|The objective of this study was to empirically analyze how Chinese urban residents use mortgage loan in their purchase of houses. For the research purpose, 205 households were surveyed on use of housing finance in Beijing, using prepared questionnaires in advance. The survey result showed that 39.5% of the respondents used mortgage loan in their housing purchase in Beijing. Most of the mortgage loan users got their loans from four state-owned commercial banks. This implies that the government could effectively govern the housing market by managing qualifications and interest rates under the government control. The households who did not use mortgage loan raised the fund mostly from own capital and their parents` money. In general, it was found that the Chinese, besides mortgage loan from commercial banks, rarely depend on outside sources. The dichotomous logistic analysis by logit model showed that socio-economic variables such as age, income, housing price and entry into the housing provident fund had significantly positive effects on the use of mortgage loan in the purchase of housing.