China's housing loan policy not to change

The China Banking Regulatory Commission vice Chairman Jiang Dingzhi says the current-implementing housing loan policy will not change. This response is to a rumor that at the conclusion of the year, banks will attempt to tighten credit loans.

The latest statistics from the Beijing Real Estate Trading Management Net shows transaction volume for second-hand properties in the first half of November reached nearly 13-thousand units, an increase of 102 percent from last month. For the first time, the average dealing price hit 1.16 million yuan per unit.

Experts believes halting the loan preferential policy contributed to a jump in sales. In Shanghai, some banks already discreetly tightened offers.

Wiorking staff of CCB (Shanghai Branch) said "Consumers can enjoy a reduced rate, only when the down payment is more than 40 percent of the total home price. This applies to new homes. Otherwise consumers will only receive a 25 percent discount if the down payment amounts to 30 percent of the home price. "

One property agency said "We received the first note from China Construction Bank. The housing interest rate is connected to the down payment of new homes. We haven't received any notes from other banks. It will probably change in the following days."

The tightened loan policy for second-hand homes in Kunming will also influence a large number of buyers. According to the Bank of China in Kunming, before November, buyers can still enjoy a reduced rate for second-hand homes as long as they have a good credit history. After November, they will have to obey rules to tighten loans.

Staff of Bank of China said "We upgraded the interest rate by 10 percent, when the down payment reaches more than 40 percent of the total home price."

Experts say it is normal for property markets to rebound and transactions to increase over the course of the year. If the rumor is true or false, all policies issued by the government aim to develop property market in a stable and healthy way. Home buyers should always think carefully before buying.