|
Tighter controls on mortgage lending in Shanghai
(eastday.com)
Updated: 2004-08-26 15:42
Stricter evaluation methods have been adopted by banks in Shanghai for
mortgages on old homes.
The Shanghai branches of both Minsheng Bank and Xingye Bank have completely
halted mortgages for old homes. Shanghai Pudong Development Bank only provides
mortgages for old apartments built no longer than eight years ago. The Shanghai
branches of the Bank of China charge a higher interest rate for borrowers buying
old apartment who already own more than one property.
These methods are to lower the financial risk that the chaotic old property
market is experiencing. On the other hand, trade insiders claim that these
methods "have damaged the old property market".
|
