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Beijing banks stop mortgage loans to third-home buyers

By Ren Jie (chinadaily.com.cn)
Updated: 2010-06-04 14:33
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Commercial banks in Beijing took a further step in tightening home mortgage loans and stopped lending to third-home purchasers, the Beijing Times reported Friday.

Staff at a State-owned bank said they had been officially informed by the lender that applications for third-home mortgages would not be approved, the paper said.

Insiders from Industrial and Commercial Bank of China, China Construction Bank, China Merchants Bank, Bank of Beijing and Minsheng Bank also said third-home mortgage would not be approved.

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Foreign-funded banks on the mainland, including HSBC, the Bank of East Asia, and Citibank China, adopted even stricter rules on mortgage loans. Most of them have been saying "no" to third-home purchasers since May, a month earlier than the Chinese banks, The Beijing Legal Times said Thursday.

However, customers seeking third-home mortgages made up less than 10 percent of the total number of borrowers, said the Beijing Times, quoting an insider at 5A Home Loan Services, a real estate brokerage in Beijing.