Oct 17, 2013
Translated by Gao Menglu
　
Following reports that some banks are starting to make it harder for home buyers to secure loans, the People's Bank of China (PBC), China's central bank, has reiterated a commitment to existing housing credit policy.

The PBC yesterday published a question-and-answer statement on its official website. Part of the exchange related to recent reports that some banks had tightened the loan approval process for home loans.

According to the Central Bank's response, some small-and medium-sized banks have tightened policy in relation to housing loans and the loan approval process may take longer than in the past.

Despite these recent moves, the Central Bank reiterated that the direction of real estate credit policy has not changed.  
　　
The stated policy is to implement a "differential" housing credit policy, that is to issue mortgage loans to first-home buyers and continue to facilitate the construction of small and medium-sized commercial apartments and low-income housing projects.

The Central Bank also noted that home loans continued to expand rapidly this year.

During the first three quarters of this year, the total amount of new personal home loans issued came to 1.3 trillion yuan, accounting for just over 17 percent of all the new bank loans issued during that period.

By the end of September 2013, the amount of outstanding mortgages had increased by almost 21 percent year-on-year to reach 8.7 trillion yuan.

Loans that have gone to individuals purchasing low-income housing have increased by more than 30 percent to reach 686.3 billion yuan.

In implementing this "differential" housing credit policy, the Central Bank gives priority to first-time home buyers and loans of this type account for about three quarters of all the personal mortgage loans issued during the first three quarters of 2013.

According to their investigation, the Central Bank said, commercial banks have not officially suspended issuing personal mortgage loans.

However, following the rapid growth in mortgage loans over recent months, some smaller banks have chosen to alter their loan policies. The PBC noted that this will probably result in borrowers having to wait longer for new loans to be approved.

Links and Sources
People's Bank of China: 中国人民银行新闻发言人就当前货币信贷形势答记者问
The Beijing News: 央行：四分之三房贷流向首套房 信贷政策没改变