Many banks in Shenzhen have lowered or even canceled their discounts on mortgage interest rates, making it harder for first-time homebuyers to get the usual 15-percent discount.
Normally, first-time homebuyers can get 15-percent discounts off the benchmark interest rate set by the People’s Bank of China.
Interest rate discounts on housing loans from China Construction Bank’s Shenzhen branch are just 10 percent for most buyers now. Homebuyers who apply for loans of more than 1.5 million yuan (US$238,000) can get a 12-percent rate discount. Bank of China and the Industrial and Commercial Bank of China also have lowered their discounts.