Mortgage Refinancing

Mortgage Refinancing

1. What is Mortgage Refinancing?

It is to re-evaluate the collateral before lending. If the re-evaluation value is higher than before, you can get a larger loan. However, the loan amount of the collateral can only reach 70% of the reassessed value, that is, the value of the collateral is 1 million, and the maximum loan amount is 700,000.

Mortgage loan refers to the loan obtained by the borrower from the bank with certain collateral as the guarantee. It is a form of bank lending, and the collateral usually includes negotiable securities, national bonds, various stocks, real estate, and bills of lading, stacks, or other documents to prove the ownership of goods. When the loan matures, the borrower must repay it in full, otherwise the bank has the right to dispose of the collateral as a compensation.

2. Materials to be prepared for mortgage loan refinancing

Materials to be submitted by the mortgagor:

1. If the mortgagor is a legal person, the following materials must be submitted:

(1) Business license and annual inspection certificate of the most recent year (copy and photocopy, required).

(2) Organization code certificate and the latest annual inspection certificate.

(3) Tax registration certificate and annual inspection certificate for the most recent year.

(4) The legal representative's identity certificate and signature sample or seal (required).

(5) Articles of Association.

(6) The mortgagor agrees to provide a written document of the mortgage guarantee (required).

(7) The ownership certificate that the mortgagor has the ownership, the right to use or the right to dispose of the mortgaged property according to law.

(8) State-owned land use right certificate and house ownership certificate owned by the mortgagor (required).

2. If the mortgagor is a natural person, the following materials must be submitted:

(1) Valid identity documents (resident identity cards) of the mortgagor and his/her spouse.

(2) The mortgagor's residence certificate (hukou booklet) and marriage certificate.

(3) A written document that the mortgagor and his spouse agree to provide the mortgage guarantee.

(4) State-owned land use right certificate and house ownership certificate owned by the mortgagor.

3. Mortgage Refinancing Considerations

1. If the co-owned property is mortgaged, there should be a written document that the co-owners agree to the mortgage.

2. If the property of a collectively-owned enterprise is mortgaged, there should be a written resolution of the enterprise's workers' congress agreeing to the mortgage.

3. In the case of mortgage of township (village) enterprise workshops and collective land use rights, there should be a written document issued by the township (village) and approved by the villagers' congress to approve the mortgage.

4. If the property of a limited liability company or a joint stock limited company is mortgaged, there should be a written resolution agreeing to the mortgage made by the company's board of directors or the general meeting of shareholders in accordance with the company's articles of association.

5. If the property of the contracted management enterprise is mortgaged, there should be a written document that the contracting party agrees to the mortgage.

6. If the imported equipment or goods that are still under the customs supervision period are used as collateral, the original certificate of origin, sales contract, payment certificate, transportation document, commodity inspection certificate, approval document and approval document of the competent customs shall also be provided for the equipment or goods. Written proof of mortgage.

7. If the leased property is mortgaged, there should also be a written document proving the fact that the lease was prior and that the mortgagor has informed the lessee of setting up the mortgage.

8. If the pre-sale house is mortgaged, there should be a commercial house pre-sale license and an effective pre-purchase house contract.

9. If the construction in progress is mortgaged, there should be a state-owned land use right certificate, a construction land planning license, a construction project planning license, and a construction license; it is necessary to prove that the land use right transfer fee has been paid or the equivalent land use right to be paid. Written materials of the amount of the transfer fee, the project payment that has been invested in the construction in progress, the construction progress and the completion date of the project, the amount of work completed and the amount of work, etc.; the construction project contract and proof of the construction project price estimates, final accounts and arrears written material.

10. If a motor vehicle is mortgaged, a motor vehicle registration certificate should also be obtained.

11. Where machinery and equipment, raw and auxiliary materials, products or commodities and other movable properties are mortgaged, there should also be proof of ownership or right to use the mortgaged property and information on the storage status of the mortgaged property.

Mortgage refinancing, while getting some funding again, still requires careful management.