Home Loan Rates Drop to Record Low in Major Chinese Cities

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Rates for home loans have dropped to record-low levels in at least 80 major Chinese cities, as financial regulators endeavour to keep the property market afloat.

Data released by the Beike Research Institute (贝壳研究院) in September indicates that in over 80% of 103 key cities surveyed first home loan rates have fallen to 4.1%, while second home loan rates have fallen to 4.9%.

Home loan rates are higher in first-tier cities, standing at around 4.60% on average for first home loans and 5.13% for second-home loans.

Beike analyst Liu Lijie (刘丽杰) said that the decline in home loan rates is due to further loosening in the property lending environment in September, as a result of the impact of declines in the benchmark 5-year loan prime rate (LPR) in August.