Source: CCTV.com
01-07-2009 09:49
Special Report: House Market under New PolicyAs most Chinese lenders are still yet to release details on preferential interest rates for house loans, experts are suggesting home buyers take it easy and wait for a while.
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| As most Chinese lenders are still yet to release details on preferential interest rates for house loans, experts are suggesting home buyers take it easy and wait for a while. |
This year, the interest rate for house loans over five years has been cut from 6.65 percent to 4.15 percent. Insiders say compared with the 3.6-percent deposit rate over five years, banks' revenues from rates differences will be greatly shrunken. This is why they are reluctant to offer preferential loans to home-buyers. But insiders say as smaller lenders have taken the initiative to slash rates, the big state-owned banks have no choice but to follow suit.
Yin Zhongli, Researcher of Chinese Academy of Social Science said "If they don't take similar action, their customers will probably choose other banks. You should know that for banks, housing loans are high quality assets. They can not afford to lose those clients."
So far, most banks haven't released any details, mainly in hopes other banks will not be able to use their information for reference.
Yin Zhongli said "Under the pressure of competition, once a bank launches detailed information, other banks will quickly do the same. I suggest people wait for a while."
Experts also say that if home buyers fail to pass default record checks in one bank, they can transfer their housing loans to another bank and retry their application.
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Editor:Xiong Qu
