Shanghai and Shenzhen, China raised mortgage terms

Shanghai MCD two major cities in China, Shanghai and Shenzhen, China last week issued a number of policy curb its property market, including the installation payment terms for buyers of second homes.

Under the new law, in Shanghai, which came into force on Friday, with a house and pay at least 50 percent, up from 40 percent when the mortgage loan application. The minimum pay increase of up to 70 percent and higher home prices criteria for home normal.

Home buyers are not local people have also shown that it has to pay income tax and social security costs in this period of 5 consecutive years, up from 2 years under the old requirements.

Shanghai has banned developers and housing agencies not to provide credit to customers. The city also has pledged to prevent more stringent mortgage business speculation and price hikes.

Mr. Gu Jinshan, director of housing and urban development committees in Shanghai, said that these laws are aimed at curbing the rise in the property market in Shanghai, which are caused by irrational feelings feeding speculation and illegal practice of companies and agencies .

In Shenzhen, China government also issued a similar policy last Friday night ago.