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MNI BRIEF: PBOC Lowers Mortgage Rate and Down-Payment Ratio

MNI (Singapore)
(MNI) Beijing
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The People’s Bank of China will lower rates of existing mortgages by 50 basis points on average and reduce the down-payment ratio for second-home buyers to 15% to support the real-estate market and boost consumption, and investment, Governor Pan Gongsheng told reporters on Tuesday.

Lenders will be guided to reduce interest rates on existing mortgages to levels close to those of newly issued loans, with the average expected reduction being around 50bp, Pan said, estimating the move would benefit 50 million households covering about 150 million people, and reduce annual household interest expenses by about CNY150 billion .

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The People’s Bank of China will lower rates of existing mortgages by 50 basis points on average and reduce the down-payment ratio for second-home buyers to 15% to support the real-estate market and boost consumption, and investment, Governor Pan Gongsheng told reporters on Tuesday.

Lenders will be guided to reduce interest rates on existing mortgages to levels close to those of newly issued loans, with the average expected reduction being around 50bp, Pan said, estimating the move would benefit 50 million households covering about 150 million people, and reduce annual household interest expenses by about CNY150 billion .

Keep reading...Show less