Beijing tightens mortgage lending once again

Financial institutions in Beijing have tightened mortgage lending once again, with 80 percent of banks adjusting the discounts on mortgage rates for first-timers, from 30 percent down to 15 percent, according to The Beijing Times.

Meanwhile, minimum down payment for first-time homebuyers has been raised to 40 percent from the current 20 percent of the property price. Many industry watchers suggested that the tightening of mortgage policies indicated a possible tightening of control policies and housing regulations.

Several property developers also noted that homebuyers will only be able to borrow 60 percent of the value of the property compared with the current 60 percent.

Zhang Dawei, director of Centaline Beijing, said the ceiling of mortgages for second-home buyers is 50 percent of the property value, while the interest rate is about 1.1 times the benchmark rate.