China Unveils Biggest Package Yet to Boost Property Market
- PBOC governor announces cut to outstanding mortgage rates
- China also cut downpayments for second homes to a record low
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China unveiled its biggest package yet to shore up its beleaguered property market, lowering borrowing costs on as much as $5.3 trillion in mortgages and easing down-payment requirements for second home purchases to a historical low.
The People’s Bank of China will cut outstanding mortgage rates for individual borrowers by an average of 0.5 percentage point, Governor Pan Gongsheng said at a press conference on Tuesday. The minimum down-payment ratio on second home purchases will be lowered to 15% from 25%.