Beijing, Guangzhou and Shanghai Host to China’s Lowest First Home Loan Rates


The mega-cities of Beijing, Guangzhou and Shanghai are amongst the Chinese urban centres posting the lowest first home loan rates in July, despite an ongoing campaign by the central government to contain housing markets.

Data from Rong360 indicates that China’s average first home loan rate was 5.67% in July, equal to 1.1157 times the benchmark rate, for a rise of 0.53% compared to June and a year-on-year increase of 13.63% compared to the rate of 4.99% in July 2017.

Beijing, Shanghai and Guangzhou all made the top ten list for cities with the lowest average first home loan rates out of the 35 urban centres monitored by Rong360.

Shanghai was the city with the lowest first home loan rate in July at 5.16%, for a 5.3% premium against the benchmark rate.

The average first home loan rate in Beijing was 5.47% for no change compared to June, while in Guangzhou the rate was 5.55%, for an on-month decline of 0.36%.

Other cities on the list for lowest first home loan rates in China last month included Xiamen, Kunming, Urumqi, Fuzhou, Dalian, Taiyuan and Changchun.

The Hubei capital of Wuhan was host to the highest rate in July at 6.35%, for a 29.6% premium against the benchmark rate.

Out of the 533 banks monitored by Rong360, first home loan rates at 146 were 10% above the benchmark rate in July, for a decline of 23 compared to the previous month.

173 banks had rates 15% above the benchmark, for a rise of nine relative to June, while 115 charged a premium of 20%, for a decline of 1.

28 banks charged a premium of 25%, while 25 a premium of 30%.