China is Raising Mortgage Rate on Residential Property

China started raising mortgage interest rate on residential property purchases in a group of cities in the country.

The state-owned banks started raising the interest rate on first home mortgages by 10%, while the second home mortgage will go up 15% to 20%, in several cities.

At present, the lowest mortgage rate in the country are available on the markets in the cities of Xiamen(4.96%), Shanghai(5.04%), Kunming(5.12%), Urumqi(5.21%)、Dalian(5.23%), Taiyuan(5.27%), Harbin(5.30%), Beijing(5.33%), Guangzhou (5.34%), Xi'an(5.35%).

In the southern city of Guangzhou, the Big Four, including the Bank of China, the China Construction Bank, the Agricultural Bank and the Industrial and Commercial Bank of China, hold more than 80% of housing loans. The benchmark interest rate is 4.9%. At present, 1.1 times the benchmark was widely the mainstream mortgage interest rate.

- APMR News