fund .
8. Client Loan Process:
Make an application. The loan applicant must file a written application and supporting
documents with CCB, which will forward them to the managing institution
of the provident fund, or with the latter directly.
Sign a contract and open a deposit account. After the managing institution of the
provident fund approves the application, CCB informs the applicant
that he or she may sign the loan contract and guaranty contract. If the debtor chooses to repay the loan by automatic deposit,
he or she must open a savings or credit card account at CCB.
Register the mortgage and purchase housing insurance.
After signing the contracts, the debtor must register the
mortgage and finish other paper work as required by national and
local law and regulations. The mortgage registration fee must be paid by the debtor, and
during the mortgage, CCB keeps the original copy of the insurance
policy.
Disburse the loan. After the debtor fill out a loan deposit form at CCB, CCB disburses
the loan to the property seller¡¯s special account at CCB as a lump
sum or on installments, or to the debtor¡¯s deposit account at CCB.
Make timely payment. The debtor must authorize automatic deposit or make payment
over the counter according to the repayment plan and method specified
in the loan contract.
Loan settlement.
If the debtor pays off the loan before loan maturity, he
or she must apply for loan settlement in advance to CCB or to the
managing institution of the provident fund.
The managing institution reviews the application.
After settling the loan, the debtor receives a ¡°Loan
Settlement Certificate¡± from CCB, and retrieves the mortgage registration
certificate and the original copy of the insurance policy. Then he or she may present the ¡°Loan Settlement
Certificate¡± to the office where the mortgage was registered and
have the registration cancelled.
9. For detailed information on loan interest and repayment
amounts, please refer to the ¡°Payment methods.¡±
Personal
Housing Mixed Loan
1. Loan Use: The personal housing mixed loan is a loan
that draws upon both bank credit and the provident fund , and that
finances the purchase of urban housing in the mainland by employees
who have full legal capability, and who make payment to the provident
fund on time and in the right amount.
2. Target Clients: Employees who make payment to the
provident fund on time
and in the right amount, and who need financing for the purchase
of urban housing in the mainland.
3. Loan criteria: The applicant must meet the criteria
set by the managing institution of the provident fund and those
set by CCB. The basic
requirements are: A. legal status; B. timely and sufficient payment
to the provident fund ; C. a stable income, creditworthiness, and
the ability to repay both the principal and interest; D. a legal
contract or agreement for the purchase or major maintenance of housing,
and other documents required by CCB; E. 20% of the total purchase
(maintenance) price, reserved for the down payment; F. mortgaged
or pledged property or rights acceptable to CCB, or an organization
or person capable of making repayment as guarantor; G. criteria set by the local managing institution of the provident
fund ; and H. other criteria set by CCB.
4. Loan Limit: not to exceed 80% of the purchase price
or valuation (the lower); the limit to the portion funded by the
provident fund is set by the local managing institution.
5. Loan Term: set by the managing institution of the
provident fund and CCB on a case-by-case basis, subject to the maximum
loan term (currently 30 years) set by the PBC.
6. Loan Interest: set by the PBC for personal housing loans, currently at the
following annual rates:
Bank
personal housing loans
For loans with a term below five years (or a term of
five years): 4.77%;
For loans with a term above five years: 5.04%.
Personal
provident fund housing loans
For loans with a term below five years (or a term of
five years): 3.6%;
For loans with a term above five years: 4.05%.
7. Required documents:
When applying to the managing institution and CCB, the
applicant must provide the following documents:
An Application for a Provident Fund Housing Loan, and
an Application for CCB Personal Housing Loan;
Identification (resident identification, household registration
book, or other identification documents)
A statement from an organization acceptable to the managing
institution and CCB of stable income, or other statements showing
the ability to make repayments;
A legal contract, agreement or statement of approval
for the purchase;
A list of mortgaged property or pledged rights, title
to such property and rights, and a statement from the mortgagor
or pledgor;
A report issued by an appraiser acceptable to the managing
institution of the provident fund on the valuation of the mortgaged
property;
A written commitment from the guarantor and statement
of the guarantor¡¯s financial capability;
Statement of funds raised by the debtor for the purchase;
Other documents and information required by the managing
institution of the provident fund and by CCB.
8. Client Loan Process
Make an application. The loan applicant must file a written application and supporting
documents with the managing institution of the provident fund and with CCB, respectively.
Sign a contract.
After receiving approval for credit from the provident fund,
the applicant may apply to CCB for a mixed loan (combining credit
from the provident fund and bank credit) with the Personal Provident
Fund Housing Loan Agency Notification issued by the managing institution. After being notified of approval for bank
credit, the applicant must sign a loan contract and a guaranty contract
with CCB for the loan from the provident fund and that from the bank respectively. Notarization may be required.
Register the mortgage and purchase insurance. After signing the contracts, the debtor
must register the mortgage, purchase insurance and do other paper
work as required by national and local law and regulations. The mortgage registration fee and insurance premium must be
paid by the debtor, and during the mortgage, the bank keeps the
original copy of the insurance policy.
Open an account.
If the client chooses to make repayment by automatic deposit,
he or she must open a savings bankbook or bank card account, or
a credit card account with CCB specifically for this purpose.
The property seller also needs to open a special deposit
account with CCB.
Disburse the Loan. The debtor must fill out a ¡°Loan to Deposits Conversion Form¡±
for the provident fund housing loan and one for the bank loan. CCB will disburse the loan to the debtor¡¯s
deposit account with CCB, or to the property seller¡¯s account with
CCB as a lump sum or on installments.
Make timely payment. The debtor must repay the provident fund housing loan and the bank loan in a timely fashion
according to the payment plan and method specified in the loan contract.
Currently CCB offers two payment methods, namely automatic
deposit and over-the-counter repayment.
Pay off the loan. A loan may be settled before or at maturity. Loan settlement before maturity refers
to loan settlement before the due date (for loans whose principal
and interest are repaid as a lump sum) or before the due date for
the last installment (for loans paid on installments).
Loan settlement at maturity refers to loan settlement on
the due date (for loans whose principal and interest are repaid
as a lump sum) or on the due date for the last installment (for
loans paid on installments). If repaying all loan balances before
maturity, the debtor must give CCB ten business days¡¯ notice for
loan settlement.
After the loan is settled, the debtor receives a ¡°Loan
Settlement Certificate¡± from CCB and retrieves the original copy
of the mortgage registration certificate and that of the insurance
certificate. Then he or she may present the ¡°Loan Settlement
Certificate¡± to the office where the mortgage was originally registered,
and have the registration cancelled.
9. For detailed information on loan interest or repayment
amounts, please refer to the ¡°Payment Methods.¡±
Personal Commercial Space Purchase Loan
1. Loan Use: The personal commercial space purpose loan
is offered to fund purchase of commercial space in urban areas in
the mainland. Currently
CCB offers commercial space purchase loans that require mortgaged
property and a temporary guarantee.
2. Target clients: Chinese citizens with full legal capability;
residents of Hong Kong, Macau and Taiwan who have permission to
reside in the mainland, and who have full legal capability; and
foreign nationals who have permission to reside in the mainland,
and who have full legal capability.
3. Loan Requirements: A. permanent urban residence or
valid documents authorizing residence; B. a stable income, ability
to repay both the principal and interest, and credit-worthiness;
C. a legal and valid contract or agreement for purchase of commercial
space, and other documents required by CCB; D. 40% of the total
purchase price or valuation, reserved for the down payment; E. ability
to provide security acceptable to CCB; and F. other criteria set
by CCB.
4. Loan Limit: 60% of the purchase price or valuation
of the commercial space (the lower);
5. Loan Term: Ten years maximum, not beyond the expiration
of the right to use the commercial space.
6. Loan
Interest: Not to exceed 10% more than the interest rate set by the
PBC for loans of the same duration;
Loans with a term of less than one year (or a term of
one year): 5.31% per year
Loans with a term between two and three years (including
three years): 5.49% per year
Loans with a term between three and five years (including
five years): 5.58% per year
Loans with a term between five and ten years (including
ten years): 5.76% per year
Required Documents
An application for a commercial space purchase loan;
Photocopies of valid identification (resident identification,
household registration book, or military officer certificate; passport,
family-visiting pass, or home-returning pass for non-residents who
have permission to reside in the mainland);
Acceptable statements of stable income, or other statements
of the capability to make payment;
Legal and valid purchase contract or agreement for the
purchase;
List of mortgaged property or pledged rights, along with
title to such property or rights, and statement from the mortgagor
or pledgor
Report issued by an appraiser recognized by CCB on the
valuation of the mortgaged property;
The guarantor¡¯s written commitment and statement of his
or her financial capability;
Commercial papers that the debtor pledged to CCB, including
CCB certificate of deposits and certificate treasury bonds;
Statement of self-raised funds which the debtor intends
to use for the purchase;
If the applicant¡¯s spouse co-applies, information on
the spouse must be provided on the application, and the marriage
certificate and household registration book must be presented;
Other documents and information required by CCB.
8. Client Loan Process: the same as that for personal
housing loans.
9. For detailed information on loan interest and repayment
amounts, please refer to the ¡°Payments Methods.¡±
Special
Notes
Payment Methods
If the loan term is shorter than one year (or one year),
both principal and interest must be repaid at loan maturity; if
the loan term is longer than one year, it may be repaid as a series
of same-amount payments or on a progressive basis.
Interest Adjustment
Interest rates during the loan term may vary according
to those set by the PBC. If
the loan term is shorter than one year (or one year), the interest
rate remains the same even if the PBC makes adjustments; if the
loan term is longer than one year, the new rate set by the PBC applies
on January 1 of the next year.
If the PBC adjusts the interest rate sometime between
the signing of the contract and loan disbursement, the new interest
rate applies.
Adjustment of the Installment Payment Plan
If the interest rate changes after loan disbursement,
the new rate applies on January 1 of the next year. The amount of the installment payments is adjusted according
to the balance, new interest rate and remaining time to maturity.
If the debtor prepays the loan in an amount higher than
that specified by CCB, the amount of the installment payments may
be adjusted.
First Payment
If the debtor repays the loan by installment, the first
payment due date is the second interest settlement date. However, interest does accrue between
loan disbursement and the first settlement date, which must be paid
on the second interest settlement date.
Prepayment
Prepayment refers to the debtor¡¯s paying the loan in
part or in full before it becomes due.
Prepayment is a breach of the contract, and the debtor may
be charged a fee for this breach.
The debtor may prepay the loan if he or she has never
missed a payment, and has fully repaid all interest or fines; if
the debt owes principal, interest or fines, he or she must repay
them first.
If the loan term is shorter than one year (or is one
year), the principal and interest must be repaid at maturity as
a lump sum. If CCB
agrees, the debtor may repay the full amount of principal and interest
in advance, and pay interest on the actual duration of the loan
at the contract rate. However, the debtor may not repay the principal in part before
maturity.
If the loan term is longer than one year, within the
loan term, the debtor may apply in writing to CCB for prepayment. If CCB agrees, he or she may repay the
loan in part or in full, and no interest accrues on the prepaid
portion after the prepayment date.
If the loan is repaid in full, interest is charged on the
actual duration of the loan at the contract rate.
Late Payment
If the debtor requires a longer time to repay the loan,
he or she must file an Application for Extending the Term of the
Personal Housing Loan and supporting documents 20 business days
earlier.
To qualify, the loan must not be due, and the debtor
must pay the interest, principal and fines due before the loan term
is extended.
The debtor may apply for only one extension;
The original loan term and the extension may not add
up to more than 30 years.
Agency
If the debtor is represented by another person in making
repayment or signing the loan contract, when legal documents reach
the representative, it is assumed that they have reached the debtor.
For detailed information on loan interest and repayment
amounts, please refer to ¡°Payment Methods.¡±
Payment Methods
If the loan term is shorter than one year (or is one
year), the principal and interest must be paid at maturity as a
lump sum.
If the loan term is longer than one year, the loan may
be repaid as equal installments of principal plus interest, or as
equal installments of principal.
The debtor may choose either method, but there may be only
one payment method for each loan, and after the method is specified
in the contract, it may not be changed.
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