Source: CCTV.com

02-05-2009 09:14

The Industrial and Commercial Bank of China will cut mortgage rates to 70 percent of the benchmark rate for preferred customers. ICBC clients who already have a preferential mortgage rate of 85 percent of the benchmark will automatically be shifted to the lower rate.

The Industrial and Commercial Bank of China will cut mortgage rates to 70 percent of the benchmark lending rates.

The world's largest bank by market value announced on Wednesday that eligible mortgage clients can enjoy the discount starting next Tuesday. It had previously announced Sunday as the start date for the offer.

Staff of ICBC Tel Service said "If your loans are issued before last October 27th, and already with the preferential mortgage rate at 85 percent of the benchmark, if you don't have more than twice delayed mortgage payments or other blemishes on your record in ICBC, you can enjoy the discount as of February 10th. "

On a mortgage of 800,000, the additional discount will save more than 380 yuan for each account, a savings of over 90,000 yuan on a 20 year mortgage. It's estimated that more than one-million ICBC clients are qualified for the discount.

A sound credit record is required to be eligible. Most of China's banks now offer their best customers preferred mortgage rates. However, clients with CCB and BOC and some small banks will need to apply for the discounts. However, the preferential rate is removed if a mortgage holder is late on two consecutive payments.

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Editor:Xiong Qu