Chinese banks raise mortgage rates, helping to rein in runaway prices that puts housing affordability further out of reach

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Commercial banks across several Chinese cities have begun raising their mortgage rates, as they increase the cost of buying homes to help the government keep a lid on speculative buying that is fuelling a runaway housing bubble.

In southern China’s technology metropolis Shenzhen, nine banks followed China Construction Bank in raising the mortgage rate for first-time buyers by 15 basis points to 5.1 per cent, while second-home buyers have to pay 5.6 per cent for loans, up 35 basis points.

Even…

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