There are reports that large banks are tightening their crediting for 'nano-flats,' as well as raising interest rates. Wang Meifeng, general manager of Zhongyuan Mortgage, responded that banks are not uniformly increasing mortgage interest rates for 'nano-flats,' and that such cases are only a small portion of individual mortgages that are evaluated on a case-by-case basis. Mortgage approval criteria are often not singular, but based on multiple factors that include the value and condition of collateral, the borrower's repayment ability and income, and the quality of their credit record. These all have the potential to influence whether mortgage loans can be approved and at what interest rates. Following the cooling of the property market, due to the greater diversity of buyer types, banks may take into consideration more credit risks when approving investment-oriented or multi-mortgage buyers.

Regarding 'nano-flats' (referring to units with an area between a hundred to two hundred square feet), Wang noted that over the past decade, they have significantly increased due to the trend of high housing prices and a higher demand for more affordable and smaller units. However, as the government has begun selling land with a minimum unit size requirement starting from February 2022, the supply of such units has decreased. But due to the previously high prices of 'nano-flats' and inadequate pricing, the volatility of valuations is relatively high, causing some banks to be more conservative in their mortgage allocation. However, as the quality and value of 'nano-flats' on the market vary, it is unlikely that banks will restrict their mortgage lending policies and raise interest rates as a whole.

Wang Meifeng also believes that banks will consider their role and function in providing building mortgage loans to society, and evaluate credit risks from a reasonable approval perspective. Currently, the banks' mortgage disbursement and approval feet show a large degree of disparity, so it is suggested that potential home buyers and mortgage applicants first learn more about the current approval criteria and possible approval time frames, as well as the interest rate ranges that may be approved. In addition, she mentioned that the new lending rates approved by banks on the market are still mostly at 4.125%, but mainstream rates are not fixed. Banks evaluate them based on various factors, and some banks have tiered interest rates. For example, smaller mortgage amounts of less than 2 or 3 million yuan may have lower interest rates of up to 4.225% instead of 4.125%.

She added that since the first quarter of this year, banks have gradually adjusted their mortgage loans due to the continued high cost of funds. They first focused on reducing mortgage rebate incentives to save costs, and later some banks adjusted their approval feet for some non-mainstream or relatively high credit-risk mortgages, or raised their interest rates. These include village houses, Tong Lau, single-building old buildings with more variable property conditions and lower turnover rates, and the commercial property mortgage market.

She also added that this year, some banks have adjusted their mortgage loans due to the continued high cost of funds. They first focused on reducing mortgage rebate incentives to save costs, and later some banks adjusted their approval feet for some non-mainstream or relatively high credit-risk mortgages, or raised their interest rates. These include village houses, Tong Lau, single-building old buildings with more variable property conditions and lower turnover rates, and the commercial property mortgage market.