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Mainstream mortgage rate for first-time home buyers in China’s 103 major cities is 4.12% in October, falling by 3 basis points from the previous month, according to data released by Beike Research Institute.
The mainstream mortgage rate for second-time home buyers stays unchanged at 4.91%, showed the data.
In tier-one cities, the mortgage rates for first-time home buyers and second-home buyers are 4.6% and 5.13%, respectively, unchanged from the previous month. In tier-two and tier-three/four cities, the mortgage rate for first-time home buyers are 4.08% and 4.11%, respectively.
The average waiting time for mortgage loan disbursement is 26 days, largely in line with the previous month, showed the data. In breakdown, the average waiting time in tier-one cities is 30 days, tier-two cities 24 days and tier-three cities 26 days.
The targeted mortgage rate cut announced in late September was the main driving force of the declines in mortgage rates, according to Beike.
As of October 19, ten cities monitored by Beike had seen mortgage rates for first-time home buyers drop below 3%, mostly in Central China’s Hubei province and South China’s Guangdong province.
Among tier-two cities, mortgage rate for first-time home buyers had dropped to 3.95%, Wuhan, Tianjing and Guiyang 3.9% and Shijiazhuang 3.8%. Among tier-three and tier-four cities, mortgage rate for first-time home buyers had declined to 3.7%.
The moves come after the PBOC and the China Banking and Insurance Regulatory Commission (CBIRC) said late September that some cities would be allowed to temporarily cut or remove the lower limit of mortgage rates for first-time home buyers, effective till the end of 2022. Â Read more …
In addition, the PBOC lowered the interest rate for loans from the Housing Provident Fund by 0.15 percentage points for first-time home buyers, effective from Oct. 1. Read more …