Source: CCTV.com

01-05-2009 09:12

Special Report:   Global Financial Crisis
Special Report:   House Market under New Policy

Major Chinese lenders are expanding a preferential policy on house loan interests to cut the burden of the country's home buyers hit by the spreading financial crisis.

Major Chinese lenders are expanding a preferential policy  on house loan interests to cut the burden of the country's home buyers hit by the spreading financial crisis.

The Bank of China branch in Shanghai is introducing the policy but its Beijing branch is keeping the rate unchanged.

The Industrial and Commercial Bank of China, the country's largest lender, and China Construction Bank are also making specific rules for similar rate discounts.
  
Home buyers can automatically enjoy a 30 percent reduction in the interest rate cut from the Agricultural Bank of China starting from January.
　　
One Beijing resident said "I hope it will come about soon."

Another Beijing resident said "It can help us save a lot of money."

For individuals who bought houses before October 27th last year and have not paid off their loans, China's central bank announced that their credit interest rates could be reduced to 70 percent of the benchmark rate from the previous 85 percent.
 
The discount will be available for home buyers after their applications go through default record checks. 
 
This year, the interest rate for house loans over five years has been cut from the previous 6.65 percent to 4.15 percent.

But, the interest rate cut will not cover the public housing fund which will remain at 3.87 percent.

Under the rate discount, home buyers with a 500,000-yuan bank loan to be paid off within 20 years can save nearly 60,000 yuan in interest.

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Editor:Qin Yongjing