China’s Industrial Bank’s branch in Guangzhou city is said to be offering one-year coupon for interest rates on existing home mortgage loans, the first case after the PBOC urged banks to lower the rates on existing home mortgages.
Staff at the bank’s Guangzhou branch said that the bank is currently offering coupons to some clients on their home mortgage rates, but it’s so far only a small-scale pilot.
Earlier this month, the PBOC urged lenders to amend contracts with borrowers to lower the interest on existing home mortgage loans. However, banks have yet to respond to the call as home mortgage loans make up a large share of banks’ lending and the move will have great impact on their business and earnings, industry insiders said.
