Banks tighten mortgage lending
By Zhang Fengming |
April 27, 2010, Tuesday
|
Print Edition
Print Edition
MORE banks, including HSBC and Standard Chartered, have stopped granting loans for third homes, heeding the central government's call to curb property speculation.
HSBC and Standard Chartered Bank said yesterday they have suspended issuing loans for third or more homes, following the State Council's latest call to rein in credit-driven real estate speculation.
The State Council, China's Cabinet, said banks can halt mortgages for third homes in places where housing prices rise too rapidly or too high. Banks are also ordered to increase interest rates by at least 10 percent and raise downpayment to 50 percent on second homes.
Other lenders, including the Bank of China and the Bank of Communications, said they suspended third-home mortgages in most cases, although not a 100-percent suspension.
BOC will impose an extra interest rate of 20 percent on buyers of third homes. The Beijing-based bank even increased the interest rate on existing first home mortgage clients, a rare move among banks.
BOC, China's fourth-biggest lender, now only offers a rate cut of 15 percent, half from the previous 30 percent discount, on existing first homes. It also requires buyers for a 50-percent downpayment on second homes.
China Construction Bank, the Industrial and Commercial Bank of China and the Agriculture Bank of China were not available for immediate comment yesterday.
DBS said earlier that it stopped mortgages for third or more homes in China.
HSBC and Standard Chartered Bank said yesterday they have suspended issuing loans for third or more homes, following the State Council's latest call to rein in credit-driven real estate speculation.
The State Council, China's Cabinet, said banks can halt mortgages for third homes in places where housing prices rise too rapidly or too high. Banks are also ordered to increase interest rates by at least 10 percent and raise downpayment to 50 percent on second homes.
Other lenders, including the Bank of China and the Bank of Communications, said they suspended third-home mortgages in most cases, although not a 100-percent suspension.
BOC will impose an extra interest rate of 20 percent on buyers of third homes. The Beijing-based bank even increased the interest rate on existing first home mortgage clients, a rare move among banks.
BOC, China's fourth-biggest lender, now only offers a rate cut of 15 percent, half from the previous 30 percent discount, on existing first homes. It also requires buyers for a 50-percent downpayment on second homes.
China Construction Bank, the Industrial and Commercial Bank of China and the Agriculture Bank of China were not available for immediate comment yesterday.
DBS said earlier that it stopped mortgages for third or more homes in China.
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