China Considers Allowing Refinancing on $5.4 Trillion in Mortgages
- Plan would let homeowners switch banks for cheaper loans
- Property slump has dragged down consumption, household wealth
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China is considering allowing homeowners to refinance as much as $5.4 trillion of mortgages to lower borrowing costs for millions of families and boost consumption.
Under the plan, homeowners would be able to renegotiate terms with their current lenders before January, when banks typically reprice mortgages, people familiar with the matter said, asking not to be identified discussing private information. They would also be allowed to refinance with a different bank for the first time since the global financial crisis, the people said.