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Cities To Cut Housing Mortgage Rates, Down-payments

CHINA PRESS
MNI (Singapore)

Several cities including Wuhan and Hefei have lowered housing mortgage rates to 3.25-3.45% for first-time buyers following the People’s Bank of China’s move to scrap the lower limit of the rates last week, China Securities Journal reported. Banks are also prepared to cut the down-payment ratio to align with the policy floor set by the PBOC – no less than 15% and 20% for first- and second-time purchase, depending on sales performance, the newspaper reported citing an unnamed industry insider. With down-payments and interest rates dropping to low levels, further stimulus may focus on tax concessions for home purchases, the Journal said citing Zhao Wei, chief economist of Sinolink Securities.

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Several cities including Wuhan and Hefei have lowered housing mortgage rates to 3.25-3.45% for first-time buyers following the People’s Bank of China’s move to scrap the lower limit of the rates last week, China Securities Journal reported. Banks are also prepared to cut the down-payment ratio to align with the policy floor set by the PBOC – no less than 15% and 20% for first- and second-time purchase, depending on sales performance, the newspaper reported citing an unnamed industry insider. With down-payments and interest rates dropping to low levels, further stimulus may focus on tax concessions for home purchases, the Journal said citing Zhao Wei, chief economist of Sinolink Securities.