Housing News
- Govt. may raise mortgage-loan rates
Date: 27-Sep-2007 Sources: (Shenzhen Daily)
THE government would soon tighten mortgage lending to curb speculation in the red-hot real estate sector, according to domestic media reports yesterday.
Domestic media reported that the government planned to increase mortgage rates to 1.1 times the benchmark one-year lending rate this week and would raise down payment requirements for purchases of second homes to at least 40 percent of their sales value. If the central bank goes ahead with the move, interest rates for five-year mortgage loans could reach as high as 8.613 percent. The central bank has raised interest rates five times this yea, bringing the five-year lending rate to its current level of 7.83 percent.
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