A number of China’s nationwide banks are loosening the availability of home loans as the government seeks to keep the property market in sound health in the wake of the Evergrande Group debt debacle.
Large-scale banks have dramatically shortened the approvals time for new mortgages since November, according multiple sources speaking to Securities Daily.
The branch of one big state-owned bank situated in Beijing’s Chaoyang district said that it can complete the approvals process for a non-first homebuyer pre-owned residential property loan in as little as a single working day.
Other sources situated in major cities including Shanghai, Shenzhen, Guangzhou and Xi’an have reported a similar loosening of the home loan approval process.
In sharp contrast the approval times for home loans from smaller lenders remain considerably longer as the end of 2021 fast approaches.
“Towards the end of the year our bank’s loan quota is certainly much tighter, and at present it takes at least three months or so for loans to be made,” said the lending officer at a commercial bank in Beijing.
“The situation will definitely improve at the start of next year, when lending times will accelerate.”
Data from the Chinese central bank indicates that as of the end of October China’s personal home loan balance was 37.7 trillion yuan, for an increase of 348.1 billion yuan that month, which was 101.3 billion yuan more than the increase in September.
Data from the China Banking and Insurance Regulatory Commission (CBIRC) further indicates that as of the end of October bank home loans increased 8.2% compared to the same period last year.
Over 90% of personal home loans in China are used to support first home purchases according to CBIRC data.
