Source: CCTV.com

05-07-2009 13:42

Banks in Beijing have cut interest rates for loans for second homes. The lowest rates now stand at 70 percent of the central bank's benchmark rates. That's the same as for buying a first home. So far, at least nine banks in Beijing have made the cut.

Banks in Beijing have cut interest rates for loans for  second homes.

They include the Industrial and Commercial Bank of China, Bank of China, China Merchant Bank and Shenzhen Development Bank. The new rates will save people nearly eight hundred yuan a month on mortgage payments on a second apartment worth a million yuan.

Last month, the banking regulator in Beijing required commercial banks to strictly carry out the central bank's policies on the down payment ratio.

The policies require second home buyers to pay at least 40 percent of the total. But the local banking watchdog also allowed banks to fix on their own lending rates.

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Editor:Xiong Qu