CCTV4 Interviewed Professor Chen Zhuming of Our School about the Interest Rate of Housing Loan 

The loan quotas are in tension again in the housing loan market of Guangzhou, and the interest rate for the first housing loan rises 35% at most in some companies. On May 30th, CCTV4 interviewed Professor Chen Zhuming of our school about the interest rate of housing loan. Professor Chen Zhuming believed that the upward trend of interest rate of housing loan this year was hard to change due to the obvious decline in M2, the decrease in money supply, the control of credit line, and other factors.

Record of the report:  

At present, the interest rate for the first housing loan still rises 10% in the state-owned banks in Guangzhou. The head of Personal Loan Department said that they are ready to raise the interest rate at any time, and now they are waiting for the headquarters’ notice. “The quota for public loan and personal loan are always in tension this year. Now the interest rate for the first housing loan in 4 commercial banks in Guangzhou rises more than 20%, and the interest rate for the first housing loan in some small and medium-sized commercial banks even rises 35%, the industry insiders believe that domestic interest rate of housing loan will continue to rise. 

Professor Chen Zhuming of our school:

In general, there is a decline, obvious decline, in our M2 (an important indicator to reflect money supply), so the money supply is reduced, and also due to the control of credit line, there is no much loanable fund. And also considering other demands and the real estate credit policy, I think the upward trend of interest rate of housing loan is hard to change.

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At present, a few commercial banks can shorten the time of the granting of loan to about two weeks for VIP customers, and most banks have to extend the time to about two months, the industry insiders predict that this situation may become common this year.