Banks Split On Rate For 2nd Home Mortgages
By Maggie Zhang |
January 14, 2010, Thursday
|
Print Edition
Print Edition
BANKS in Shanghai are split on the second home mortgage interest rate as regulators didn't specify it.
Some lenders, including the Bank of China, said they don't offer any discounts on the rate for second home loans. But the Bank of Shanghai said it offers up to 30 percent discount on the rate to eligible clients. The Bank of Communications said it offers up to 29 percent discount to clients with a good credit history.
Industry watchers said regulators are to issue guidance on individual mortgages soon to trim risks.
In September 2007, authorities asked banks to require at least a 40 percent down payment and to charge an interest rate at least 10 percent higher than the benchmark rates on second home loans to curb the then red-hot real estate market.
In December 2007, the regulators issued a follow-up notice which clarified that banks should use family, including the loan applicant's spouse or child, as the criteria to determine second homes. But many banks bypassed the requirement in 2008 and early 2009 to boost business when the property market lost steam.
Some lenders, including the Bank of China, said they don't offer any discounts on the rate for second home loans. But the Bank of Shanghai said it offers up to 30 percent discount on the rate to eligible clients. The Bank of Communications said it offers up to 29 percent discount to clients with a good credit history.
Industry watchers said regulators are to issue guidance on individual mortgages soon to trim risks.
In September 2007, authorities asked banks to require at least a 40 percent down payment and to charge an interest rate at least 10 percent higher than the benchmark rates on second home loans to curb the then red-hot real estate market.
In December 2007, the regulators issued a follow-up notice which clarified that banks should use family, including the loan applicant's spouse or child, as the criteria to determine second homes. But many banks bypassed the requirement in 2008 and early 2009 to boost business when the property market lost steam.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
