How to avoid gift tax by refinancing a mortgage?Explains cases where gift tax is incurred and how to avoid it
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Be careful when exchanging mortgage payments between a couple or a parent and child.
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Housing loan(XNUMX loan,housing loan,mortgage) Means that "the person and their family" or "the family of the person" resides住宅And accompanyingland(Single-Family Home,Apartment)Buy,New construction,Extension,Renovation,Refinancing an existing mortgageTo doFinancial institutionReceive fromLoan(Loan).
JapanThen gradually rose物 価andLand priceDepending on the location, total floor area, new construction,Middle AgesHowever, the average annual income of the people is several million to XNUMX million yen.Those that greatly exceed are normal.
A mortgage is a product that provides loans for the purchase funds,interest rateIs kept low and many repayment periods are long, up to 35 years. By extending the repayment period, the monthly repayment amount can be reduced andOffice workerIn the householdRetirement ageBy continuing to make repayments within the range of monthly income until retirement, it became easy to acquire an expensive home.
As a mortgage company,Ordinary bank-Trust bank-Credit union-JA Bank-Labor unionThe private sector is the mainstream (Japan Post BankCurrently not handled). In addition, domestic capitalLife insurance company(Nippon Life InsuranceEtc.),Jacksな どCredit salesSpecialized in real estate mortgage loans, such as companiesNon-bankExtantHousing finance companyIsCooperative mortgageIt is also handled by companies other than banks (these companies are collectively referred to as "handlers").
In 2001, the mortgage loan that had preceded in the United StatesMBSでSecuritizationAnd sell it to institutional investors to raise financingMortgage loan companyAs,Softbank finance(At that time), "Good mortgage (current:SBI Mortgage)” was founded. In 2003Housing Finance AgencyWill provide smooth funding with a similar scheme.Securitization support business (Flat 35)Has appeared, and several specialized mortgage loan companies have been established to handle it.Sekisui HouseSystem etc.). In addition, even at existing deposit handling financial institutions,Housing Finance CorporationIn many cases, it handles the mortgage in parallel with its own as a successor to the loan.
In addition, about loan of home purchase fund using "flat 35" "flat 50",Flat 35See also.
Mortgage lending conditions include a stable income (Salary,Business incomeEtc.) and specified by the bank etc.Credit guaranteeThe company tells the lenderJoint guaranteeIt is general that the minimum condition is to accept and conclude a debt guarantee consignment contract (however,Employee WelfareLending inHousing Finance Agency,Online bankIn some cases, a loan guarantee company is not used for such loans. Mortgages that are directly financed by a bank without a guarantor are said to be proper loans.
Depending on the handling company, loan amount, age, annual income, number of years of service,down payment-Group credit life insuranceIndividual restrictions and conditions such as subscription are established. Application guidelines are published in pamphlets, product manuals, etc., but the detailed examination criteria are undisclosed as they are internal regulations like other loans and credit cards. Of purchased real estate eligible for mortgageregistrationIs a financial institution that handlesHousing Finance AgencyOr the guarantee company is the firstMortgage registrationWill be done.
If you apply at a bank, etc., the credit guarantee company or the handling financial institution will mainly examine the credit of the debtor and the collateral evaluation amount of the house you plan to purchase, etc.Credit informationupperCredit historyIf there is a problem with the balance of other companies' debt or overdue, etc., there may be cases in which it is withheld (rejected). In the case of a loan accompanied by a guarantee consignment contract, if the guarantor's examination criteria are met, the guarantor's examination result will remain the same even if the bank's tentative examination is approved in order to reply to the bank that it will accept the joint guarantee. have priority.
If you want to get a loan to buy a house, after passing the examination, generally when you deliver the propertyMoney consumption loan agreementExchange the written statement with a financial institution, receive the loan by transfer to a repayment account, and immediately transfer the fund to the seller's bank account specified in advance.
Floating interest rate type in which interest rates fluctuate (interlock) for a period specified by the handling company until payment is completed, fixed interest rate type in which the interest rate at the time of lending is fixed until maturity, fixed period from lending (2 years -For 10 years, etc.) Only the initial fixed interest rate, and after the lapse of the period, there are fixed period option type and fixed interest rate special type that are changed to fixed or floating interest rate at that point.
- The floating interest rate type isShort-term prime rateThe mainstream is linked toLong-term prime rateIs the mainstream),Zero interest rateTherefore, if the interest rate is low, the interest burden can be significantly reduced compared to the fixed interest rate type, but since the loan interest rate is reviewed in a short period,inflation,Monetary policyTherefore, if interest rates rise in the future, there is a risk that interest burden will double (interest rate rise risk). In addition, since the future interest rate has not been fixed, the final interest amount will not be known until the payment is completed.
- In the fixed-rate type, the lender bears the risk of rising interest rates that may occur in the floating-rate type, so even if interest rates rise in the future, the interest amount on the borrower side does not fluctuate, and the interest burden until the payment is completed is fixed. There is an advantage. However, the interest rate is a floating rate plus a few percent according to the fixed period, and if the interest rate initially remained at the loan level for a long time or if the interest rate declined, the interest rate added to the floating rate was added. As a result, you will bear a large amount of interest, and you will suffer a loss.
- The fixed period option type has a fixed interest rate for a certain period at the beginning of lending, so it is in a phase of rising interest rates and if interest rates decline in the future (for example, in March 2006,Zero interest rateLifting ban-about 2009 years until the return to zero interest rate in 3) can be covered, but if interest rates decline, the same disadvantages as the fixed interest rate type will occur.
Depending on the handling company, it is possible to combine (mix) fixed and floating types and repayment periods by dividing the contract based on other interest rate rules and the breakdown of total loan amount (eg 2000 million yen and 1000 million yen). Loan products also exist.
Generally used due to long redemption periodEquity and interest repaymentIn case of, the interest burden in the early stage of repayment is large. Therefore, if you have enough moneyprincipalTo reduce (Prepayment) Can reduce the interest burden.
Guarantee company/guarantee fee
In the case of mortgages, the guarantee of a "prescribed guarantee company" is often required. In the unlikely event that you cannot repay, the guarantee company will repay the remaining debt to the financial institution on behalf of the person who borrowed it.For financial institutions, rather than having an individual repay it. It will be possible to collect the debt quickly. In addition, a guarantee fee is required separately in order for the guarantee company to guarantee the guarantee. Guarantee fees can be paid in advance in a lump sum or redeemed by adding the guarantee fee rate to the interest rate. Please note that depending on the financial institution, the guarantee fee (or rate) may vary depending on the person depending on the examination.
The borrowable amount (loan amount) of a mortgage is determined by the examination of each financial institution.When considering buying a home, it is necessary to estimate how much property can be purchased, so the index of annual income ratio is often used for estimation.The annual income ratio is an index that asks, "How many times your annual income can be borrowed?", And is calculated by dividing the amount that can be borrowed by the annual income.
Generally, the annual income ratio is about 5 times, which is easy for office workers to buy.According to the Japan Housing Finance Agency's Flat 35 user 2019 survey data, the national average annual income ratio of "custom-built housing with land" is 7.3 times.Newly built condominiums are 7.1 times, sales houses are 6.7 times, custom-built houses are 6.5 times, pre-owned condominiums are 5.8 times, and pre-owned houses are 5.5 times, all exceeding 5 times..
In addition, the “repayment ratio”, which represents the ratio of total annual repayment (principal + interest) to annual income, is also used. The maximum repayment ratio is 25% to 35%.
When repayment is delayed
UnemploymentIf the loan repayment is delayed for a long time due toSelf-bankruptcyIf you apply for, the credit guarantee company that is the joint guarantor of the borrower will respond to the request of the bank, etc.SubrogationIn many cases, mortgages are exercised, rights are transferred, and eviction is requested. However, since the sale has not been done at this point, if the amount sold by the guarantee company to the real estate agent is less than the remaining debt,Non-recourse loanUnless otherwise, the difference must be repaid to the guarantee company.In such a case, the borrower suffers a great disadvantage, so if repayment becomes difficult, consult with the lender as soon as possible.Voluntary saleEtc. should be examined.In addition, it should be notedGroup credit life insuranceIn case of accidental death or severe disability, if there is an incidental claim, the insurance money paid from it will be fully paid and the survivors will not be burdened.
In recent years 2008World financial crisisSince the outbreakUnemployment rateAs a result of rising prices, some people were forced to part with their homes, but in 2009Yukio Hatoyama CabinetWas appointed inKamei ShizukaThe minister in charge of financial and postal reform reforms took effect in December of the same year.Small Business Finance Facilitation Act(So-calledmoratoriumLaw)”, the lender's monthly repayment reduction due to the extension of the repayment period of the individual mortgage loan is included in the lender's request.
Double loan problemAs a countermeasure,2011 OfGreat East Japan EarthquakeThe "Guidelines for Private Reorganization of Individual Debtors" (Disaster Loan Reduction/Exemption System) for disaster victims whose repayment has become difficult due to the impact of.. In addition, as a permanent measure version, it occurred after September 2015, 9Disaster Relief ActThe “Guidelines for Debt Consolidation of Victims of Natural Disasters” targeted for natural disasters that have been applied by According to the guideline, it becomes possible for individuals who have difficulty in repayment of debts due to the impact of the natural disaster, to obtain a reduction or exemption of debts after leaving certain assets at hand.Credit information agencyDebt consolidation information (so-called "blacklist") will not be registered in.
A mortgage is basically a loan that is disbursed when the property is completed and is delivered.住宅(Custom-made house, so-called fine goods) and the baseland-Land with construction conditionsIf you want to buy, you are the owner/sellerHouse maker,Real estateIt is necessary to pay a part of the order/purchase price to the company in advance by the name of “land purchase cost”, “starting fee”, “intermediate fee”, etc. before completion. Also,Flat 35When using, the loan execution date is set (about 10 days a month), and if the delivery date is before the loan execution date, the seller must pay the purchase price and various expenses. Regarding the purchase price required before such a mortgage loan, banks and affiliated non-banks will pay the necessary costs as "linkage funds" for a short period of time, provided that the mortgage loan (final examination) has been finalized. It is a loan. The repayment of the bridge loan will be made from the mortgage loan and the flat 35 loan and will be repayment in a lump sum. In addition, stamp tax and interest will be charged at the time of contract when using the bridge loan.
This is a form of a mortgage loan that is being repaid by a person who is repaying the mortgage to reimburse the mortgage under favorable conditions in order to reduce interest and extend the repayment period. In many cases, the loanable amount is examined based on the collateral value at the time of application, and depending on the examination result, the full amount may not be refinanced.
If the current residence where the mortgage is being repaid is sold by relocation and the amount of the sale is less than the mortgage loan outstanding (insufficient), the sum of the deficiency and the purchase funds for the new home (current residence Often, it is within the range up to the initial loan amount) By forming a mortgage, it is possible to unify the mortgage and extend the repayment period.
These are "expenses" other than the purchase price that occur when you buy a house and borrow a loan.Real estate acquisition taxProducts that finance loans such as taxes, guarantee fees paid to guarantee companies, registration costs (mortgage setting costs), reserves for repairs when purchasing new condominiums, and brokerage fees when purchasing used homes. Basically, mortgages do not cover various expenses, and either self-financed funds or use various expense loans. In addition, there are financial institutions that do not have various expense loans. Depending on the financial institution, there are collateralized and unsecured types that are set as mortgages, and interest rates are set higher than mortgages. Generally, it is a form of contract with a mortgage, and it is not possible to apply alone.
It can be included in the purchase priceRenovationCosts are generally covered by mortgages, but if a house is remodeled after it is purchased, it will be in the category of a remodeling loan.
Second house loan
Long-termSingle assignmentHousing in remote areas such asVillaAs a mortgage for real estate purchase. Loan interest rates are often set slightly higher. In addition, for leisure useResort mansionIs excluded fromResort membershipSome financial institutions are also included in the category of resort loans and free loans for the purchase of funds. By the way,Flat 35It can also be used when purchasing a second house.
ApartmentAnd for investmentApartmentSuch as a collective housing or a room (divisional ownership)everyoneFor commercial useReal estate loanThe main source of repayment is rent income from tenants, and after repayment, it will lead to the income of the landlord (→Rental housing).Loan conditions (maximum loan amount, interest rate, loan amount, repayment period, group credit life insurance, etc.) vary depending on the target property and sales form, and it is said that the examination is relatively stricter than general actual demand loans.In many cases, the loan system is affiliated with a sales company, and some financial institutions also offer loan products limited to compartmentalized studio condominiums.If it is discovered that a loan has been obtained as a mortgage for the purpose of investing in real estate, the profit due to the term may be lost and a lump sum repayment may be required..
Home equity loan
A home equity loan is a loan that lends within the range of the residual value (home equity) obtained by subtracting the amount equivalent to the remaining bonds of the mortgage borrowed from the current valuation of the home. The difference from the secured free loan described below is that the loan can be received up to the residual value that the lender has approved. Mortgages are set below the mortgage (second) and below.
Real estate mortgage loan
Real estate secured loan is a generic term for loans secured by real estate. Mortgages are also a type of real estate mortgage. There is a possibility that any real estate can be used as collateral as long as it is real estate, and the use of funds is often free and unlimited..
- Secured Certificate Lending
- Education loanOr (things whose usage is decided such as high medical expenses)Renovationloan,Summary loanIn some of the banks that handleCredit guaranteeIn addition to the unsecured type, it may be possible to incorporate residential real estate into collateral and obtain a loan at a lower interest rate than the unsecured type. Education loanFaculty of medicineGoing to school or going abroadStudy abroadFor example, a remodeling loan may be used when a large amount of renovation requires a significantly high cost, and when unsecured it is difficult to lend.
- If you are repayment of a mortgage, you set the mortgage to the second place or lower, but often there is a judicial scrivener's fee for setting the mortgage.
- Secured card loan
- Almost synonymous with home equity loans, we set a high loan amount (100-1000 million yen depending on the valuation amount)Card loanIs. Free to use, mainly in the 1980s-1990sCity bankWas recruiting. However,Bubble burstAnd when the collateral value declined due to the Heisei recession, the amount of collateral was extremely reduced, and new issuance was stopped, but around 2007Chuo Mitsui Trust BankStarted to recruit "α-Style".
- Reverse mortgage
- Until reaching the maximum amount until the age set by the borrower (up to 70-80 years old) for the purpose of living funds after retirement.pensionThis is a loan provided in installments. When the loan period expires or you die on the way, you can pay off your debt by selling your mortgage home.inheritanceIt is a mechanism to offset assets with debt.Chuo Mitsui Trust Bank,Tokyo Star BankAre handling it.
Housing financing by public institutions
As a housing fund loan system by public institutions that still exists,Housing Finance AgencyRepair costs in case of disaster due toTsumate-kun""Housing savings postal savings”, which is a limited loan such as users ofPropertyLoans can be received up to 10 times the balance and up to 8% of the required amountPersonal loan homeowner loan systemThere is. Also,Okinawa Development Finance CorporationThere is also a housing finance loan by the Okinawa Public Corporation (a system equivalent to the Housing Finance Corporation loan, but there are restrictions such as income).
Long time agoEmployee pensionTargeting the insuredPension fund management fundAlthough there was also a "pension housing loan" by the government, it was abolished in 2005 due to administrative reform,Independent administrative agencyWelfare Medical OrganizationTook over.
Japanese Mortgage History
Japanese mortgages have a history of over 100 years.Sino-Japanese warAfter the end of the period and the economy boomed, there was a growing momentum for new buildings among ordinary citizens. However, in the absence of a system such as a mortgage by a financial institution, the housing funds of the general public have no choice but to rely on individual lenders called money lenders, which has been a hindrance to individual home construction and real estate transactions. Because of the need for a real estate finance business by a corporation,Yasuda ZaibatsuIs the founder ofZenjiro YasudaFor real estate finance and its associated businesses for the general public,1896(Meiji 29)Tokyo buildingWas established.1897Published in (Meiji 30)Tokyo Nichini ShimbunAccording to a paper advertisement by the company, the repayment period is set to be 5 years to 15 years, which is said to be the prototype of Japanese mortgages. Therefore, Japanese mortgagebankOr not a public institutionreal-estate companyIt originates from.
As a modern mortgage for salaried people,Hankyu CorporationIs the founder ofKobayashi IchizoWhat was done with the idea of is known. PredecessorMinoh Arima Electric OrbitKobayashi, which established the company, will embark on multifaceted management, such as setting up department stores and entertainment facilities, in addition to its main business, in order to increase the added value along the railway lines.1907(40th year of Meiji), land purchased cheaply in advance, raised the land price by laying a railway, and sold it as a residential area.Monthly installmentMade a sale. To buy landWealthy manWas limited toMiddle classEven to widen the range of customers.
Mortgages from deposit handling financial institutions
Until the latter half of the 1970s, deposit servicing financial institutions hardly developed or spread the same mortgage loan (low interest rate, long term) as it does now. Especially in ordinary banksTime deposit,Government bondSince it is operated mainly by such as, it is not good at long-term lending itself, which is a "liquidity principle" when lending, and as a lending product for general individualsGeneral account OfOverdraftAlthough there were unsecured loans and unsecured guarantee loans, the services for individuals were mainly deposit (saving) business. Also, banks (close to retail business)Mutual bank,Credit unionIndividuals that were the subject of the loan (excludingBusinessman,Profession,Civil servantIt was limited to those with a certain degree of status and stable income.
Therefore, whether it is a property that can be purchased within the range of own funds (savings/property) without receiving debt, or by receiving financial support/gifts from relatives, or buying with a seller of a house like the case of Hankyu Corporation Between them was the only way to get a loan and repay it privately.
In the early 1970s, banks provided mortgages to mothersNon-bankAsHousing finance companyWas established in the 1980s, but due to diversification of financing and expansion of business for individuals due to progress in the XNUMXs, mortgage loans by deposit handling financial institutions, which are currently used, are gradually expanded,Bubble periodWill be inclined towards real estate loans that are highly speculative to corporate counterparts, and the huge amount of money accumulated in 1996Bad debtThis will create a processing problem (jurisdiction problem).
Financing by Housing Finance Corporation
Due to the above-mentioned circumstances, mortgages by private financial institutions were underdeveloped.Special corporationHousing Finance CorporationWas established,Treasury loanBecame popular. Part of the policyFILPIn 25, when mortgages at deposit handling financial institutions became commonplace, due to the abundant financing environment, the fixed interest rates for more than 2001 years and the lending rates lower than private financial institutions. Also had a market share of more than 40% of the total loan balance. However, there were smoldering criticisms that GHLC loans would put pressure on the private sector.
In 2001Koizumi administrationIs launchedAdministrative reformIn 2007Independent administrative agencyHousing Finance AgencyWas established and succeeded, and the GHLC loan was virtually abolished. As an alternativeReal estate-backed securitiesTo an institutional investor to provide housing financing to a private partner.Flat 35The "securitization support project" known under the name was introduced.
AmericaSo, having a house for a long time has been a symbol of poverty (it is accessible to the general public)American dreamIs considered to be one of the realizations ofHome ownershipTo boostSavings loan associationTo helpFederal mortgage bankAndSecuritizationTo helpFederal Housing Mortgage Corporation,Federal Housing Finance Mortgage Corporation such asGovernment support organizationFounded allFDICMember banks are required by law to lend mortgages regardless of race, country of origin, religion, gender, physical disability, or family status (hence the repayment ability is assessed from payment history).Credit scoreIs popular). As a means to spread it to low-income earners, on the assumption that future real estate prices will rise, we will finance housing purchases at relatively high interest rates.Subprime mortgageIs present. However, since around 2006, the increase in real estate prices slowed down, and repayment was delayed. It is said that the management of mortgage companies is deteriorating, and the impact on the US economy is reported. →Subprime mortgage crisisSee.
US MortgagesNon-recourse loanIs often made, but this is an inaccurate expression, and in some states it is false.Arizona,CaliforniaAbout 8 statesHas an anti-deficiency law (a law that prohibits claiming shortages), and if creditors auction a collateral property and the amount of money is insufficient, the strict limit is imposed on the debtor for the balance. Or making it virtually difficult.. This law dates from the 1930sGreat DepressionWas created because it brought harsh consequences to a large number of debtors.. In other states creditorsDeficiency judgment(deficiency judgment), you can ask the debtor to pay the deficitTherefore, it is possible to obtain satisfaction by seizing other assets. However, due to the fact that debtors who delay payment of mortgages often do not have assets to look at other than housing, such procedures may not be taken in practice.
- ^ For 19National Life Basic SurveyThe national average income of households with children is 691.4 million yen, and the overall average is 556 million yen.However, surveys of private think tanks may give lower results (→Part-time workerSee).
- ^ As a directly managed storeSuruga BankWe handle mortgage products.
- ^ Thinking about "annual income ratio" and "annual income burden ratio" How to make a budget for home purchase? SUMO Journal August 2014, 8
- ^ Interest rates rise even though the number of applications decreases due to the corona virus.What are the actual users of the long-term fixed loan [Flat 35]? SUMO Journal August 2020, 8
- ^ "Application of "Guidelines for Private Debtor Private Sorting" started' Tohoku Finance Bureau.
- ^ "For earthquake victims who have difficulty in repayment of loans such as mortgage Do you know the personal version of the guidelines for private arrangements?' Government public relations online, August 2013, 9.
- ^ Guidelines for Private Debtor Private Sorting("About guidelines"General Corporate Edition Private Sorting Guidelines Steering Committee. )
- ^ Guidelines for debt consolidation of victims of natural disasters("Natural disaster debt consolidation guidelines' National Bankers Association. )
- ^ ""Active utilization! Disaster loan reduction and exemption system"' NHK online, August 2016, 4.
- ^ Housing organization demands lump sum repayment "Flat 35" fraudulent Nihon Keizai Shimbun
- ^ Real Estate Secured Loan Comparison Concier｜What is Real Estate Secured Loan?
- ^ There is no such thing as a "non-recourse" state. What you are looking for are "anti-deficiency laws." ..., Viewed June 2008, 6. Since it is a bulletin board article, it is insufficient as a source, but better than not writing it.
- ^ a b Fumi Yamada,Ministry of Justice Auction System Study Group Report “About the real estate auction system in California, Read June 2008, 6.
- ^ The California Foreclosure Rules or “So What Happens If I Let My California House Go Back To The Bank?”, Viewed May 2008, 6.
- ^ Masatoshi Kasai,Ministry of Justice Auction System Study Group Report “About the real estate auction system in New York, Read June 2008, 6.
- Equity and interest repayment
- Installment repayment
- Financial planner
- Flat 35 - Flat 50
- Mortgage planner
- Housing Finance Corporation
- Housing finance company
- Special deduction housing loans -Item name to be entered in the tax return.
- Group credit life insurance
- Fire insurance
- Earthquake insurance
- Worker property formation savings system(Asset housing savings)