Although both personal housing mortgage loans and mortgage loans are mortgaged by houses, the two are essentially different. Many borrowers who are involved in loans are not aware of the difference.
- The parties are different. Mortgage loans are between money purchasers, sellers, and banks. They carry out money transactions around property rights, loans, and repayments. In the course of the transaction, the responsibilities of the parties are different. The seller is in the middle of the role of the middleman, the buyer is the mortgagor, and the bank is the mortgage beneficiary. Mortgage generally involves only two parties. The mortgagor and the mortgagee lender mortgage the house to the bank. The simple money-for-work behavior is much simpler than the mortgage.
- Different uses. According to the broad use of subdivision, housing mortgage loans include personal consumption loans and operating loans. Specifically, consumer loans can be used in consumer sectors such as car purchase, tourism, decoration, medical care, and study abroad. Business loans are used for commercial purposes as the name suggests. Mortgage loans are mainly used for home purchases. There is a fundamental difference between the use of the two loans.
- The loan period is different. The term of the mortgage loan is short. According to the loan use, there are restrictions of 3 years, 5 years, 10 years, etc. The mortgage loan period can be up to 30 years.
- Provide different information. For personal housing mortgage loans, the borrower is required to provide real estate licenses and proofs of loan use; while mortgage loans for purchases require the borrower to provide information such as the purchase contract and the payment for the down payment.
- Different aspects of property rights change. The housing ownership (housing title certificate) of the housing mortgage loan is transferred from the seller to the buyer as the purchase transaction is completed, and the ownership of the housing mortgage has not changed.
- The loan cost is different. In terms of loan interest rates, mortgage interest rates can be discounted, or can be raised, or executed at a benchmark interest rate; real estate mortgages rise above the benchmark interest rate.
- The processing period is different. Housing mortgage loans involve buyers and sellers, and must be pre-examined in advance. After the pre-trial is passed, the property right certificate can be processed. It also involves the seller’s cooperation. Therefore, the period is longer, and as long as the housing mortgage loan is ready for materials, the approval is passed. Wait for the loan, the period is shorter.
- Repayment methods are different. Housing mortgage loans generally use equal principal and interest or equal principal, and in addition to the above-mentioned repayment method, the housing mortgage loan can also be repaid in the form of the first payment.