China Cuts Down Payment, Mortgage Rates in Stimulus Drive
- Down payment minimums for first-time homebuyers cut to 20%
- Cities to decide their own rates according to market condition
China moved to allow its largest cities to cut down payments for homebuyers and encouraged lenders to lower rates on existing mortgages in its latest attempt to halt a slide in the country’s residential property market.
The nationwide minimum down payment will be uniformly set at 20% for first-time buyers and 30% for second-time purchasers, according to a joint statement from the People’s Bank of China and National Administration of Financial Regulation on Thursday. Mortgage-rate cuts will be negotiated between banks and customers. Both policies go into effect Sept. 25.
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China Cuts Down Payment, Mortgage Rates in Stimulus Drive