Impact Analysis On Income, Interest Rate On Individual Housing Mortgage Loan

When purchasing house, the main way to finance for Chinese urban residents is individual housing mortgage loan. The amount and term are the two important items of mortgage loan. On the basis of the research on individual housing loans, this paper selects the variables concerning mortgage loan market to examine empirically the relationship between the main relevant variables in order to analyze income and interest rates on personal housing mortgage loan amount and duration.First of all, this paper chooses the data from 1998 to April,2008 in a bank of Hunan branch as the sample of individual housing mortgage loan, and analyses the characteristics of housing mortgage loan and its concerning families through the time series change trends of the influence factors.Secondly, there is close relationship between the total family income and the loan amount. A positive correlation exists between the mortgage loan amount and its own lag term and between the amount and one-period income lagged. Income and its own lag show a positive relation, so does income and the mortgage loan amount lagging one-period income, but two-period lagged mortgage loan amount negatively. These results mean the changing rate of mortgage loan amount is accelerating with the increasing income changing rate.Thirdly, after analysis on the relationship between family income and urban residents' house mortgage loan period, this paper finds that the impact of family income on the loan period is negative, and the regression coefficient is 0.00005. As family income increases, families have a higher down payment, thereby reducing the loan period. Meanwhile, the lower regression coefficient shows the impact of household income on individual housing loans period is little.Finally, after analysis on the relationship between one-year loan interest and urban residents' house mortgage loan, this paper finds that the amount and one-year loan interest show reverse trend, just as the relation between the term and one-year loan interest. It means when the residents chose personal housing mortgage loans as a means of financing, interest rate has a significant impact on house buyers behavior and the higher interest rate, the less total amount and loan term.