China’s Hainan Cuts Down Payment for First-Home Buyers Again
- Hainan province last cut down payment levels in October
- Move comes as banks cut a reference rate for mortgages
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China’s southern province of Hainan cut the down-payment ratio for first homes for the second time in less than half a year, signaling potential for more easing of mortgage policies to boost slumping home sales across the country.
The minimum down payment for first-time homebuyers was cut from 25% to 20% — the lowest ratio allowed by financial regulators, according to a Hainan Daily report Monday. Hainan, which has a population of 10 million, last lowered the minimum level from 30% to 25% in October.