New credit policies for home buyers
16/6/2003 14:29
The People's Bank of China, the country's central bank, issued a
circular recently on supporting mid and low-end home buyers while restricting
the loan criteria for second-home buyers, eastday.com reported
today.
Domestic commercial banks should raise the number of people
approved for loans, according to the central bank.
According to the
circular, commercial banks can extend loans only to individual home buyers if
construction of the main housing structures is completed, in a bid to relieve
the pressure of paying loan interest.
Residential property buyers should
pay at least 20 percent of housing prices as a down-payment when purchasing
their first home, with the proportion to be raised for second-home
buyers.
Domestic commercial banks should register the individual housing
loan records into the credit registration system of PBOC's local branches,
including borrower's loan amount, term of loan and identity card numbers of
borrowers and their spouses.
Commercial banks should get the detailed
information on home buyers by searching the credit registration system before
extending loans to them.
Commercial-use property buyers must pay at least
40 percent of the housing price as initial payment, with the term of the loan no
more than 10 years, according to the central bank.
The new policies aim
to raise credit loan requirements for high-end housing buyers and curb excessive
real estate investment and inflated housing prices, said an expert with the
Shanghai branch of the Bank of Communications.
The Shanghai real estate
market has great development potential, with housing prices expected to
gradually stabilize in the near future, the expert
said.
Wendy Zhang/ Shanghai Daily news
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