Ministry of Housing and Urban-rural Development, People's Bank of China and China Banking Regulatory Commission, Circular on Specifying the Criteria for Defining the Second Unit of Residential Premises for Commercial Personal Residential Mortgage Loan Purposes

住房和城乡建设部 、中国人民银行 、中国银行业监督管理委员会关于规范商业性个人住房贷款中第二套住房认定标准的通知

July 14, 2010 | BY

clpstaff &clp articles &

Stringent definition of the second unit of residential premises.

Clp Reference: 4110/10.05.26 Promulgated: 2010-05-26

Issued: May 26 2010


Main contents: According to the Circular, lenders shall implement differential credit policies for the second or more unit of residential premises on borrowers in any of the following circumstances:


(1) the borrower applies for a mortgage loan to purchase residential premises for the first time, and there is already one or more whole unit(s) of residential premises registered under his/her family in the housing registration information system at the place where he/she plans to purchase property;


(2) the borrower has already purchased one or more unit(s) of residential premises using a mortgage loan and is applying for another loan to purchase residential premises; or


(3) the lender, through due diligence investigation such as checking credit records and interview (or a family visit if necessary), is convinced that the borrower's family already owns one or more unit(s) of residential premises (Article 3).


Differential residential credit policies for the second or more unit of residential premises shall apply to non-residents who fail to provide at least one year's proof of local tax payment or social insurance contribution. In regions where the prices of commodity residential premises are exceedingly high or surge, or where property is in short supply, commercial banks may suspend the grant of mortgage loans according to the risks, and the relevant policies and provisions of the local government (Article 4).


Related legislation: State Council, Circular on Determined Suppression of the Exceedingly Rapid Rise of Certain Urban Housing Prices, Apr 17 2010, CLP 2010 No.4 p.45

clp reference:4110/10.05.26promulgated:2010-05-26

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