Did anyone get a mortgage to buy an apartment in Kunming recently? What are the current regulations / requirements for foreigners and immigrants from other provinces?
1) How long do you have to live and work in Kunming to be eligible? (As a foreigner or as a Chinese from another province)
2) What's the minimum down payment?
3) Are interest rates usually fixed or floating?
4) Are there any legal differences in handling new apartments vs. second hand apartments?
5) How much do you need to put aside for fees and other costs when buying?
I looked into it a few years ago, and at that point at least, it wasn't about regulations, but about what the banks were willing to do.
Only a handful of banks, mostly international ones, were willing to give mortgages to foreigners, which I guess is because they need to know how to take international legal action in case of default.
The problem is, of those banks, none of the ones I looked at were willing to do it in Kunming. They were only offering the service in a few key markets with much larger foreigner populations.
As for the requirements for buying a house, they're pretty lax. I believe there's a rule on the books about proving you've been a legal resident in Kunming for more than a year, but I'm not sure if it's being enforced right now.
The key thing is the banks. They need security for the loan. If you have assets and bank outside China, the Chinese banks will be unable to accept them as security.
If you have a company registered in China, you may be able to buy a SOHO, as this is classed as commercial.
If you have a Chinese spouse or family member, they can get a mortgage, if they meet the banks other loan requirements, with little difficulty.
Ultimately you entering into a credit agreement that requires security.
I'd ask at the major banks at their Kunming hqs, not local branches. It's most likely easier now than when xiefei asked since everything has been relaxed. You still need a salary history and probably 20 to 30 percent down payment. If you know the complex you want to buy in, ask the developer for assistance. You might get lucky if they can offer developer financed mortgages, as the reqs might be a lot easier.
One thing I recall hearing somewhere, is that you cannot get mortgage with term longer than the validity of your passport.
I haven't got through the initial red tape to get far enough to confirm that, but for many nationals with 5 year passports this may be an issue even if you otherwise would be able to get the mortgage.
Some banks that we inquired in 2015:
Standard Chartered: Mortgage for foreigners is allowed in many first and second tier cities, for example Chengdu, but not in Kunming.
HSBC: "We regret to inform you that there is no personal banking service in Yunnan province - that is, HSBC Kunming can not offer the Home Mortgage Loan services."
Bank of China: When visiting the main(?) Kunming branch on Beijing Lu, we were informed that foreigners can not get mortgage loan in China. This is obviously not true, so they were really clueless there.
We proceeded to call national support line of Bank of China, who told that from their level there are no nationality restrictions.
Try not to sell your future, especially to a bank.
buying your own property is seen as prudent in most cultures, not doing it if you can afford it is seen as irresponsible in most. getting one you cant afford is where people get into trouble
Not sure mortgages exist in most cultures, but maybe. Anyway, if you buy outright you're only selling your past, and if you rent you're only selling your present (of course somebody's feeding off you), but they haven't bought your future.
stop being a pedant you know what i mean is fiscal cultures and you know your arguement is about as solid as a seive. if you rent you will always have to pay someone rent, or rely on someone else to pay it for you. mortgages end, and you acrue capital along the way, unless you liberate some along the way.