BOC raises housing loans discount

The Bank of China says first-time home-buyers will now need to pay higher rates for mortgage loans. The discount which allowed them to pay 70 percent of the benchmark rate has now been raised to 85 percent.

But only VIP customers with stable jobs and good credit records can qualify to apply for discounted rates. New moves aim to curb the volume of new loans and lower potential risks in the mortgage lending sector.

Mid-January saw the BOC asking its branches to put a brake on lending after an overly rapid expansion in new loans in the first half of the month. It has also stopped working with property agents on loans for pre-owned units.