Shanghai banks cut mortgage loans discounts for first-time homebuyers

SHANGHAI: The Industrial and Commerical Bank of China (ICBC) has decided to cut discounts for homebuyers on interest mortgage loans, a Chinese daily reported.

The Shanghai Daily reported on March 31 that the Beijing headquarters had ordered the Shanghai branch to cut down the mortgage rate discount for first-time homebuyers from the previous 30%. 

A source told the daily that a 15% discount is possible if buyers offer a 20% to 30% down payment. A discount of 25% would be given to those who offer a down payment of above 30%, the report said. 

“Currently, this new rule has been implemented in Shanghai. In addition, China Construction Bank, Bank of Communications and Industrial Bank are said to have cancelled the 30% discount mortgage rate policy in Shanghai,” said the report.
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