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Shanghai banks will resume offering mortgages for housing between 10 and 20 years old. Loans for this kind of property were banned in March, but local banks can now extend up to 60 percent finance. The move follows an announcement in July by the Shanghai branch of the central bank that financial institutions should ease lending restrictions on second-hand properties.
The resumption of mortgages for older homes will be good news for mid and low income families who should now be able to afford to buy a property of their own. Residents with an excellent credit record may even be eligible for 70 percent mortgages.
In March, banks in Shanghai stopped offering loans for second-hand properties over 10 years old. However, insiders say this contributed to a contraction of their business in the first half of the year.
(CCTV.com September 6, 2005)
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