Beijing’s bank defines second mortgage

The Beijing branch of Bank of Communications (BOCOM) has recently given its own definition of a second mortgage, which will base on the house property of the applicant rather than the applicant’s family. In Beijing, we will examine whether the loan applicant, either an individual borrower or a co-borrower, is trying to buy a second apartment, said Zhang Xin, an official in charge of the credit management with the BOCOM’s Beijing branch.

If any of the co-borrowers already has a house mortgage that hasn’t been paid off, his or her new loan application will be considered as a ’second’ mortgage. It means the person will have to face a higher down-payment and interest rate, Zhang explained. But he stressed that the bank will not check whether the applicant’s spouse has already had an apartment unless the spouse is registered in the lending account as a co-borrower.

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