China's 6 main national commercial banks declare plans to adjust mortgage rates
Date
9/30/2024 4:18:23 AM
(MENAFN) China's six major national commercial banks have announced plans to adjust mortgage rates for existing home loans in accordance with the central bank's policies aimed at stabilizing the property market. This decision comes as part of broader efforts to alleviate financial pressures on homeowners amid challenging economic conditions. The banks involved include the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China construction Bank, Bank of Communications, and Postal Savings Bank of China.
According to the banks' statements, specific details regarding the adjustments to mortgage rates for existing home loans will be released on October 12, 2024. These changes are set to be implemented by October 31, 2024, reflecting a coordinated effort to address the needs of borrowers and enhance the overall stability of the housing market.
On Sunday, China's central bank issued a directive requiring commercial banks to lower mortgage rates for existing home loans, emphasizing the importance of reducing the financial burdens faced by property owners. The central bank's guidance specifies that mortgage rates for first homes, second homes, and other categories must be reduced by at least 30 basis points below the current loan prime rate by the designated deadline of October 31, 2024.
This initiative highlights the Chinese government's commitment to supporting the real estate sector and ensuring that homeowners can manage their financial obligations more effectively. By lowering mortgage rates, authorities aim to boost consumer confidence and stimulate demand in the housing market, which has faced significant challenges in recent years.
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