Mortgage policies easing to help boost lending

Commercial banks are expected to see a surge in their lending business and profits, after the government decided to relax the mortgage policies further on Monday, experts said.

"Banks are likely to pass on the discounts to buyers. The mortgage policy relaxation will boost the lending business of banks, as the demand for housing mortgage loans will go up," said Li Peijia, a researcher with the Institute of International Finance at Bank of China Ltd.

"House purchases and financing options for individual needs were not that well-catered to in the earlier regulations. The easier policies will prompt a new group of customers who were unable to purchase second homes before to borrow from banks."