The move is aimed at first-time home buyers.
The People’s Bank of China lowered the floor of mortgage interest rates for first-time house buyers on Sunday to boost the property market and the economy, according to a statement on the central bank website.
The minimum mortgage rate is cut to 20 basis points below the loan prime rate with five-year and above tenors, said the central bank. The LPR with five-year and above tenors was set at 4.6% last month and the PBOC updates it on the 20th of every month. The PBOC said it will guide provincial authorities to set their own floors, noting the move is to support housing demand and promote “healthy” growth of the property market.