Just started looking at getting a local mortgage here, what can i expect in terms of:
- size of deposit requirement (e.g. 10%)
- rates
- other requirements

Thanks

If you are not Chinese I understood the deposit should be 40% (although the figure of 30% has also been mentioned).

Home Loan eligibility and down payment percentage rates here in China is based on a few variables, interest rate is government set (currently 5.5% i think). Variables include:

First home loan, second home loan, third or more? Different downpayment rates apply.

Shanghai Residency? Non residents need more down payment

Age of Borrower- term of loan varies based on age up to 30 years. (at 39, I can only get up to a 26 year loan)

Down payment ranges from 30% on up. I paid 30% down on my first property, 50% on my second.

One note, don't be surprised but they require the down payment BEFORE you get to apply for the loan. A little counter intuitive but thats the way it works here.

Hi Wonder Wit,

May I ask what kind of criteria must foreigners possess in order to apply for a mortgage? Or is the downpayment all there is to it? Also, is there a requirement for a valuation on the apartment to be done before we can apply for a mortgage? If so, which body do we apply to for a valuation? Who do we pay the downpayment to? The bank? The owner?

Sorry for asking so much questions.

Jason from Singapore

(The name is actually "yu888" "Wonder wit" is just a ranking on this site.)

So far as I know, in addition to the down payment, I needed my passport with valid visa, residence card (temporary yellow slip or permanent card), proof of income, and a whole lot of patience to go thru the signings and applications etc.

The way loans work here is when you pay the down payment to the seller, whether it be a developer for a new place or the previous owner on a second-hand place, a you sign the sales contract and the loan application all in one sitting. Usually you will either do this at a sales office (new0 or a real estate brokerage office (2nd hand) and all these documents will be prepared for you to review and sign. You will be signing some 7 copies of the sales contract on multiple pages, and then at least 3 copies of the loan application and agreement.

When the loan is funded, the title is then transferred by the government title transfer office (works like a escrow / trust office) and the final moneys go to the seller, the title to the buyer. Hoep that helps!