Parents do not finish the mortgage, the children to return!Guangzhou reappears “relay loan” industry: or suspected violations

2022-07-17 0 By

Red Star Capital Bureau on April 7 news, Guangzhou once again called “relay loan” mortgage products – after applying for loans, if the parents do not finish, the children can also continue to pay.A number of industry insiders in an interview with the Red Star Capital Bureau said that banks in Guangzhou had launched such products before.However, “relay loan” or suspected violations, suggested cautious application, “if the attention of the regulatory layer, may be stopped.”According to IC Photo, the loan is available for up to 30 years and the product is rarely promoted. “If you have already bought a house in Guangzhou, you are not eligible to buy another house according to the current policy.However, if your parents have not bought a house in Guangzhou, you can buy with your parents’ quota and apply for ‘relay loan’ to enjoy the policy of the first house.”On April 7, a hengfeng Bank Guangzhou branch customer service manager in charge of mortgage business told Red Star Capital Bureau.According to it, parents and children can apply as long as their income is more than 1.5 times the monthly mortgage payment and their parents are no older than 70.”For example, if you apply for a loan with a monthly payment of 10,000 yuan, you will meet the requirement as long as you and your parents have a total monthly income of more than 15,000 yuan.”The customer service manager also revealed that the maximum term of the “relay loan” can be applied for is 30 years, with 30 percent down payment for the first home.As for the application procedures, the customer service manager sent the application materials to the Red Star Capital Bureau, including: the parents and children need to submit id cards and copies of the household registration book, income proof, the salary of the last six months, proof of the source of the down payment and other materials.As for the exact timing of the launch, the company did not respond positively.The customer service manager said, “Once the application is successful, we don’t care whether your parents or you pay the mortgage, as long as we can pay the mortgage every month.”However, the customer service manager revealed that the bank rarely promotes the product, so many people don’t know about it.As for the reason, he said, “Customers think it’s good, but banks don’t.”It added that many banks did not launch the product due to approval and other factors.Be disguised to relax the limit for purchasing, or with suspected violations of the mortgage to have in-depth study of a bureau of the personage inside course of study in a red star capital, is the “borrowed” relay parent-child relay, father debt also, two generations take loans together, make the original repayment period is longer, can not only reduce the probability of default, also can alleviate the pressure of the buyers.For the aforementioned customer service manager revealed the “product rarely promoted” reason, the industry insider said that the product or suspected violations.The analysis of the industry pointed out that, compared to the existing mortgage policy, “relay loan” suspected of breaking through two lines.”First of all, from the first set of down payment, Guangzhou’s policy is 50%, the bank’s ‘relay loan’ is 30%;Second, in terms of age and term of loan, people who are over 70 cannot take out loans, and the loan term is usually about 10 years. Relay loans are purchased by parents, but most direct loans are for 30 years depending on the age of their children.In this person’s view, this is obviously to encourage young people through the elderly quota to buy a house, thereby relaxing the purchase limit.”If regulators pay attention to this, relay loans are likely to be stopped.”Yan Yuejin, a researcher at e-House Research Institute think tank Center, pointed out that “relay loans” appeared as early as 2017 when the real estate regulation policy was not completely tightened.It is said that “relay loan” itself is a less common product, before a small number of banks in Guangzhou have launched, “with the tightening of regulatory policies, all the ‘relay loan’ have withdrawn from the historical stage.In the current control policy tends to relax the situation, the current launch of ‘relay loan’ banks are not many.”Li Yujia, chief researcher at the Guangdong Housing Policy Research Center, told The Redstar Capital Bureau that “relay loans” can improve home buyers’ ability in the short term.For the reason that some banks launched this product, Li Yujia said, under the influence of the current overall housing price is relatively high, the market expectation is not good and the epidemic situation continues and other factors, developers jointly launched this product to stimulate the purchase demand.”There is a lot of risk in applying for relay loans if your future income is not sustainable or will not grow, so it is best to be cautious.”In Li Yujia’s view, the launch of the product is a short-sighted behavior of banks and developers.In addition, the public information shows that in November 2021, including Bank of China (601988.SH) Co., LTD. Chengdu Jinniu Sub-branch, Bank of China Co., LTD. Chengdu Shudu Sub-branch (the former Bank of China Co., LTD. Chengdu Shudu Sub-branch), Bank of China Co., LTD. Sichuan Branch Business Department,The three branches were fined a total of 1.75 million yuan by the CBRC for illegally issuing “age relay” housing mortgage loans to unqualified individuals.Yan Yuejin explained that “age relay” housing mortgage loan is essentially “relay loan”, “but the caliber may not be quite the same.”Red star news reporter Li Weiming Li Chen responsible for editing Ren Zhijiang (download red star news, the news prize!)