CRI Home - Photo- Forums - Talk China - Surf China - About China -  
  Webcast | CRI Today | China | World | Biz | SciTech | Sports | Life | Showbiz | Easy FM | Learn Chinese / English | Weather | Events
Housing Mortgage Loan Rates Raised
2006-04-30 11:49:42      Xinhua
China's Public Housing Fund has raised mortgage rates for individual house buyers.

The annual interest rate for loans with a maturity of five years or less will rise 3.96 percent to 4.14 percent, the Ministry of Construction, the supervisor of PHF, said on its website Saturday.

Mortgage loans with a maturity of more than five years will now carry an annual interest rate of 4.59 percent up from 4.41 percent.

A day earlier, China's central bank raised the benchmark lending rate for one-year loans by 0.27 basis points from 5.58 percent to 5.85 percent.

The rate for deposits remains unchanged.

The PHF was established in the 1990s following the reform of the housing system in China.

The PHF was designed to help medium- and low-income earners to buy houses. Employees are required to contribute 5 to 12 percent of their salaries to the fund, with their employers contributing the same amount. PHF mortgage loans carry lower rates than commercial mortgages.

The lending rate hike by the central bank is aimed at preventing the economy from overheating, in response to rapid expansion of loans and fixed-asset investment in the first quarter.

Central bank officials said they hope the hike will help stop housing prices in major Chinese cities from soaring further.

(Source:Xinhua via China Daily/Source:Baidu/a customer at China's ICBC( Industrial and Commercial Bank of China) is reading through a brochure on mortgage loans offered by the bank)

        Talk China        Print        Email        Recommend
Related Stories: claims the copyright of all material and information produced originally by our staff. All rights reserved. Reproduction of text for non-commercial purposes only is permitted provided that both the source and author are acknowledged and a notifying email is sent to us. holds neither liability nor responsibility for materials attributed to any other source. Such information is provided as reportage and dissemination of information but does not necessarily reflect the opinion of or endorsement by CRI.


China Mobile is near a $5.3 billion pact to acquire Millicom of Luxembourg.
The WB endorsed a wide-ranging plan to develop poorer parts of China between now and 2010.
China's latest fuel price rises take them closer to international market standards.
• Motorola Sees Market Share, Margin Gains Through 2007
• MasterCard Prices IPO at $39 Per Share
• Kingfisher Extends Profits Slump
• Oil Prices Slump Below $70
• Stocks Close Higher as Commodity Prices Plunge
• Asian Market Roundup

[an error occurred while processing this directive]