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Banks set new mortgage rates

cctv.com 03-22-2005 11:00

China's central bank raised the floor rate for mortgages, and allowed banks in some cities to lift down-payments, last week. And major commercial banks in Beijing have now set their new mortgages down-payments and interest rates.

Three of the big four state-owned banks have followed the bottom level of the rate, which is 90 percent of the benchmark interest rate. Alistair Shewring

The Bank of China will offer the floor rate to those who apply for first loans, and will charge the benchmark interest rate on those who borrow for the second time. The bank has kept its down-payment at 20 percent.

The Agricultural Bank of China and the Industrial and Commercial Bank of China will also charge the bottom rate to most borrowers, while ICBC said for those who purchase a second home or luxury villa, the down payment will be 30 to 40 percent, and they will be charged the benchmark interest rate.

China Construction Bank, however, did not keep in line with its rivals, and will instead use the benchmark interest rate, which is more than 0.6 percentage points higher than the floor rate.

Besides the big four, other commercial banks including the Bank of Communications, Everbright Bank, Citic Bank and Shenzhen Development Bank, are close to making final adjustments. Insiders of these banks say they will try to charge the competitive floor rate, but could raise charges on particular properties.

When asked how to distinguish if borrowers are buying a second property, sources from ICBC said they can refer to the personal credit information database at the central bank.

Editor:Chen Zhuo  Source:CCTV.com


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