Mortgages and money transfers for foreigners in China: who can borrow and how capital controls work

Buying a home in mainland China is not only a question of whether you are allowed to. It is also a question of how the money gets in and, later, whether it can get out. This article covers both: who the banks lend to, what the lending terms look like and how foreign currency and sale proceeds move under the foreign exchange rules. It is general information, not financial or legal advice, and the rules change. We have no listings in China and nothing here is an offer.

Who can borrow

Lending follows eligibility to buy. The rules that shape it date from Circular 171 of 2006 and Circular 186 of 2010: a foreign individual who has worked or studied in China for at least a year may buy one residential unit for their own use. A later circular is described by commentators as not repeating the one-year requirement, and the position on the one-unit limit is unclear. We could not confirm a 2015 relaxation, so treat the one-year and one-unit rules as the practical starting point and ask the housing authority of the city you have in mind. A bank handout we saw also says investment property purchases are not permitted.

On top of that, banks set their own conditions. Commercial guides report that you usually need:

• a valid residence permit, with a work contract matching its validity;
• tax and social-insurance records for the last 6 to 24 months;
• a Chinese bank account in your name.

Cities differ. The same guides mention that Beijing asks for three years of social-insurance or tax records for purchases inside its fifth ring road, while Shenzhen lowered the requirement to one year. Treat these as reports, not as a checklist, and confirm with the bank.

If you do not live in China, expect to be a cash buyer or to finance the purchase elsewhere (see the last section).

Down payment, interest and term

The national picture has moved quickly:

• In May 2024 the minimum down payment for a commercial personal mortgage fell to 15% for a first home and 25% for a second, and the nationwide floor on mortgage interest rates was abolished (People's Daily, gov.cn, 17 May 2024).
• The notice of 24 September 2024 by the central bank and the financial regulator set a single national floor of at least 15% with no separate first-home and second-home levels, leaving provincial branches and local regulators to apply city-specific approaches (gov.cn English, via a summary).
• A page of the central bank's Nanjing branch that you may find online describes 20% and 30%. That is the notice of 31 August 2023, now superseded.

Cities can set higher floors in practice, and banks look at your income and credit record. The interest rate is usually the loan prime rate (LPR) plus or minus a spread agreed with the bank. As reported for 20 August 2026, the 1-year LPR was 3.0% and the 5-year LPR, the benchmark for mortgages, was 3.5%, unchanged since cuts in May 2025. We did not find the October 2026 fixing, so check the latest one. One guide gives a maximum term of 30 years.

Bringing money in

China controls the conversion and movement of foreign currency. Three points matter to a foreign buyer.

• You will need to show where the money comes from. Banks run source-of-funds checks, and one guide reports stricter verification for transfers above RMB 5,000 or USD 1,000 from 1 January 2026.
• In September 2025, according to a media report, qualified overseas individuals became able to settle and pay foreign exchange for a home purchase on the signed purchase contract, before the registration certificate is issued. The State Administration of Foreign Exchange (SAFE) extended this nationwide after a pilot in the Greater Bay Area. Who qualifies did not change.
• A bank handout describes an annual facilitation quota of the equivalent of USD 50,000 per person for non-mainland individuals. Above it you document a genuine purpose, such as a purchase contract, and for a single settlement above USD 50,000 the converted yuan must be paid directly into the counterparty's domestic account. The SAFE page we found for the quota dates from 2007, so confirm the current rule with your bank.

Use only licensed banks and documented routes. Informal channels are illegal and would also leave you without the paperwork you need when you sell.

Getting money out

The Shanghai government's FAQ, sourced to the Bank of China, says a non-resident may buy foreign exchange with the proceeds of a house sold on the mainland. The steps are: the title is transferred at the housing authority, the seller pays the tax on the sale and obtains proof, then buys foreign exchange at the bank. The documents listed are:

• a passport or valid ID;
• the transfer contract and the registration certificate;
• the tax voucher from the local tax authority;
• a Tax Filing Form for External Payments if the amount is above USD 50,000;
• a notarised power of attorney if an agent acts for you.

The page states no cap and has no date. Law-firm commentary on practice for foreigners is older and describes it as unpredictable, especially for corporate sellers. So keep the full chain of evidence: how the funds came in, the purchase and sale contracts, the title documents and the tax records.

Currency risk

Your costs and your result are measured in your own currency, not in yuan. A move in the yuan against the euro or the zloty can erase a rental yield or add to a loan. We give no forecast. If you finance in yuan but earn in another currency, you carry the exchange risk on every instalment.

Why financing from home is often the practical route

For a buyer who does not live and work in China, a loan secured on property in your own country, or a personal loan, avoids both the Chinese eligibility conditions and the conversion limits on instalments. It has its own costs and risks. See mortgage in your country against property abroad, mortgages for non-residents, sending money abroad for a property purchase from Poland, currency and payment for overseas buyers and multi-currency accounts and exchange rates. For getting money back, read repatriating money after selling property abroad.

For the rest of the picture see who can buy property in China and how, taxes and fees, the 2026 market, prices and developer risks and Hong Kong mortgages for non-residents. The whole set is in the China and Hong Kong guide.

FAQ

Can a foreigner who does not live in China get a mortgage there? Reports suggest that banks generally require a residence permit, local income and tax records, so a non-resident should not count on one. Ask the bank and the city housing authority before you plan around it.

Is the USD 50,000 quota a limit on how much I can pay for a home? Not by itself. A bank handout says larger amounts need documents such as the purchase contract, and the 2025 reform lets eligible buyers settle foreign exchange on a signed contract. Your bank decides the paperwork.

Can I take the sale proceeds out of China? The Shanghai government FAQ says a non-resident can buy foreign exchange with the proceeds of a mainland sale after paying the tax, and lists the documents. Practice can differ, so plan the paperwork at the time of purchase.

What this means for a normal buyer

• Check eligibility first. If you cannot buy under the local rules, the financing question does not arise.
• Do not rely on a mortgage unless the bank has confirmed it in writing.
• Keep every document on how the money came in, because you will need it to take money out.
• Use licensed banks only and ask for the current SAFE checklist.
• Compare with financing at home before you commit.

If you are weighing China against other markets, an independent buyer-side adviser can compare options and bring in a local lawyer. D.H. Realting works from Warsaw as an independent consultant; ask us how we are paid, as you would ask anyone.