First-time buyers face pricier mortgages

Although a number of banks in Beijing have raised home loan rates for first-time buyers to stabilize the market, experts said there should be no cause for alarm among potential buyers.

A number of banks in Beijing have decided to set the home loan rate to 10 percent above the benchmark of 4.9 percent.

Most banks will start the new mortgage interest rates this week, while the loan rate for second home purchase remains unchanged, which is 20 percent above the benchmark.