Beijing, Shanghai Cut Housing Down Payments

Beijing and Shanghai have rolled out a fresh round of housing stimulus, including lower down payment ratios and extension of deadlines for mortgage repayments. The down payment for first-time home buyers was cut to 30% from the previous 35-40%, and second-home deposits were cut to 40-50% from the previous 50-80%. The two major cities' abandonment of strict policies will likely boost transactions and stabilise house prices, said Chen Wenjing, market research director at China Index Academy. The mortgage rates in both cities for first homes were reduced by 45 bps to as low as 4.1%, and the maximum loan period in Beijing was extended to 30 years from 25 years. (Source: Yicai)