Rachel Hou/Shanghai Daily news

In the wake of the recent mortgage rate hike from 5.31 percent to 6.12 percent, local house buyers will face heftier fines for overdue mortgages, today's Shanghai Morning Post reported.
Starting next year, local banks will impose fines on clients who sign deals after March 17 for overdue mortgages at interest rates that are 30 to 50 percent higher than the mortgage rates. In other words, the highest interest rate on an overdue mortgage will be 0.255 percent per day, if the benchmark mortgage rate set by the central bank (6.12 percent) is taken as the base. At present, fines for overdue mortgages are charged at the rate of 0.21 percent per day.
The new regulation, whose effect is more symbolic than real, is part of a government effort to curb speculation in the property market.
Buyers who signed deals before March 17 won't be affected by the new regulations.