China’s top lenders reveal steps to adjust mortgage rates

BEIJING, Oct. 12 (Xinhua) — China’s major national commercial banks unveiled detailed measures Saturday to adjust interest rates for outstanding mortgage loans in line with central bank policies aimed at stabilizing the real estate market.

The change will be implemented from October 25, according to statements from major lenders, including the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank.

Mortgage rates for first, second and other homes will be reduced to 30 basis points below the prime lending rate, the documents say.

This mortgage rate change will be applied uniformly and customers will not have to request it, according to the reports.

The People’s Bank of China last month required commercial banks to reduce interest rates on outstanding mortgage loans, as part of strategies devised by the Government to reduce the financial burdens of property owners.

The move comes after a meeting of the Political Bureau of the Central Committee of the Communist Party of China on September 26 emphasized the need to make efforts to “reverse the decline of the real estate market and stabilize that market.” ”