Tens of thousands of people in China are refusing to pay their mortgages because they say that they don't have their homes yet. Those homebuyers say they aren't going to be paying their payments for those uncompleted apartments and the situation has been escalating.

Mortgage Boycott Grows in China

The mortgage boycott has been growing in China and has now even prompted some suppliers to stop paying bank loans too. How bad is the crisis going to get? Home prices have slipped as well because people are refusing to pay their mortgages and it is a protest that has come as a surprise to many.

Homebuyers in dozens of cities are not paying their mortgages now and this is going to have a huge impact if things escalate even further.

Those customers aren't going to keep paying developers if they don't see the goods or have clear delivery times, they've been growing frustrated and this is obviously a last resort.

Chinese developers that don't have enough funds have stopped construction in some circumstances which has prompted homebuyers to stop paying, as those projects are left uncompleted.

The stop of payments from homebuyers is going to impact dozens of different projects around the country, across dozens of different cities.

GF Securities Co. has estimated that some 2 trillion yuan worth of mortgages could be impacted by the ongoing and escalating mortgage boycott in China.

pics:
pixabay
Sources:
https://www.bloomberg.com/news/articles/2022-07-14/more-chinese-homebuyers-refuse-to-pay-loans-amid-contagion-fears
https://www.firstpost.com/world/explained-why-chinese-homebuyers-have-stopped-paying-mortgages-10941171.html
https://www.bloomberg.com/news/articles/2022-07-13/chinese-homebuyers-across-22-cities-refuse-to-pay-mortgages