Reviving Housing Industry
On the afternoon of May 17, the People’s Bank of China and the National Financial Regulatory Administration jointly issued a notice lowering the minimum down payment ratios for first and second home loans to no less than 15% and 25% respectively. The People’s Bank of China also announced the removal of the nationwide mortgage rate floor for first and second home loans and reduced the interest rates for individual housing provident fund loans.
“These adjustments by the central bank mark the most lenient down payment policy in the history, with the down payment ratios for both first and second homes at historic lows,” an analyst told Caijing. In the past, the nationwide minimum down payment was set at 20% for first-time buyers and 30% for second-time purchasers.
