Bank withdraws mortgage rates policy

cctv.com 03-24-2005 10:36

Under heavy pressure, China Construction Bank has re-adjusted its interest rates on mortgages to the base rate, which is 90 percent of the benchmark interest rate.

It is now in line with its major rivals. The bank said in a statement that it will charge the base rate on those who purchase their first home, and charge the benchmark rate on those who purchase a second home or luxury properties. Prior to this, the CCB has insisted on charging the benchmark rate for all borrowers. Despite two other big banks, the Bank of China and Industrial and Commercial Bank of China, have pledged to use the base rate. The Agricultural Bank of China has yet to make its decision. Meanwhile, real estate operators said ordinary housing will not be affected too much by the new rates, while prices of luxury properties will decline.

Editor:Chen Zhuo  Source:CCTV.com