Red Mansion Zhihu: How long does it take to repay the mortgage in advance after the mortgage is approved?

Buying a house with a loan is now the most common phenomenon in the real estate market. However, some home buyers with a loan want to repay the loan early due to the improvement of economic conditions in the later period. Then, how long does it take for the mortgage to be repaid in advance after being approved? What should I pay attention to when taking a loan?

How long does it take after the mortgage is approved to be repaid in advance?

For home buyers, taking out a loan to buy a house is a last resort. Therefore, many people have plans to repay the mortgage when they apply for a mortgage. However, different lending institutions allow different times for early repayment of the mortgage. of. For example, China Construction Bank (601939) and Bank of China (601988) among the four major banks generally require borrowers to repay the loan for one year before they can apply for early repayment. The requirements of Industrial and Commercial Bank of China (601398) are that borrowers can apply if they have repaid their loans on time for half a year.

When signing a loan contract, the borrower should first understand clearly what time requirements the loan bank of his choice has for early repayment. In addition, commercial banks such as China Merchants Bank (600036) and Bank of Communications (601328) ) and Bank of East Asia, etc. also require one year of on-time and full repayment before they can apply to the bank to repay the loan before the repayment period expires. Some banks also have no requirements for repaying the loan before the repayment period is up. If the borrower is willing, the borrower can apply for early repayment at any time.

What should you pay attention to when repaying a loan early?

1. Make an appointment in advance

If the home buyer wants to repay the loan in advance after applying for a mortgage, he first needs to make an appointment in advance. During the loan period and one year after the loan is issued, With the consent of the bank, a written application can be made for early repayment of part or all of the loan. Generally, it takes 2-7 working days for banks to process this business. Each bank has different regulations for early repayment of loans, so lenders must understand the lending bank's operating procedures before deciding to repay a loan early.

2. Remember to surrender the policy after repaying the loan early

When a home buyer applies for a mortgage, he or she mortgages his or her house, so after repaying the loan early, he/she needs to apply for a house refund. Well, many people forget this. After the lender settles the entire balance in advance, the bank will issue a settlement certificate. Don't think that you will be fine after paying off the money. Home buyers also need to bring the original loan settlement certificate issued by the bank, the original copy of the original policy and the invoice. Go through the mortgage procedures so that you can get the property certificate that is mortgaged in the bank. You can consult the lending bank for specific instructions.

3. Situations that are not suitable for early repayment

Although early repayment can make home buyers debt-free, not everyone is suitable for early repayment. Before preparing to repay the loan early, you need to understand clearly that friends who have already enjoyed a lower discounted interest rate when applying for the loan are not suitable for early repayment. It is more cost-effective to use the idle funds in your hands to do some financial management.

What procedures are required to repay a loan early?

1. Reservation

All banks require reservations for early loan repayment. There are two ways to make this reservation: make a reservation by phone or make a reservation at the counter. Usually, the next day's repayment can be scheduled one day before the scheduled repayment. It should be noted that the repayment should be an integral multiple of ten thousand, and no fraction will be charged for early repayment.

2. Prepare relevant documents

Be sure to bring the following documents before going to the bank: loan contract, ID card, repayment card. In addition, you should consider the loan changes after repayment. There are two options here: shorten the loan term or reduce the monthly repayment amount. We can make choices based on our actual situation.

3. Sign the early repayment request form

After arriving at the bank, you should first go to the designated counter to collect the early repayment request form. After filling it out, deposit the upcoming early repayment request into the repayment card. The amount of repayment. After successful repayment, your loan principal will be reduced by the amount of early repayment.

4. Precautions for paying off the loan in full early

Be sure to remember to bring the "House Payment Settlement Certificate" issued by the bank to the insurance company to surrender the policy; after paying off the loan , the home buyer must go to the local real estate trading hall to handle the "pawn registration", because before the mortgage registration is revoked, the property rights of the house still belong to the bank. So this process is indispensable. Only when the "pawn registration" is resolved can the house truly belong to us.

Who is suitable for early repayment of loans?

1. For an equal-amount principal and interest loan that does not exceed one-third of the loan period, borrowers of this type of mortgage can repay in advance.

2. The equal principal amount does not exceed one quarter of the entire loan term. This type of mortgage loan holder can make partial early repayment.

3. Those who want to pay off the loan as a mortgage, or want to pay off the loan and sell the house as mortgage, can repay the mortgage in advance.

4. For those who have a mortgage with a high monthly provident fund payment, since the provident fund is a special fund, if it is not used to repay the mortgage, it cannot be withdrawn from the account, so it is better to repay the loan in advance.

5. If you are a mortgage loan holder who is in the early stages of repayment of your mortgage, if you really don’t like “carrying debt” and your mortgage is in the early stages of repayment, you may consider repaying your mortgage early so that you can repay the loan as soon as possible. Secondly, you can also save a lot of mortgage interest.