Skip to content

China Weighs Mortgage Grace Period to Appease Angry Homebuyers

  • Officials consider temporary waivers after payment boycott
  • Property crisis has fueled concerns about social stability
Video player cover image
China Weighs Mortgage Grace Period to Appease Angry Homebuyers

China may allow homeowners to temporarily halt mortgage payments on stalled property projects without incurring penalties, people familiar with the matter said, as authorities race to prevent a crisis of confidence in the housing market from upending the world’s second-largest economy.

Under a yet-to-be-finalized proposal from financial regulators, hundreds of thousands of buyers of stalled homes would be allowed to pause mortgage payments with no impact on their credit scores, the people said, asking not to be identified discussing a private matter. The plan is part of a broader push to stabilize the property market that includes urging local governments and banks to plug some of the funding shortages at developers, the people said.