Nov 07, 2016 04:40 PM

Shanghai Again Tightens Home-Purchasing Rules, Targeting Divorce, in Bid to Cool Market

(Shanghai) — Shanghai has further tightened home-purchasing rules by demanding lenders scrutinize the sources of funds used for down payments — a move that will likely curb the surge of divorce filings among couples seeking to purchase second homes.

A document laid out Thursday by the local market interest-rate-pricing self-discipline mechanism, a group of banks under the guidance of the central bank, highlighted the need to inspect the authenticity of a resident's proof of income in relation to home purchases, requiring commercial lenders to step up efforts to check the income of both the borrower and their spouse.

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