China Banking and Insurance Regulatory Commission’s Regulations on Mortgage

On the evening of March 4, the China Banking Regulatory Commission and the People's Bank of China issued the "Notice on Strengthening Financial Services for New Citizens" (hereinafter referred to as the "Notice").

103010 includes nine aspects. In response to the financial needs of new citizens in key areas such as entrepreneurship, employment, housing, education, medical care, and elderly care, encourage and guide banks and insurance institutions to actively connect with existing support policies, strengthen product and service innovation according to local conditions, and expand financial supply with high quality , improve the fairness and convenience of financial services. The fourth point is clear: Support and encourage banks and insurance institutions to optimize housing financial services, help increase the supply of affordable housing, support the healthy development of the housing rental market, and meet the housing needs of new citizens.

003010 also made it clear that new urban democracy refers to various groups who come to live in cities permanently for reasons such as entrepreneurship and employment, children's schooling, and seeking refuge, but have not obtained local household registration or have obtained local household registration for less than three years, including but It is not limited to migrant workers and newly employed college graduates. There are currently about 300 million people. Because the distribution of new citizens in various provinces, cities, counties and districts is very uneven, the scope of services for new citizens can be clearly defined based on the actual local conditions and local government policies.

Attachment:

Notice of the People's Bank of China and the China Banking Regulatory Commission on Strengthening Financial Services for New Citizens

Order of the China Banking Regulatory Commission [2022] No. 4

All banking regulatory bureaus and insurance regulatory bureaus, Shanghai headquarters of the People's Bank of China, all branches, business management departments, provincial capital city central branches, sub-provincial central branches, policy banks, large Banks, joint-stock banks, wealth management companies, insurance groups (holding companies), insurance companies, insurance asset management companies, pension management companies, professional insurance intermediaries, banking associations, and insurance associations:

As With the in-depth advancement of my country's industrialization, urbanization and agricultural modernization, hundreds of millions of rural people have moved to cities and towns through employment, schooling and other methods, becoming new citizens. Providing financial services to new citizens is of great significance to smoothing the national economic cycle, building a new development pattern, achieving high-quality development, and promoting new urbanization with people at the core. It is also a necessary measure to promote the structural reform of the financial supply side, satisfy the people's yearning for a better life, and promote the common prosperity of all people. In order to thoroughly implement the decisions and arrangements of the Party Central Committee and the State Council, improve the accessibility and convenience of financial services for new citizens, and effectively enhance their sense of gain, happiness and security, the relevant work on strengthening financial services for new citizens is hereby notified as follows: < /p>

First, adhere to the principle of combining market-oriented operations with government guidance.

Adhere to market-oriented operation. Insurance institutions must adhere to the people-centered development concept, target the financial needs of new citizens in key areas such as entrepreneurship, employment, housing, education, medical care, and elderly care, and follow the principles of marketization and legalization to strengthen product and service innovation and improve financial services. services, expand financial supply with high quality, and enhance the equality and convenience of financial services.

Give full play to the guiding role of the government. The dispatched offices of the China Banking Regulatory Commission and the branches of the People's Bank of China must strengthen communication and coordination with local governments, support and cooperate with local governments to effectively play a guiding role, issue specific policies based on local conditions, refine support measures, solve "bottleneck" constraints, and promote the continuous improvement of banking and insurance institutions The level of financial services for new citizens.

2. Clarify the scope of new citizens and strengthen financial support for key areas and industries.

Define the scope of new citizens. New town democracy refers to various groups, including but not limited to migrant workers, newly-employed college graduates, etc., who come to live in cities permanently because of their entrepreneurship and employment, their children's schooling, and their dependence on the city

Third , expand the supply of financial products and services, and promote entrepreneurship and employment for new citizens.

Strengthen credit support for new citizens to start their own businesses. Support local governments to optimize their policies for undertaking guaranteed loans, include new citizens in the scope of undertaking guaranteed loans, implement policies such as guarantees and interest discounts, simplify the process of undertaking guaranteed loans, and exempt counter-guarantee requirements in accordance with regulations. Commercial banks are encouraged to strengthen their analysis of new citizens' entrepreneurial forms, income characteristics, capital needs and other factors, make full use of information technology, accurately assess the credit status of new citizens, and optimize credit products for new citizens' entrepreneurship. Commercial banks are encouraged to follow market-oriented principles and reduce the financing costs for new citizens to start their own businesses by lowering loan interest rates, reducing service charges, and flexibly setting repayment terms for eligible small and micro enterprises.

Increase financial support for small and micro enterprises that can absorb more new citizen jobs. Promote commercial banks to strengthen the expansion of "first loan accounts" and credit loans for small and micro enterprises, and support small and micro enterprises and individual industrial and commercial households that absorb more new citizens to obtain credit funds. Development banks and policy banks are encouraged to improve their re-lending business models in cooperation with commercial banks, based on functional positioning, and increase support for relevant small and micro enterprises. Commercial banks are encouraged to increase financial support based on the employment situation of new citizens in enterprises and help enterprises give full play to their leading role in employment.

Improve the level of insurance for new citizens to start their own businesses and find employment. Carry out insurance product innovation in industries where new citizens are concentrated, strengthen the connection with work-related injury insurance policies, develop employers' liability insurance, accident insurance and other businesses suitable for the occupational characteristics of new citizens, and improve the level of insurance protection for new citizens to start their own businesses and find employment. Expand insurance coverage by focusing on new groups of citizens with prominent occupational risks, such as construction workers, express delivery riders, and online ride-hailing drivers.

Four. Optimize housing financial services to meet the housing needs of new citizens.

Increase the supply of affordable housing. Encourage banking institutions to increase support for affordable housing such as public rental housing, affordable rental housing, private ownership housing, and renovation projects of old urban communities on the premise of compliance with laws and regulations and controllable risks. . Support commercial banks in providing professional and diversified financial services in accordance with laws and regulations in the development and construction, purchase, inventory revitalization, renovation, operation management, and supporting municipal infrastructure construction of affordable housing. Guide trust companies to leverage their own advantages and support the construction and operation of affordable housing in accordance with laws and regulations. Encourage the development of project quality assurance insurance.

Support the healthy development of the housing rental market. Banks and insurance institutions will be supported in promoting this by participating in the pilot program of affordable rental housing and helping government departments build comprehensive housing rental service platforms.

Actively increase the supply of long-term rental housing and improve the housing rental market supply system. Support commercial banks in providing credit support to professional and large-scale housing rental companies in accordance with laws and regulations, reduce the capital costs of housing rental companies, and help alleviate the housing pressure of new citizens. Encourage insurance institutions to develop lessor liability insurance, tenant liability insurance and other insurance businesses to support the development of the long-term rental market.

Meet the reasonable credit needs of new citizens for purchasing houses. Support commercial banks to conscientiously implement relevant national policies, closely focus on the goals of "stabilizing land prices, stabilizing housing prices, and stabilizing expectations", implement differentiated housing credit policies according to cities, and reasonably determine the standards for first-home mortgage loans for new citizens who meet the conditions for home purchase. Improve borrowing and repayment convenience. Commercial banks are encouraged to make full use of information technology to scientifically and prudently assess the credit levels of new citizens from multiple dimensions, and reasonably meet their home purchase credit needs for new citizens who meet the requirements of the home purchase policy, have the ability to purchase homes, and have relatively stable incomes.

Optimize financial services for new citizens’ housing. In response to the differentiated financial needs of new citizens in the transitional stage of entering the city and settling in the city, we provide them with reasonable consumer credit products for purchasing furniture, home appliances, etc. Promote home property insurance to enhance the ability of new citizen families to withstand the risk of property loss.

5. Implement relevant policy requirements and support new citizens’ training and children’s education

Support new citizens to better obtain vocational skills training. Commercial banks are encouraged to strengthen cooperation with the government, optimize products and services in accordance with policy requirements such as the "14th Five-Year Plan" Vocational Skills Training Plan, explore ways such as local government subsidies for loan interest, and provide vocational and technical education and skills for new citizens in accordance with laws and regulations. Provide financial support such as training to help new citizens improve their technical skills and enhance their entrepreneurial and employability capabilities.

Optimize financial services for the education of new citizens’ children. Relevant banking institutions are encouraged to implement the national student loan policy and serve the children of new citizens whose families have financial difficulties in studying. Encourage insurance institutions to actively develop insurance businesses such as school insurance, children's education subsidy insurance, internship liability insurance, and educational institution liability insurance.

Support the development of daycare and preschool education. Encourage banking and insurance institutions to follow the "Decision of the Central Committee of the Communist Party of China and the State Council on Optimizing Fertility Policies to Promote Long-term and Balanced Development of the Population", "Guiding Opinions of the General Office of the State Council on Promoting the Development of Care Services for Infants and Children Under 3 Years Old", "General Office of the State Council on Promoting Elderly Care Services" "Opinions on the Healthy Development of Educational Services" and other policy requirements, provide financial services to childcare institutions in areas where new citizens gather. Develop inclusive preschool education liability insurance and accident insurance businesses to solve the worries of new citizens’ families regarding the education and raising of preschool children.

6. Strengthen cooperation with government departments to improve health insurance service levels

Give full play to the supplementary role of commercial health insurance. Encourage insurance institutions to strengthen cooperation with the medical insurance department, promote the effective connection between commercial health insurance and basic medical insurance, develop inclusive commercial health insurance products that are not linked to household registration, meet the multi-level and diversified health protection needs of new citizens, and prevent illness-related illnesses. Cause poverty and return to poverty.

Increase the coverage of commercial health insurance. Support insurance institutions to strengthen insurance product innovation in response to the situation where new citizens have a large number of short-term and temporary workers, and provide new citizens with more flexible health insurance products. Encourage insurance institutions to proactively connect with new citizens’ companies and provide flexible, affordable, and convenient group health insurance products. Strengthen the brand building of commercial health insurance and improve the acceptance of commercial health insurance by new citizens.

Facilitate direct settlement for medical treatment in other places. Give full play to our channel and technological advantages to help the medical insurance department further promote direct settlement of medical treatment in other places, and further facilitate new citizens to seek medical treatment nearby.

7. Enrich pension financial service products and increase pension security for new citizens

Reasonably meet the financing needs of pension service institutions. Strengthen support for the elderly care industry, help cultivate a group of elderly care service institutions with sustainable development, standardized operations, and good market reputation, promote the increase in the supply of elderly care services, and support new citizens to care for themselves in place where they usually live.

Improve financial services for new citizens’ pension security. Cooperate with local governments to promote long-term care insurance for new citizens, support qualified regions to explore off-site insurance and rapid claim settlement, and meet the differentiated pension needs of new citizens.

8. Optimize basic financial services and enhance new citizens’ sense of gain

Improve the convenience and availability of basic financial services. Commercial banks are encouraged to optimize financial services such as account opening and salary payment based on the high mobility of new citizens. Support commercial banks to reasonably reduce or exempt new citizens’ personal debit card fees, annual fees, small account management fees, SMS service fees and other fees. Promote banking and insurance institutions to continuously improve service facilities and optimize product design to better meet the financial needs of new citizens. Provide new citizens with more diverse and more convenient credit inquiry services.

Help protect the legitimate rights and interests of new citizens. Commercial banks are encouraged to give full play to their advantages in information technology, data and channels, and cooperate with government departments to improve the monitoring and early warning platform for migrant workers' wage payment. Support banks and insurance institutions in exploring and developing financial products such as bank guarantees for migrant workers’ wages to ensure that migrant workers’ wages are paid in full and in a timely manner. Implement fund supervision requirements for private educational institutions, elderly care institutions, housing rental companies and other institutions in accordance with laws and regulations to help safeguard the legitimate rights and interests of new citizens. Smooth channels for consumer complaints, improve dispute resolution mechanisms, and safeguard the rights and interests of new financial consumers.

9. Strengthen organizational guarantees and promote the implementation of work measures

Adapt measures to local conditions and do a good job in organizational promotion. The dispatched offices of the China Banking and Insurance Regulatory Commission and the branches of the People's Bank of China should combine the overall work requirements, strengthen docking with government departments, organize and guide banking and insurance institutions to optimize products and services based on local conditions, and improve the level of financial services for new citizens. Banking and insurance institutions must refine work plans, consolidate work responsibilities, improve incentive and restraint mechanisms, increase the enthusiasm of branches and staff in serving new citizens, and promote the implementation of relevant work as soon as possible.

Strengthen coordination and leverage policy synergy. Promote the effective connection between financial policies and new citizen support policies such as finance, employment, housing, and social security, and guide banking and insurance institutions to strengthen cooperation with government departments in the deposit and issuance of social security for new citizens, the deposit and use of housing provident funds, and the payment of wages to migrant workers. Establish cooperation mechanisms in areas such as medical insurance deposits and settlements, and make good use of inclusive small and micro loan support tools and inclusive re-lending, re-discount and other policies to effectively meet the financial needs of new citizens.

Improve the risk sharing mechanism and increase the enthusiasm of financial institutions. Support qualified local governments to play the guiding role of fiscal funds, and establish risk compensation funds based on actual research to use for new citizens' entrepreneurship and corporate financing risk compensation to absorb new citizens' employment. Strengthen bank-insurance cooperation and give full play to the supporting role of guarantee insurance and other insurance products in providing financing and credit enhancement for small and micro enterprises that attract new citizens' employment. Research and innovate guarantee methods, encourage government financing guarantee companies to provide guarantee support, and increase credit enhancement efforts.

Improve supporting facilities and promote information sharing.

Strengthen cooperation with government departments, promote the establishment of an integrated mechanism for the sharing of public credit information and financial information, accelerate the openness and sharing of government information related to new citizens, reduce information asymmetry, and create a good financing environment. Banking and insurance institutions are encouraged to actively explore the use of big data technology on the basis of effectively protecting the rights and interests of personal information in accordance with the law, comprehensively use new citizens' social security, tax, housing provident fund and other data to optimize the internal credit evaluation system of new citizens and improve the efficiency of financial services.

China Banking and Insurance Regulatory Commission

People's Bank of China

Related questions and answers on March 4, 2023: Related questions and answers: How long does it take to normally approve a mortgage loan, and what are the conditions?

First, understand the approval conditions required for a mortgage:

(1) Have a legal identity (resident ID card, household registration book, military officer ID card, and have the right of abode in mainland China) , foreign natural persons (residence documents such as passports, family visit permits, return certificates, or other identity documents);

(2) Have stable economic income and good credit (this is very important). There are some people in our hometown. If someone uses his or her ID card to take out a loan, and then fails to repay it overdue, he will not be able to get a loan to buy a house. If he has the ability to repay the principal and interest of the loan, he must have proof of income stamped with the official seal of the company and a special financial seal, as well as bank statements. , so please do your homework one year before you plan to buy a house;

(3) Be 18 years or older, have full capacity for civil conduct, and generally cannot exceed 65 years old.

(4) If married, provide materials from both spouses; if unmarried, provide certificate of unmarried status; if divorced, provide divorce certificate.

2. Go to the bank to fill in the "Personal Housing Loan Application Form". Developers usually sign cooperation agreements with one or several banks, so it will be more convenient to apply for a mortgage loan agreement with a bank that has an agreement with the developer. Bring the originals and copies of the down payment receipt, "Commercial Housing Sales Contract", ID card, local household registration book (for non-local household registration, proof of temporary residence for more than one year), income certificate, etc. to the bank to fill out the "Personal Housing Loan Application Form".

3. The bank's credit staff will review and approve the materials submitted by the applicant step by step. If they are deemed to meet the bank's loan conditions, they will notify the applicant to sign a "Personal Housing Mortgage Loan Contract". The contract period will not expire. More than 30 years.

4. Go to the Housing Authority to apply for the "Certificate of Other Rights to the House" to prove that there is a bank's mortgage on the property. Go to the notary department to apply for notarization of property rights mortgage. Go to an insurance company to apply for home insurance. Banks will usually handle the above procedures for you.

5. Open an account. Customers who choose the entrusted deduction method for repayment need to sign an entrusted deduction agreement with the bank and open a special savings passbook account or savings card or credit card account for repayment at the business outlet designated by the loan bank. At the same time, the house seller must open a house sales settlement account or a special deposit account with the lending bank.

6. Loan disbursement. For loans approved by the lending bank, after completing the relevant procedures, the lending bank will directly transfer the loan to the borrower's deposit account opened with the lending bank in accordance with the loan contract, or transfer the loan to the house seller in one go or in installments. In the deposit account opened by the lending bank.

7. The borrower must repay the principal and interest of the loan according to the repayment plan and repayment method stipulated in the loan contract, otherwise the bank may repossess the house in accordance with the law.

Second, how long does it take for bank approval?

First, for second-hand houses, when the bank loan limit is sufficient and your information is complete, from application to approval, The fastest is about a week, and if it's slower, it can usually be approved in about half a month. For second-hand houses, if the bank quota is insufficient or the quota is under control, banks will generally lend money at the beginning of the month, which means that the slowest time is about a month.

2. For first-hand new houses, since the developer has signed a loan contract with the bank, the loan approval is very fast. My brother-in-law bought a house in a prefecture-level city, from paying the down payment and writing documents to loaning Just about a week. He said that the fastest approval time for his batch was two days, and the loan was issued in three days. Under normal circumstances, I learned that bank approval takes three to five days, and the loan time must be based on the developer's requirements before the bank will issue a home loan. It's fast. It can take three days if possible, and it can take a month if it's slow.

So in general, the bank loan approval time depends on whether your information is complete, the bank's quota situation, the developer's requirements and other factors. As an applicant, you need to communicate with the bank manager frequently. Or contact real estate sales to know the progress in time, and just wait patiently in the end.

The above is for reference only. Mortgage policies vary from place to place, but the normal procedures are similar anyway.