[photopress:real_estate_apartment_shanghai.jpg,full,alignright]China’s central bank and banking regulator has confirmed interest rates and down payments on some categories of mortgage will be increased.
According to the notice published on the website of China Banking Regulatory Commission (CBRC), the rate on loans for second homes and on commercial real estate will be raised to least 1.1 times the benchmark lending rate of similar duration.
Mortgage down payments for second homes and for mixed commercial and residential units will be raised to 40% and 45% respectively from 30% and 40% previously. The down payment for apartments for commercial use was also raised to 50%.
Loans to buy commercial property must have a duration of no more than 10 years.
Earlier this month, China raised its one-year lending rate for the fifth time this year to 7.29%, and the five-year or over 5-year lending rate was increased to 7.83%.
The notice said that for first-time home buyers, the minimum deposit for an apartment less than 90 square meters has been maintained at 20%, but larger apartments will require deposits of up to 30%.