What will happen if you can’t repay the loan when buying a house?

1. What will happen if you can’t repay the loan when buying a house?

If you cannot repay the loan when buying a house with a loan, there will be corresponding penalties and interest. Late payment fees, personal credit damage, and the possibility of being sued by the bank. Once an overdue payment occurs, the lender will see a record of overdue repayment. If it is a relatively strict bank, even if it is only one day overdue, the bank will enter the overdue information into the central bank's credit reporting system. Once the overdue record is entered into the credit reporting system, it will have a serious impact on the user's future application for credit cards or loans, even if it is If you can get a loan, the loan amount will be reduced a lot.

No matter what the reason is, as long as the loan is overdue, the bank will make a collection call to remind the borrower to repay, and penalty interest will be incurred as long as the repayment is overdue. Different lending banks charge different penalty rates, which basically add 30% to 50% to the original loan interest rate.

The bank will set a default clause in the mortgage contract, requiring the borrower to repay all loan principal and interest at once if the loan is overdue three times in a row or six times in total. If the borrower fails to repay the loan for more than three months, the bank will file a lawsuit with the court in accordance with the loan contract and the guarantee contract. The court will take measures such as property preservation, freeze the deposits in all bank accounts of the lender and guarantor, and seize the mortgaged properties.

2. How many years can a home loan be borrowed?

The maximum loan period of a home loan is 30 years, but this does not mean that all borrowers can obtain a loan of up to 30 years. Many factors will also affect to the final mortgage loan term.

Age impact: Currently, when applying for a home loan, the borrower’s age + loan term must not exceed 70 years old. Therefore, the final loan term of the borrower’s loan to buy a house will also be affected by the borrower’s age. If the home loan The borrower is 55 years old when applying for a mortgage loan, so the maximum loan term is 15 years.

3. Do you need proof of income to buy a house loan?

It is not necessary to have proof of income to buy a house. If you are buying a house with full payment, you do not need proof of income; if you are buying a house with a loan, you generally need to provide proof of income. Banks require users to provide proof of income, mainly to allow users to demonstrate their ability to repay, but when users have other If the supporting documents can effectively prove that you have the ability to repay the principal and interest of the mortgage loan, you do not necessarily need to have proof of income. Therefore, for users who do not have a regular job, other financial proof materials can replace the income proof.