By continuing you agree to eChinacities's Privacy Policy .
Sign up with Google
Sign up with Facebook
Q: Chinese mortgage payments?
So I am in the process of purchasing an apartment with my wife and quite unhappy about the mortgage bit. So I am hoping someone can confirm for me. It appears that when you take out a mortgage, you can only pay the monthly payment amount, not more or less. Therefore if you want to pay down the mortgage faster there is almost no way to do so. Which is ridiculous. Anyone else have experience with this?
I would like to take a 10 year mortgage to be safe, however I intend on paying it much faster and much more each month, but this seems impossible here??
Thanks
9 years 47 weeks ago in Money & Banking - China
Yeah, it is impossible as far as I know. The only way to alter the mortgage is by upping the down payment. But the running time is likely always going to be the same.
My wife and I tried to get a 10 year mortgage, but that bank forced us to take 20 years because my wifes salary (Y9000) isn't enough for a 10 year plan, the mortgage is with China Construction Bank, yep we're same as you, can't pay more or extra expect 1 time a year.
But 20 years = Y1900 a month($300 so easy). Size 92m2 close to Y486,000 - Y112,000 downpayment. Took 7 months for the bank to give us the freakin loan after paying the downpayment.
ou812:
I am a bit confused, have they changed the rules for foreigners buying a home? I was always under the impression that it was impossible or nearly impossible for a foreigner to get a mortgage. Are you doing it in your name or your wife’s name? In general what were the terms, down payment etc.? What is the credit check like? I have no intentions of buying a home, but have recently told people that foreigners can’t finance a home here. I hate to look too stupid :- (
We tried it too. The bank said not a chance.
Interesting to note that with the mortgage you actually are only paying the interest back for the first couple of years (up to five). Nothing from the actual amount you borrowed.
ironman510:
That's the key point they wanna collect the interest long term.
A way to pay a lot the first years, and less in the latter years is to take *two* mortgages, one of 5 years, one of 10 years for instance. You will pay more the first 5 years (paying for two mortgages), less then 5 years that follows. This way, you pay most of your flat when you are somewhat sure of your income source. You can in theory improve on this with more than two mortgages, but it becomes pure theory ^^
Seems like one more reason not to buy property here.
