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Bank of China axes 30% discount home loans

By Ren Jie (chinadaily.com.cn)
Updated: 2010-02-03 15:49
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First-time home buyers will no longer be able to enjoy a 30-percent discount on the interest rate of apartment loans at The Bank of China, the Beijing News reported today.

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The bank has reduced the interest discount for first home buyers from 30 percent to 15 percent. Meanwhile, they have also suspended cooperation with home agencies on second apartment mortgages, the paper said.

Only few good quality customers will be eligible to apply for the 15 percent discount as the lender's credit quota is limited, the paper said, citing a customer manager inside.

So far other commercial banks in Beijing do not look set to follow suit and still provide a maximum 30-percent interest discount for their clients, but a stricter qualification check will be adopted.
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