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Tighter controls on mortgage lending in Shanghai
(eastday.com)
Updated: 2004-08-26 15:42

Stricter evaluation methods have been adopted by banks in Shanghai for mortgages on old homes.

The Shanghai branches of both Minsheng Bank and Xingye Bank have completely halted mortgages for old homes. Shanghai Pudong Development Bank only provides mortgages for old apartments built no longer than eight years ago. The Shanghai branches of the Bank of China charge a higher interest rate for borrowers buying old apartment who already own more than one property.

These methods are to lower the financial risk that the chaotic old property market is experiencing. On the other hand, trade insiders claim that these methods "have damaged the old property market".

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