Pursuits
China Cuts Minimum Home Down Payment for First-Time Buyers
- PBOC lowers required mortgage deposit to 25% from 30%
- New-home prices rose in 35 of 70 cities in August, up from 31
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China’s central bank cut the minimum home down payment required of first-time buyers for the first time in five years, stepping up support for the property market after five interest-rate reductions since November failed to reverse an economic slowdown.
The People’s Bank of China cut the minimum down payment for buyers in cities without purchase restrictions to 25 percent from 30 percent, according to a statement released on its website Wednesday. The previous requirement had been in place since 2010, when the government boosted the ratio from 20 percent to help curb property speculation.