Research On Government Guarantee In Housing Mortgage Loans For The Low And Moderate Incomes

The housing problem of the low and moderate incomes is vital to economic development and social stability.However, more and more people in low-and-moderate incomes had problem on housing purchase. Since the housing reform in1998, house prices has crazy increased, which is already far beyond the purchasing power of the low and middle incomes population today. Otherwise, the banks heightened down payment on home mortgages loans to reduce risk.The Government should take some measures to solve this housing problem. Government Guarantee System is widely used in foreign individual housing-mortgage market, which is regarded as a complementary system. The paper analyses the Mechanism of foreign government guarantee system of housing mortgage and summarizes some experiences from them. The paper surveys the items of contracts, which are used during period of mortgage risk transfer and summarizes the advantages of government guarantee in housing loans. After that, the paper designs a system which contains characteristics of institutions in charge of government housing guarantee, range of business, rates and varieties of guarantee fee, besides this, the paper explains the whole frame of institutions of guarantee and the flow chart while running this system.The paper proposes some suggestions about optimizing outer environment, enhancing supervision, and some other methods used to transfer risks, especially about measures to implement government guarantee system.