Several banks in Shanghai have resumed offering loans for third home purchases despite the central government’s decision to ban home loan applications for third home purchases.
However, the interest rates being charged for third home loans seem to be very high.
The Shanghai branch of Industrial and Commercial Bank of China requires a 60 percent down payment for customers wishing to apply for a third home loan, with an interest rate that is 20 percent higher than the benchmark rate.
The Shanghai branch of Agricultural Bank of China, on the other hand, requires a 51 percent downpayment for borrowers applying for a third home loan, with interest rates at least 11 percent higher compared with the benchmark rate.
The China Construction Bank in Shanghai is also offering third home loans, requiring borrowers to pay 55 percent down payment with interest rates that are 20 percent higher than the benchmark rate.