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Dec 18, 2023

China Cuts Down Payment, Mortgage Rates in Stimulus Drive

China moved to allow its largest cities to cut down payments for homebuyers and encouraged lenders to lower rates on existing mortgages in its latest attempt to halt a slide in the country’s

China moved to allow its largest cities to cut down payments for homebuyers and encouraged lenders to lower rates on existing mortgages in its latest attempt to halt a slide in the country’s residential property market.

The nationwide minimum down payment will be uniformly set at 20% for first-time buyers and 30% for second-time purchasers, according to a joint statement from the People’s Bank of China and National Administration of Financial Regulation on Thursday. Mortgage-rate cuts will be negotiated between banks and customers. Both policies go into effect Sept. 25.