Some China Banks Widen Discounts On Loans To 1st-Time Home Buyers - Report
12 April 2012 - 11:56AM
Dow Jones News
Some banks in China are offering wider discounts on mortgage
rates for first-time home buyers, the state-run China Securities
Journal reported Thursday, citing information from banks.
Home buyers can now get discounts of up to 15% for such loans
from Citibank (China) Co. and Agricultural Bank of China Ltd.
(601288.SH), the report said.
A number of local and foreign banks started offering a 10%
discount on such loans in March, after the People's Bank of China
in early February said it would encourage banks to satisfy the
demand for loans among first-home buyers.
The Chinese government allows banks to offer discounts of up to
30% on loan rates for first-home buyers, but not many banks had
done so due to Beijing's crackdown on speculation in the property
market and tight credit controls.
China has slapped curbs on home purchases and tightened credit
to developers and buyers over the past two years to dampen
speculation and ward off social instability. The curbs have taken
effect in recent months, with property prices and sales declining,
pressuring cash-starved developers and other industries linked to
the property market.
Newspaper website: http://www.cs.com.cn
-By China Bureau, Dow Jones Newswires; 8621 6120-1200;
djnews.shanghai@dowjones.com