Major banks in China have started to lower mortgage rates for first-time home buyers, following a year of hovering above the benchmark lending rate.
Aside from the Industrial and Commercial Bank of China, large banks such as the China Construction Bank, Bank of Communications and Bank of China, are now offering a five to 10 percent discount on first-house mortgages, under certain conditions.
However, all joint-stock banks have not lowered their rates, except for Bank of Beijing, which offers a five percent discount to qualified borrowers.
Growing demand and bank policy tune-ups have both relaxed first-house mortgage rates, said Huang Hetao, an analyst at Century 21 Real Estate, a US-based property services provider.
Huang noted that the government aims to implement various first-house loan rates to eliminate the institutional barriers for first-time home buyers without the Beijing hukou.
The rates are unlikely to drop any further from the benchmark rate as the credit environment does not appear to be relaxing, observed Liu Yuan, an analyst from Centaline Property.
However, another industry expert believes there is more room for first-house mortgage to decline, as the Central Bank plans to spur the growth of bank credit.
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