REGIONAL> Development
Fujian banks tighten 'two sets of mortgages' policy
By Hu Meidong and Liu Xintian (China Daily Fujian Bureau)
Updated: 2009-07-15 15:33

The Fuzhou branches of ICBC, ABC, BOC and China CITIC Bank have implemented changes to tighten the "two sets of mortgages" policy. The new policy will change the ratio of the lowest down payment to 40% and the lending rate to 1.1 times the benchmark interest rate.

BOC and China CITIC Bank also said that people who have purchased a set of apartments should deal in accordance with the "two sets of mortgages" plan even if the first loan has been settled.

Prior to implementation of the new policy, most banks in Fuzhou were in line with the provincial government stipulation of a preferential policy to second apartments (a low down payment of 20% and 70% lending rate of the benchmark interest rate).

An unnamed employee from the Fuzhou CCB sub-branch said related files had not been received yet. As of July 13, the bank still maintained 20% of down payments for “improving ordinary houses' living space" loans and a 70% interest rate discount. But the employee emphasized that the adjustment to the related policy would likely be initiated soon.