The central government of China will likely increase mortgage rates for second-home purchases, its latest step to curb property speculation.
China is planning to increase the rate by as much as 1.2 times the benchmark rate in Shanghai and Beijing, according to a report.
The government’s series of measures to curb speculation and cool the property market began in April last year, when it ruled that interest rates for second-home purchases cannot be lowered to 1.1 times the benchmark rate.
The State Council also launched property measures last month, after the introduction of a property tax in Chongqing and Shanghai.