China’s ‘Big Four’ Banks Determine Criteria for ‘Second Home’

Posted by Bill Belew on October 18th, 2007 in Doing Business in China | No Comments

The People's Bank of China, China's central bank will establish a unified criteria that defines what a 'second home' menas.

The four biggest banks -

Industrial and Commercial Bank of China (ICBC)

Bank of China,

China Construction Bank, and

Agricultural Bank of China

have determined "Three Basic Lines" =

1. a loan from personal provident funds will not be taken into account when judging a second-home mortgage.

2. a borrower who has paid off all his previous home loans will be considered a first-home buyer.

3. a transaction by a home loan borrower's spouse will be defined as a second-home purchase.

The minimum mortgage down payment for second-home buyers was raised to 40% from 30% last month to curb speculation and ease risks.

In August in 70 some major cities in China's property prices were 8.2% higher this year than they were last year. They were 7.5% higher in July.

Prices are going up…and going up faster.

Now is a great time to be a property holder in China.

Do you have a home? a second home? a third home?

Tags: Asia News

Post a new comment