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Personal Housing Relay Loan

The Personal Housing Relay Loan is a housing loan where the parent(s) and the child act as co-borrowers and the child (or the child and his/her spouse), parents, or parents and the child are the co-owners of the purchased house.

Targeted Customers
The following two types of customers can apply for personal housing relay loan to ABC:
1. The parent borrower of an advanced age, who could only apply for a short-term loan according to prevailing rules (Borrower's age + Loan term ≤70) and has difficulties in making monthly payments, can designate a child as the co-borrower to prolong the repayment term.
2. The child borrower who is expected to have high income in the future but does not earn much money at present or who has a bright job prospect, such as full-time undergraduate students or above with an age of 18 or above from project 211 universities, may apply for a low-amount loan according to prevailing rules, and can add his/her parent as the co-borrower to increase loan amount.

Qualifications of the Borrower
1. Natural person aged 18 or above but under 60 with full capacity for civil conduct.
2. Chinese registered permanent residents, compatriots from Hong Kong and Macao, overseas Chinese with valid residence permit, and aliens with right of long-term abode.
3. Either party of the co-borrowers has stable job and income and good credit, and their total income can repay the loan principal and interest.
4. Co-borrowers have at most one house with a loan balance.
5. Have signed valid house purchase contract or agreement.
6. Capacity to pay required down payment.
7. Co-borrowers agree to put the purchased house as collateral.
8. For first-hand residential housing loan, developer's phased guarantee is required.
9. Other conditions required by ABC.

Term, Interest Rate, and Limit of Loan
1. The loan term is up to 30 years.
2. The corresponding interest rate is equal to the rate of the same class and period announced by the PBOC. The rate is adjustable upwards or downwards in line with particular circumstances, and not less than 85% of the corresponding benchmark rate.
3. The loan amount is up to 80% of the total price or valuation of the housing purchased, whichever is lower.

The borrower files an application and submits relevant documents → ABC enters into the loan contract with the borrower after the application is approved → The borrower goes through insurance and security formalities → ABC releases the loan → The borrower repays the loan on time

Documents Required for the Application
1. Valid identity certificate.
2. Certificate of repayment ability of the borrower.
3. Contract for the Sale of Commercial House or Letter of Intent for House Purchase signed by the purchaser and seller.
4. Receipt/invoice or other certificate of down payment.
5. Other documents required by ABC.

Repayment Options
You can repay through the straight line repayment or the reducing balance method.
Take the straight line repayment as an example:
Based on the interest rate floor in 2008 and a loan amount of RMB100,000, you will pay:
• RMB1,963.91 per month for a term of 5 years;
• RMB1,143.41 per month for a term of 10 years;
• RMB879.68 per month for a term of 15 years;
• RMB754.76 per month for a term of 20 years;

• RMB642.33 per month for a term of 30 years.

Follow-up Services Available
Mortgage extension. The borrower who has outstanding personal housing loans with ABC may apply for extension of their loans.
Mortgage contraction. The borrower who has an 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 house serving as collateral within the term of the personal housing loan, and the new purchaser applies to ABC for a loan to finance his/her purchase of that house and with the house serving as collateral.

Application Channels
All outlets of ABC.

Note: Please contact your local branch for detailed information about the service.

Customer Service Center : 95599


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