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Personal Second-hand Housing Loan

☆ Introduction
This is a loan for the borrower to buy a house legally traded in the secondary market. The seller has the ownership certificate and right of disposal of the house.

☆ Target Client
The borrower should be a natural person with full civil capacity within 18-65 (inclusive) years of age, good credit history, willing to repay loan.

☆ Features
Besides all special services offered in personal loan for buying new house, personal loan for buying second-hand house has the following features:
1. No limit on the age of the house -- no requirement on the age of the house when applying for this loan, even houses older than 20 years.
2. High quality escrow service on the transaction fund -- ICBC offers high-quality fund escrow service for both seller and buyer to ensure a safe transaction.
3. Fast drawdown -- loan can be released before registration of the mortgage, provided you provide effective guarantee.

☆ Application Condition
Borrowers must fulfill the following conditions besides the basic conditions for personal housing loan:
1. Seller has legal disposal right of the house, the house for sale must have ownership certificate;
2. If the ownership of the house is co-owned, proof of ownership transfer agreed between joint owners.
To apply, prepare and submit the following:
1. Identity document of the borrower and spouse, certificate of marital status;
2. Borrower's proof of permanent residency (permanent resident booklet or other valid proof of residence);
3. Borrower's proof of income and job profession;
4. Proof of the property rights for the second-hand house;
5. Contract for Purchase and Sale of House signed with seller, the account number given by the seller;
6. If appraisal is required on the mortgaged property, the borrower should submit a report issued by a property appraisal agent recognized by lender;
7. Written authorization from joint-owners to agree disposal of the house;
8. Other documentation or details stipulated by ICBC.

☆ Loan Amount
Up to 70% of the market value of the house purchased.

☆ Loan Tenure
Up to 30 years, cannot longer than the remaining years of land use right of the mortgaged house. Sum of the borrower's age and the loan tenure is 70 years maximum. For loan applied by two (inclusive) or more borrowers, the loan tenure can be based on the younger borrower if all conditions are met.

☆ Loan Interest Rate
Loan rate follows the PBOC's rules, floating margin based on the PBOC's benchmark rate for loans of the same tenure same class.

☆ Repayment Option and Services
Following repayment options are available:
1. Straight line repayment. Repay by equal installment on the principal and interest of loan every month during the loan period.
2. Reducing Balance Method. Repay principal of loan equally every month, loan interest decreases as the outstanding principal decreases every month.
3. Balloon repayment (every 2 weeks or 3 weeks). 7 days or integral multiples of 7 days are taken as one repayment cycle under straight line repayment or reducing balance method. The shortest cycle is 7 days and not longer than 21 days (inclusive).
4. "Repay Anytime". During the repayment period agreed in the contract, the repayment amount in straight line repayment will be used as the minimum repayment for each installment. Based on this, you can repay more any time in order to repay the loan in advance.
5. "Move in and Repay" When you buy property-right houses or buy house under construction with mortgage agreement signed with ICBC and interim guarantee provided by real estate developer, you can repay principal of loan later, only repay the loan interest.
In general, repayment date for each installment is the date of the month that matches with the date starting from the month next to the drawdown date of loan. If no date matches, repayment date will be the last date of the month. The repayment date of the last installment is the expiry date of the loan. You can base on your income to choose fixed repayment date for each installment so that you can arrange your expense and income reasonably.

☆ Service Channel and Hours
Submit loan application to ICBC customer manager at the showroom of the real estate agency partnered with ICBC, or go to ICBC personal loan center or personal credit loan business department of local ICBC branch.

☆ Interest rate information
RMB Loan Interest Rate Table

1. For second-hand house bought and sold directly between seller and buyer, can the house buyer apply for ICBC loan for buying second-hand house?
Whether you buy second-hand house through real estate agency or directly deal with seller, ICBC can offer loan for you. For further information, call personal credit loan business department or personal loan center of local ICBC branch.
2. Is the second–hand house I buy has to be assessed?
According to ICBC rules, when you apply for personal loan for buying second-hand house, the house should be appraised by the real estate appraisal agency appointed by ICBC to determine the sum of the loan. No appraisal if the house meets the requirements. For further information, call personal credit loan business department or personal loan center of local ICBC branch.
3. When I apply for the loan, how to ensure I can get the ownership certificate after payment for the house?
ICBC offer escrow services to address the worry between buyer and seller about fund transfer and other issues. Under this service, the down payment and loan amount are monitored during buying/selling of the house. After the buyer pays for the house, the amount is unfreezed. The seller has to transfer the house ownership to the buyer in order to protect the interest of buyer. For further information, call personal credit loan business department or personal loan center of local ICBC branch.

The above is for reference only. Details refer to the rules drawn up by local ICBC branch. To save your time, please call your local ICBC before applying for the service.

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