How to Apply for a Mortgage in China as a Foreigner (2026 Rules)

Update Date: January 17, 2026

Disclaimer: This guide is for informational purposes only. Regulations and bank policies are subject to change. Always consult with qualified legal and financial professionals before making any decisions.

Securing a mortgage in China as a foreigner is a well-established process, but the specifics—especially down payment ratios and bank requirements—are subject to change.

This guide is updated for 2026, reflecting the latest policies and practical banking landscape.

2026 Policy Update & Core Eligibility

As of 2026, the overarching national framework for foreigners remains stable, but local city-level variations are more critical than ever.

Post-2023 property market adjustments, many cities have relaxed policies to stimulate demand, which can sometimes benefit foreign buyers.

Key 2026 Updates:

1. Down Payment Ratios: The national guideline often cited (30% for first home, higher for second) is a baseline. In 2026, many first- and second-tier cities have introduced differentiated policies.
   • For a first property, foreigners may qualify for a minimum down payment as low as 20% in certain cities (e.g., parts of Guangdong, Zhejiang) for properties under a specific price or size threshold, aligning closer with local resident rules. Always confirm with your local housing authority and bank.
   • For a second property, ratios typically range from 30% to 50%, heavily dependent on the city and whether your first mortgage is fully paid off.
2. Loan Tenure & Age Limit: Maximum tenure remains 30 years. However, the upper age limit for the loan term (e.g., borrower’s age + loan tenure ≤ 70 years) is now more flexible at some banks, with a few extending to 75 years for qualified applicants with strong financial profiles.
3. Tax & Fee Clarification: The Deed Tax (契税) for a first home (90 sqm or below) is generally 1%. Always engage a local agent to calculate the exact Stamp Duty, Property Registration Fee, and Notary Fees, as these haven’t changed significantly.

Core Eligibility (Unchanged but Essential):

• Valid passport and residence permit (居留许可) with at least one year of validity remaining. Some banks now request a history of residence permits.
• Proof of legal income and tax payments in China for at least one full year (preferred: two years).
• A work contract matching the validity of your residence permit.
• At least 6 months of consecutive personal tax slips and social security payments are non-negotiable for most banks.

Detailed Bank Requirements & Selection (2026 Focus)

Banks are the gatekeepers. Their internal risk controls often go beyond national policy.

Here’s what major banks are focusing on in 2026:

Universal Documentation Package:

1. Passport & Residence Permit: Copies of all pages, including entry stamps.
2. Proof of Residence: Rental contract or local utility bill.
3. Income Verification:
   • Official tax records: The Individual Income Tax Registration (个税证明) from the local tax bureau for the last 12-24 months is the most critical document.
   • Employment contract and employer’s business license.
   • Bank salary statements for the last 6-12 months.
4. Property Documents: Signed pre-sale or purchase contract, developer’s “five certificates” for new homes, or property ownership certificate for resale.
5. Marital Status Proof: A notarized and legally translated marriage certificate or single status affidavit from your home country, authenticated by the Chinese embassy/consulate.

Bank-Specific Nuances (2026 Observations):

• Major Chinese State-Owned Banks (ICBC, CCB, Bank of China):
  • Pros: Most extensive branch networks, often offer competitive rates.
  • Cons: Stringent on documentation, less flexible, slower processing for foreign cases.
  • 2026 Requirement: Increasingly scrutinizing the stability and industry of your employer. Some may require a longer income history (2+ years).
• Joint-Stock & Commercial Banks (CMB, SPDB):
  • Pros: More customer-service oriented, potentially faster processing for expats.
  • Cons: May have slightly higher rates or stricter loan-to-value (LTV) ratios.
  • 2026 Requirement: Often more willing to consider foreign currency income or assets abroad, but require official notarized translations of foreign documentation.
• Foreign Banks in China (HSBC, Standard Chartered):
  • Pros: Experienced with expat finances, may accept global credit history, offer multi-currency products.
  • Cons: Higher minimum loan amounts (e.g., ¥1.5M+), limited service cities, often the highest interest rates.
  • 2026 Requirement: They place a heavy premium on your global relationship with the bank. Being a Premier or Priority client globally can significantly smooth the process.

Critical 2026 Banking Trends:

• Debt-to-Income (DTI) Ratio: Banks now rigorously calculate your DTI. Your total monthly debt (new mortgage + any other loans) should generally not exceed 40-50% of your provable monthly income.
• Credit History: A Chinese credit report is mandatory. Start building one early by using a local credit card. Banks now also inquire about any outstanding debts in your home country.
• Property Valuation: The bank will send an appraiser. The loan is based on the lower of the purchase price or the appraised value.

The Step-by-Step Process

1. Pre-Qualification: Before seriously house hunting, consult with 2-3 different bank managers (preferably at branches familiar with foreign clients) to get a clear picture of your borrowing capacity.
2. Sign Intent & Pay Deposit: Once you find a property, sign the purchase intent agreement and pay the deposit.
3. Formal Bank Application: Submit the full documentation package to your chosen bank. This triggers the property appraisal.
4. Mortgage Approval: Upon approval, you will sign the loan contract at the bank.
5. Finalize Purchase: With the loan commitment letter, you proceed to pay the down payment and sign the formal sales contract at the local housing transaction center.
6. Mortgage Disbursement: The bank will disburse the loan to the seller’s account and register the mortgage against the property.

Final Tips for 2026 Applicants

• Start Early: Begin document collection and bank consultations 3-6 months before you plan to buy.
• Use Professional Help: A reputable real estate agent who has handled foreign clients and a mortgage broker (贷款中介) familiar with expat cases are invaluable. Their fee can save you immense time and hassle.
• Negotiate the Rate: While rates are based on the Loan Prime Rate (LPR), there is often a small margin for negotiation, especially if you are a premium banking client or have a strong financial profile.
• Verify, Then Verify Again: Policies change rapidly. The final authority on your eligibility is the local housing administration and your chosen bank’s credit department. Get all critical information in writing.

The dream of owning a home in China as a foreigner is achievable with meticulous preparation.

By understanding the 2026 landscape and aligning your documentation with strict bank requirements, you can navigate this complex process successfully.

About the Author

Ikky Ma

Administrator

For over a decade, Ikky has served as a cultural navigator and practical guide for foreigners building lives in the world's most complex and dynamic society. What began as a personal journey of adaptation has transformed into a mission to demystify China's systems for the international community. Through firsthand experience navigating the intricacies of Chinese bureaucracy, business culture, and daily life, Ikky has developed a unique expertise that blends legal knowledge, cultural insight, and hard-won practical wisdom.

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