- Flexible and Easy-to-Use Personal Housing Loans at a Fixed Rate

Following the introduction of its fixed-rate personal housing loans in Shenzhen in January 2006, CCB started to promote this product on a nationwide basis this April. All the customers may apply for this type of loans at local CCB branches.

One of the basic features of fixed-rate products is that they may eliminate the risk against the rise of interest rate. Sticking to the customer-centric philosophy, CCB has added new meaning to fixed-rate products and increased the features of its fixed-rated personal housing loans, which may offer strong guarantee and more options for customers.  

On April 28, the central bank again raised the interest rate, as a result of which, the interest rate of personal housing loans also raised. The longer repayment period and the frequently changing interest rate increased the risk of personal housing loans. Therefore, there came the fixed-rate loans, which attracted great attention. 

I. Flexible combination of interest rates. CCB offers 3-year-term, 5-year-term and 10-year-term fixed-rate personal housing loans. During the lending term, the borrower may select a single-term fixed interest rate, the combination of interest rates of different terms, or the combination of fixed and floating rates. While applying for the fixed-rate loans, the borrower only need to decide on the first fixed-rate term. Upon the expiry of the first term, the borrower may decide on the interest rates for the remaining repayment term. The borrower may select either the floating rate or the 3-year-term, 5-year-term or 10-year-term fixed rates.

II. Reduced payment of interest. To lighten the burden of the borrower, CCB sets up a relatively low level of fixed interest rate. If the borrower chooses a combination of floating and fixed rates for the loan with a term over 3 years rather than a single floating rate, he or she may save interest payment.

III. Low risk. The fixed-rate personal housing loans may help the borrower to effectively reduce risks, fix the borrowing cost, accurately calculate her or his expenditure, and get away from the impact of fluctuating interest rates. The upward adjustment of lending rate indicates that China is now in a cycle of interest rate rise. If customers wish to obtain substantial benefits, it might be time for them to apply for the fixed-rate loans.

It is said that CCB has not formulated special rules on the target client, usage and term of the fixed-rate personal housing loans, compared with the existing floating-rate products. Any customers that select floating-rate products may choose the fixed-rate products.

Flexible combination of interest rates and free from housing loan anxieties. The fixed-rate products introduced by CCB are a good reflection of CCB’s customer-centric philosophy. These products give customers more freedom to select the combined interest rates according to their own needs. The fixed rate also provides a guarantee for customers for they do not need to worry about the risk incurred by the fluctuation of interest rates any more and may start to enjoy a better housing life.