Risk Analysis Of Individual Housing Mortgage Loan In The Fluctuation Of Housing Price

In recent years, along with the changes of the inhabitant's income, and the fervency of their buying house keeps going up in China, the financial business of individual housing mortgage loan has been developed rapidly. Because of its reliable guarantees, comparatively high profits and low risks, the individual housing mortgage loan business has become more popular in commercial banks, it has become an important credit business of our commercial bank. But the prospect of individual housing mortgage loan is not optimistic: From the beginning of 2007, price has rise rapidly, the government keeps raising interest rates to slow inflation. They both increase borrower's financial difficulties; on the other hand the quick growth of housing price is far beyond the residential affordability, if housing price falls, the potential risks of individual housing mortgage loan will become reality. The structure of this paper: First, introduce the factors that may lead to the risks of individual housing mortgage loan; second, introduce basic concept of individual housing mortgage loan risks; third, discussing the influence mechanism of housing price fluctuation to individual housing mortgage loan risks; through case analysis—one case of Japan, and one case from America to find the factors that may cause the individual housing mortgage loan risks, then compared to the situation of China. The conclusion is that with the housing price rapid rising, the main risks of individual housing mortgage loan—borrower risk and mortgage risk keep rising, if the housing price falls, they will cause bad debts, and then lead to financial crisis; the last chapter includes prevention to the main risks of individual housing mortgage loan—borrower risk and mortgage risk.