AFX News Limited China’s BoCom Beijing branch clarifies definition of ’second mortgage’

BEIJING (XFN-ASIA) - Beijing’s branch of the Bank of Communications (BoCom) has defined a second mortgage as one based on the house property of the applicant rather than the applicant’s family, the official Xinhua news agency reported, citing a bank official. ‘In Beijing, we will examine whether the loan applicant, either an individual borrower or a co-borrower, is trying to buy a second apartment,’ said Zhang Xin, an official in charge of credit management at BoCom’s Beijing branch.

‘If any of the co-borrowers already has a house mortgage that hasn’t been paid off, his or her new loan application will be considered as a ’second’ mortgage. It means the person will have to face a higher down-payment and interest rate,’ Zhang said.
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