Heze Is First Chinese City to Cut Mortgage Down Payments, Local Media Reports
- Major banks in Heze cut mortgage down payment ratio to 20%
- More smaller cities may follow suit, research analyst says
Buildings on the skyline in Heze, Shandong Province, China.
Photographer: Shi Yaocheng/VCG/Getty Images
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Banks in several Chinese cities have cut mortgage down payments for some homebuyers, in a move that may boost flagging housing demand, local media reported.
In Heze, a city of 8.8 million in Shandong province which was first reported to make the change, Bank of China Ltd., Agricultural Bank of China Ltd., Industrial & Commercial Bank of China Ltd. and China Construction Bank Corp. lowered the down payment ratio for first-time homebuyers to 20% from 30%, China News Service-backed Economic View and Shanghai-based Cailian reported on Thursday evening.