The Shenzhen branch of the mainland state-owned bank Construction Bank has raised its mortgage rates since May 7, becoming the first major bank to raise its mortgage rates. The outside world has speculated: this may be a signal that mortgage rates on the mainland have begun to increase, and subsequent banks will follow one after another.
According to several mainland media reports, on May 6, the Shenzhen branch of China Construction Bank issued a notice saying that it would adjust mortgage interest rates to implement LPR (loan prime rate) +45BP (equivalent to 5.10%) for the first suite and LPR +95BP (equivalent to 5.60%) for the second suite, up 15BP and 35BP respectively compared to the previous, but the interest rate for residential housing loans However, the interest rate for commercial housing loans for secure homes remained unchanged, with LPR+30BP (equivalent to 4.95%).
Yan Zhixiong, general manager of the housing finance and personal credit department of the Shenzhen branch of China Construction Bank, confirmed the authenticity of the notice and said that Shenzhen CCB started to implement the adjusted housing loan interest rate on the 7th.
Some industry insiders believe that the adjustment of the CCB’s interest rate for the second suite is higher than that for the first mortgage, which is related to the regulatory requirement to strictly implement the differentiated housing credit policy. There are also bank account managers said that the current second-hand mortgage approval has become slower than before, queuing mortgage waiting time is generally at least 1-2 months.
The market expects that after Shenzhen CCB adjusts the first and second suite mortgage rates, other large state-owned banks may follow one after another. Song Ding, deputy director of the CPC Urban Economy Expert Committee, said that after CCB, several other large state-owned banks should have followed suit.
Recently, as Shenzhen’s regulation of the property market continues to tighten, especially the authorities introduced the reference price of second-hand houses is only 70% of the market price, and banks lend according to this reference price, directly to the second-hand house transactions into the freezing point.
Shenzhen Real Estate Agents Association published data showing that the average weekly net signings of second-hand houses in the past two months was only about 1,000 sets, and its latest published data showed that 4,396 sets of second-hand houses in Shenzhen were signed in April (including self-help net signings), down 9.7% from the previous year, with low and stable turnover becoming the norm. 、
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