Chinese Mega Cities Relax Mortgage Rules to Shore Up Housing
- Shenzhen, Guangzhou ease mortgage downpayment requirements
- More homebuyers will be considered as first-time buyers
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Two of China’s biggest cities lowered mortgage requirements for some homebuyers following central government guidance, fanning expectations that more will follow suit to arrest a record housing slowdown.
Shenzhen, China’s least affordable city for housing, and the southern metropolis of Guangzhou issued notices on Wednesday that they no longer disqualify people who’ve ever had a mortgage — even if fully repaid — from being considered as first-time homebuyers. That would make them eligible for smaller downpayment thresholds and lower mortgage rates.