With its trial offering of fixed-rate home mortgages seeing a slow take-up in the city, China Everbright Bank has extended the service to the secondary market to woo more clients, today's eastday.com reported.
"Less than 300 local residents have applied for the service since it became available early this month, due to the sluggish real estate market. Therefore, we decided to look at the secondary housing market where transactions are booming," said a spokesman for the bank, adding that used-home buyers now have one more option to consider when applying for loans.
In applying for such loans, second-hand home-buyers will face the same requirements as new home-buyers. They will both also have the same fixed rates: 5.94 percent for mortgage terms of up to five years and 6.18 percent for five to ten years. VIP clients of the bank can enjoy fixed-rate mortgages on second-hand housing built after 1994, while previously it was after 2000.
The general bank of China Everbright Bank planned to extend a total of 500 million yuan (US$62 million) in fixed-rate mortgages for secondary home-purchases only in Beijing and Shanghai.