Expats Get Mortgages in China? The Answer Is Yes!

As an expat in China, if you want to buy a house or apartment in Mainland China, the most common way to do is to pay for the whole thing up in advance. But if you need to, it is possible to take out a mortgage from a bank to pay for your new place.

Requirements

In order to get a mortgage, non-Chinese citizens must meet the following requirements:

■  You must have been employed (on a Work Visa) for at least one year in the city where you plan to buy the property.

■  You must have a Chinese sponsor whose role is to guarantee that you are earning enough money to pay back the loan. This would typically be your employer.

Documents needed to submit

If you meet these above, you should be able to apply for a loan from your bank. In order to do so, you will need to submit the following documents there:

■  Passport

You have until the expiration date on your passport to pay back the loan, so you may want to ensure that you have quite some time left on it first.

■  Residence permit (original and photocopy)

■  Proof of your income

This usually takes the form of a spreadsheet printed out by your company's financial officer. This will prove that you have been in employment for a year and show how much tax you've paid.

■  Proof of your financial standing

This would be a financial report, a tax payment record, stock trading record or other proof that you have money, issued by an accounting firm in your own country and verified by the Chinese embassy in your country.

■  Proof of Employment issued by your employer, or the Legal Representative Certificate of your employer

■  The labour contract you signed with your employer

■  A photo of the business license of the company you are working for

■  The marriage certificate or "single certificate" (original and a photocopy)

❶  If you are already in China then the certificate (or an equivalent document verifying your marital status) should be issued by your embassy.

❷  If you are outside China, then you will need to get it from the office in your own country that registers marriages, and then have the document notarized by an officially appointed Chinese notarization office in your home country; your Chinese embassy should be able to help you here.

Note If the document is in English you will also need to submit an official translation issued by theForeign Affairs Office located in the Chinese city in which you are working.

Remember these when applying

■  You must submit the above documents to the bank in person. You should also sign both your English and Chinese names on the housing sales contract, which will be effective from the moment it is notarized.

■  Once the Chinese bank has received your application and verified the documents, you will be granted the mortgage loan at the same interest rates as Chinese citizens. However, the time span of your mortgage loan cannot be longer than the validity of your current passport.

■  Also, banks in China are restricted in granting mortgages which are more than 70 percent of the total purchase price, so you'll still have to pay 30 percent when you make the purchase (however, it is possible to get an 80 percent mortgage and pay 20 percent down payment in some cities these days).

■  The down payment should be transferred from a foreign bank in US dollars, while the monthly loan will be paid in RMB.

Hope you get mortgage

in China successfully!

Good luck! :)

Source: GlobalTimes; HACOS瀚客, WeChat ID: hacosbusiness

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