Central bank sets criteria for buying second homes
12 December 2007
The People's Bank of China and the China Bank Regulatory Commission have jointly released a circular clarifying the definition of a "second home" for residents applying for a housing mortgage in a bid to cool the investment fever on local property market., Xinhua Net reported (in Chinese). An earlier regulation in September stated that residents buying second homes must pay banks 40% of of their mortgages and interest of more than 10%, second house, though the term "second home" was unclear. According to the circular, banks will define property ownership as by families rather than by individuals.
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