A Study On Home Mortgage Loan-Learning From US & HK's Experience And Thoughts On China's Improvement

Since 1998,the market of China's home mortgage loans has been growing with leaps and bounds and it still maintains a tendency of constant increase. To stimulate housing consumption needs systematic efforts,of which providing finance for housing plays a vital role. Under the strict supervision of China's central bank and with controlled interest rates,there are apparent similarities in home mortgage products,such as the ratio of down payment,interest rates,repayment of mortgage loans,etc. Thus,the personalized market demand is hardly met. From a practical perspective,it has become more and more important and urgent to improve the existing home mortgage products. On the one hand,the various market-oriented home mortgage products can serve the purpose of helping commercial banks to maximize their profit; on the other hand,they can better meet the need of different consumers and stimulate the development of national economics.Currently,in the field of home mortgage loan,most studies focus on risk prevention and mortgage-baked securitization. This paper offers a unique approach for a study in this field. It chooses"home mortgage loan product"as its topic. Through the method of theoretical and practical analysis,it compares the differences in product designs between America,Hong Kong and China and offers some suggestions on how to improve China's home mortgage product designs. Thus , the problem of over-simplified home mortgage loan product hopefully can be solved so as to satisfy the need of different housing consumers and to help the market of home mortgage loan to develop steadily.The main content of this paper is as follows:Chapter One is the introductory part. It defines the concept of home mortgage loan and briefly introduces the main elements of its product;Chapter Two describes the development of home mortgage loan in America and Hong Kong. It also talks about the characteristics of home mortgage market in America;Chapter Three discusses the product design of home mortgage loan in America and Hong Kong,including the application procedure,business pattern and specific products in their commercial banks. It also describes the main elements of their products and summarizes the characteristics;Chapter Four describes the development of home mortgage loan in China and discusses the design of home mortgage products under current situations in China. It also points out some problems in China's home mortgage product design;Chapter Five discusses the measures to improve the product design of home mortgage in China. It first gives a comparison of the product design between US and China's commercial banks in ratio of down payment,interest rates,fees and repayment. Then it talks about building relevant environment and proposes a set of measures on improving China's home mortgage products.