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Friday, March 24, 2017, 09:53

China tightens housing loan rules to cool Beijing property market

By Xinhua
China tightens housing loan rules to cool Beijing property market
A sales woman introduces an overseas property program to visitors at a spring real estate exhibition held in Beijing, April 17, 2015. ( Photo / IC)

BEIJING - China's central bank announced on Friday that it is tightening housing mortgage rules to curb speculative purchases in Beijing's property market .

Targeting fake divorces, Beijing housing mortgage applicants who divorced less than one year ago will be regarded as second-home buyers and have to pay more down payment, according to a statement released by the People's Bank of China.

The move is aimed at curbing speculative purchases in Beijing's property market

READ MORE: New rules cut property speculation

There will be stricter investigation of the sources of the down payment to ban leveraging financial products and the applicants' capabilities to pay back the loans, the statement added.

READ MORE: China home prices stabilize following restrictions

Real estate agents should not offer illegal housing financing tools like down payment loans, the statement added.

Beijing decided last week to cool the city's property market by raising the down payment for second homes and suspending housing loans with a maturity of 25 years or more.

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