Analysis: China’s safe-sounding, official mortgage loan-to-value ratio of 55 percent doesn’t account for fast-rising levels of debt for new home purchases
Although the average mortgage has 45 percent of equity supporting it, according to official data, UBS estimates that the loan-to-value ratio has surged from 15 percent in 2012 to nearly 70 percent, and any sudden drop in property prices could see the number go even higher.
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Jan 20, 2017