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Banks mull mortgage discount
By Zhang Fengming |
January 7, 2009, Wednesday
|
Print Edition
Print Edition
THERE is no easy way to enjoy the maximum mortgage discount of 30 percent as banks in Shanghai are setting up various requirements for existing mortgage owners to take up the offer.
It has been more than two months since the People's Bank of China allowed banks to double the maximum interest rate discount to 30 percent to spur the property market. Existing mortgage owners are anxious to know how much money they can save from the policy while some banks, such as the Industrial and Commercial Bank of China, are still to announce their policies.
However, Bank of Communications has aired its policy - lenders won't automatically give the double discount and borrowers will have to apply for the lower rate and sign a new contract with added terms.
In most cases, banks said mortgage owners who enjoy the previous 15 percent discount and have no severe defaults on record can apply for the lower rate.
If mortgage owners think their bank is making life too difficult for them to get the increased discount, they can shift to another lender.
BoCom accepts mortgages transferred from other banks if the outstanding loan is more than 1 million yuan (US$146,413).
The Shanghai branch of the Shenzhen Development Bank takes transferred mortgages of more than 500,000 yuan and will waive a commission.
But the bank is still waiting for its headquarters' policy.
It has been more than two months since the People's Bank of China allowed banks to double the maximum interest rate discount to 30 percent to spur the property market. Existing mortgage owners are anxious to know how much money they can save from the policy while some banks, such as the Industrial and Commercial Bank of China, are still to announce their policies.
However, Bank of Communications has aired its policy - lenders won't automatically give the double discount and borrowers will have to apply for the lower rate and sign a new contract with added terms.
In most cases, banks said mortgage owners who enjoy the previous 15 percent discount and have no severe defaults on record can apply for the lower rate.
If mortgage owners think their bank is making life too difficult for them to get the increased discount, they can shift to another lender.
BoCom accepts mortgages transferred from other banks if the outstanding loan is more than 1 million yuan (US$146,413).
The Shanghai branch of the Shenzhen Development Bank takes transferred mortgages of more than 500,000 yuan and will waive a commission.
But the bank is still waiting for its headquarters' policy.
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