Zero deposit loans offered to Chinese property investors on Melbourne project
One of China's biggest financial institutions is offering zero-deposit home loans for off-the-plan apartments in Melbourne and the Gold Coast.
The banking division of PingAn Insurance was offering the loans to Chinese investors in Shanghai, the Australian Financial Review reported..
"Become an Australian property owner with zero down payment," the marketing advised.
"Join hands with PingAn and realise your overseas property dream," it added. The banking division of Ping An unveiled the zero-deposit product to Chinese investors in Shanghai last week.
PingAn and property marketing group Austpac are offering Chinese investors the zero-down-payment option for apartments in Melbourne's West Brunswick and Hope Island on the Gold Coast.
The York, a large apartment development in West Brunswick is one of the developments being promoted by PingAn's no-deposit loan offer.
PingAn is also offering the zero-down scheme for investors buying into the Ramada serviced apartments at Hope Island on the Gold Coast.
The lending practices come as the Australian Prudential Regulation Authority and the Reserve Bank of Australia seek to cool the Australian property market with tighten lending practices for local property investors.
Australian regulators are powerless to prevent the lending practices of offshore banks which has been highlighted in the past by mortgage broking chief John Symond.
Simon Moreira, a sales manager with R Corp, which is developing the The York told the AFR he was unaware buyers were being offered zero-deposit loans.
It emerged Chinese investors being offered zero-deposit home loans over Australian apartments will be charged credit card interest rates, around an annual interest rate of 14 per cent.
China's benchmark, one-year lending rate sits at 4.35 per cent, after being lowered by 25 basis points last weekend.
