(Yicai Global) Sept. 19 -- Beijing's first home mortgage interest rates have continued to rise as bank credit dries up.
Several banks in the city hiked rates on first home loans from Sept. 14. Some pushed rates up to 5 percent to 10 percent above the benchmark rate, while others increased their rates to 20 percent over the benchmark. Many outlets suspend their first home mortgage loan business, Securities Daily reported.
The country's first home lending average interest rate was 5.12 percent last month, 1.04 times the benchmark rate and up 2.47 percent from July, marking eight consecutive months on the rise. It rose 15.35 percent last month, compared to 4.44 percent a year earlier. The average interest rate of first home loans in Beijing was 5.12 percent, data recently released by Rong360.com Inc. shows.
The property market mortgage interest rates in Beijing have experienced five major adjustments this year before this one.
After New Year's Day, most banks in the city changed their first home loan interest rate discount from 15 percent to 10 percent. On March 21, some 16 banks in Beijing adjusted their first home loan discount from 10 percent to 5 percent. After the May Day holiday, eight banks in Beijing moved their first home loan interest rate discount from 5 percent to the benchmark interest rate.
After Dragon Boat Festival on May 30, the first home loan interest rate of the vast majority of state-owned banks, joint-stock banks and city commercial banks in Beijing was back to the benchmark interest rate. On June 5, some banks in Beijing upped their first home loan interest rate to 10 percent above the benchmark.