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Seniors to the Rescue of China’s Housing Market

The Chinese government is attempting a variety of measures to rescue the sinking housing market. There was a story that banks in Nanning city of Guangxi province have increased the age ceiling for mortgage applicants to 80, and shortly afterwards, banks in Beijing raised the limit to 95.

A local newspaper, Beijing News reported that a branch of the Bank of Communications allows the mortgage applicants to be as old as 95 years of age, with the condition that the applicant’s children guarantee the loan and that the borrower’s pension and the monthly income of the guarantor are at least twice the monthly mortgage payment.

A researcher at the Bank of China said the banks’ practice of extending the age of applicants for mortgages reflects the changing demand for housing from a population that is aging. The policy is aimed to help “stimulate demand” in the current sluggish housing market in China.

Source: Central News Agency (Taiwan), February 19, 2023