PBOC ORDERS TIGHTER MORTGAGE CHECKS
Banks told to crack down on buyers trying to get around second-home purchase rules
BEIJING buyers unchanged. First-home buyers need only pay a minimum of 35 per cent.
“Recently there have been more households that use divorces to enjoy first-home mortgage policies,” said the PBoC operations office.
“This has not only affected policy effectiveness, but will also lead to problems such as financial disputes and add to credit risks borne by commercial banks.”
Under the PBoC guidelines for the capital, effective immediately, banks were also told to strictly check the source of down payments by individuals purchasing property, carefully assess the ability of borrowers to repay loans, and improve on their residential property valuations.
Meanwhile, Beijing’s land authority said yesterday it had banned the registration of “abnormally-shaped” residential spaces, such as extremely small rooms, passageways or garages, effectively blocking the sale of such properties.
Those spaces “don’t serve practical living functions”, said the Beijing Municipal Bureau of Land and Resources in a post on its official Weibo account, China’s equivalent of Twitter.
Local media have reported cases of tiny residential spaces, here, being sold at sky-high prices. Reuters
People’s Bank of China has instructed banks to strictly check the source of down payments, carefully assess the borrowers ability to repay loans, and improve on property valuations.