Shanghai: In Shanghai, the minimum down payment ratio for individual commercial mortgages will be reduced from 20 percent to 15 percent for first-home purchases, and from 35 percent to 25 percent for second homes, according to a circular issued on Sunday.
Commercial banks will be guided to lower existing mortgage rates to further reduce mortgage interest expenditures for home buyers. Restrictions on home-buying qualifications will be further relaxed in specific locations in the city. The new measures will take effect on Tuesday.
Also on Sunday, the city of Shenzhen in Guangdong Province announced measures such as reducing the down payment ratio and optimizing district-specific home purchase restrictions.
Meanwhile, China’s six major national commercial banks announced plans to adjust mortgage rates for existing home loans in line with the central bank’s policies to stabilize the property market.
Detailed measures of the adjustment of mortgage rates for existing home loans will be released on October 12, according to statements from the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and Postal Savings Bank of China. The statements noted that the adjustment will be implemented by October 31, 2024. –The Daily Mail-CGTN news exchange item
