Bank_Construction bank lowered the Mortgage rates

China's construction bank lowered the mortgage rates yesterday a week after it kept the higher mortgage rates than the other three state-owned banks following the new rules of the Central Bank.

The rate went down by 0.61 per cent to 5.51 per cent, the bottomline regulated by the Central Bank for customers to buy only one house with the five-year borrowing period, though the rate for the borrowing of two or more houses remained at 6.12 per cent.

The rate change of the Construction Bank followed after other banks' policies to keep with the bottomline of the regulation. The Central Bank ruled the commercial banks to lift the mortgage rates above 5.51 per cent, which is the 0.9 per cent of the base rate, from the lower ones.
Three state-owned banks, including Bank of China(BOC), Industrial and Commercial Bank(ICBC), and Agriculture Bank of China, raised their housing loan rates by the 0.2 per cent to 5.51 per cent from March 17, while Construction Bank kept the higher base rate 6.12 per cent.

The spokesman at the Construction Bank said that the reason for the change of the mortgage rates are because of hard competition between the banks, after BOC and ICBC used a smart way to balance the revenue and the property bubble, reported Sina(in Chinese).

But it is unclear that why Construction bank didn't use the same smart way as BOC and ICBC did right after Central Bank's new policy.