China Eases Mortgage Down Payment to 20% for First Homes
- Central Bank eases requirements as it steps up support
- Minimum down payment required for second homes cut to 30%
A man rides a bicycle past residential buildings in Beijing.
Photographer: Tomohiro Ohsumi/BloombergThis article is for subscribers only.
China’s central bank said it will allow banks to cut the minimum required mortgage down payment to 20 percent from 25 percent for first-home purchases to the lowest level ever as it steps up support for the property market.
The eased requirements will be for buyers in areas without the purchase restrictions that are applied in some of the biggest metropolitan areas such as Beijing and Shanghai, the People’s Bank of China said Tuesday in a statement on its website. The minimum down payment for second-home purchases was cut to 30 percent from 40 percent, the central bank said.