Banks cut discounts on first-home mortgage rates
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Many banks in Beijing and Shanghai have raised their preferential lending rate on first-home mortgages to 85 percent from 70 percent, the China Securities Journal reported Friday.
Domestic commercial banks have reportedly been informed by authorities to call off the 70-percent preferential interest rate discount, which was launched at the end of 2008, the newspaper cited sources from multiple banks.
Also, according to the sources, first-home buyers now will need at least a 30-percent down payment. The minimum down payment for second-home buyers has been raised to 50 percent and mortgage rates for such homes must be no less than 1.1 times of the benchmark interest rates. Banks are not allowed to give out loans to home buyers that already own two or more houses.
China's business press carried the story above on Friday. China.org.cn has not checked the stories and does not vouch for their accuracy.
